Maximizing Your Finances: Year-End Tax Planning Tips for 2024

As the year draws to a close, it’s time to engage in financial housekeeping to ensure that you’re making the most of your money. Year-end tax planning is a crucial aspect of managing your finances, and with 2024 on the horizon, it’s the perfect time to implement strategic measures to optimize your tax situation. In this blog post, we’ll explore some key tips for year-end tax planning that can help you minimize your tax liability and maximize your financial well-being.

Review Your Income and Expenses:

Start your year-end tax planning by conducting a thorough review of your income and expenses for the year. This will give you a clear understanding of your financial situation and help identify areas where you can potentially make adjustments. Consider deferring income or accelerating expenses to optimize your taxable income for the year.

Utilize Tax-Advantaged Accounts:

Contributions to tax-advantaged accounts, such as 401(k)s, IRAs, and Health Savings Accounts (HSAs), can significantly impact your tax liability. Make sure you’re maximizing your contributions to these accounts before the year-end deadline. Not only do these contributions reduce your taxable income, but they also offer long-term financial benefits.

Strategize Capital Gains and Losses:

Review your investment portfolio and consider tax-loss harvesting to offset capital gains. If you have investments that have experienced losses, selling them before the end of the year can help offset capital gains and reduce your overall tax liability. On the flip side, if you’re in a lower tax bracket, you might want to consider realizing some capital gains at a potentially lower tax rate.

Leverage Charitable Contributions:

‘Tis the season for giving, and charitable contributions can serve a dual purpose by supporting causes you care about while potentially reducing your tax burden. Be sure to make any planned charitable donations before the end of the year and keep detailed records for tax documentation.  You may also consider donating appreciated securities in which you receive the added benefit of a tax deduction at fair market value without being taxed on the gain.

Standard versus Itemized deductions:

If you typically take the standard deduction you may consider bunching several years of itemized deductions such as charity into one year to qualify to itemize your deductions.  If you prefer to provide the charity with funds over time you can even contribute to a Donor Advised Fund providing you control over when the funds are contributed to the charity.

Review and Adjust Withholdings:

Review your withholding to ensure that it aligns with your current financial situation. Changes in income, deductions, or family size may necessitate adjustments to your withholding to avoid surprises come tax season. The goal is to strike a balance, ensuring you’re not overpaying or underpaying taxes throughout the year.

Take Advantage of Tax Credits:

Explore available tax credits that could further reduce your tax liability. This might include education credits, energy-efficient home improvements, or child tax credits. Research the eligibility criteria and make the necessary arrangements to claim these credits.

Business tax planning:

If you own a business there are many planning opportunities to consider to minimize your tax situation such as changing your method of accounting for tax purposes from accrual to cash or to write off your inventory or the myriad of many other accounting method changes.  You can also evaluate whether to accelerate your fixed asset spend and consider prepaying your state tax workaround PTE deposits.  If you are focused on retirement savings you can consider the multitude of available business retirement plans to meet your needs.

Beneficial Ownership Information Report:

The Corporate Transparency Act (CTA) requires privately owned entities to file a Beneficial Ownership Information Report (BOI Report) starting January 1, 2024. Companies existing prior to January 1, 2024 have until January 1, 2025 to file the report.  However, new entities established after December 31, 2023 must report their beneficial owners within 30 days of formation.

Taking advantage of annual gift limits:

If you are interested in transferring your wealth to friends and/or family; in 2023, you can gift up to $17,000 ($34,000 per married couple) per recipient without the need to file a gift tax return and pay gift tax or utilize a portion of your lifetime exemption.

Stay Informed about Tax Law Changes:

Tax laws are dynamic and subject to change. Stay informed about any updates or modifications to the tax code that may affect your financial situation. Being proactive in understanding these changes can help you make informed decisions and adapt your tax strategy accordingly.

Consult with Your WFY Tax Professional:

If your financial situation is complex or if you’re unsure about the best strategies for your specific circumstances, it’s wise to consult with a tax professional. They can provide personalized advice tailored to your needs and help you navigate the ever-changing tax landscape.


In conclusion, year-end tax planning is a proactive approach to managing your finances, and by taking the time to implement these strategies, you can potentially save money and set yourself up for a more prosperous financial future. Remember that individual tax situations vary, so it’s crucial to assess your unique circumstances and seek professional advice if needed.

To learn more and discuss your year-end tax planning situation, contact us here. You can sign-up for our newsletter here to receive more updates.


Wright Ford Young & Co. is headquartered in Irvine, CA and is the largest single office CPA firm in Orange County. WFY is a full service corporate accounting firm offering audit, tax, estate and trust, and business consulting services to closely held company and family business owners. More information about our Firm can be found at