November is the key month to adjust your taxes for the year. You're still on time to make decisions that could lower what you'll pay when you file in 2026 (fiscal year 2025). In addition, many rules created in 2017 could change in 2026 if Congress doesn't extend them, so 2025 is a year to plan carefully.

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Quick fact:

- Nearly 9 out of 10 taxpayers use the standard deduction instead of itemizing expenses. This makes choosing your New Year's Eve moves more important than ever.

- 1 in 5 people who qualify for the Earned Income Credit (EITC) doesn't claim it, and leaves money on the table.

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What do some terms mean, in simple terms:

- Deduction: reduce the income on which taxes are calculated.

- Tax credit: Lower the tax you owe dollar by dollar.

- EITC: credit for working individuals and families who have low or moderate incomes.

- QBI Deduction (Section 199A): allows many business owners to pay taxes on only 80% of their profit, under certain conditions.

- Additional depreciation (“bonus”): a faster way to deduct the cost of equipment/machinery.

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9 moves to close 2025 well

1) Adjust your withholding or your estimated payment

- If you were under-deducted from your paycheck or are self-employed, pay an estimate now to avoid a “underpayment” penalty.

- IRS rule of thumb: Pay at least the same as your previous year's tax (or 110% if you earned more), or 90% of what you owe this year.

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2) Increase your retirement contributions before December 31

- Raising your contribution to the traditional 401 (k) lowers your taxable income today.

- If you don't have a plan at work, prepare your IRA contribution (you can contribute until the April deadline), but decide now so you don't forget.

- If you qualify, the Saver's Credit can give you extra credit for saving for retirement.

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3) Check if you qualify for the EITC and other family credits

- Many eligible people don't ask for it because of ignorance or incomplete papers. Also check the Child Credit and the Dependent Care Credit if you paid for child care or child care.

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4) Evaluate “bundling” donations (“bunching”)

- If you don't normally itemize, consider concentrating donations in a single year to exceed the standard deduction, or using a donor-advised fund to plan several years of support.

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5) Sell losses to offset profits (investments)

- If you sold at a profit this year, you can sell at a loss to reduce the tax. If your net losses exceed your earnings, you can deduct up to $3,000 against other income and the rest goes to future years.

- Avoid the “wash sale” rule: don't buy the same investment 30 days before or after.

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6) Business Owners: Invest Smartly

- The additional depreciation (“bonus”) is 40% by 2025. This can advance part of the deduction when buying eligible equipment before the end of the year.

- Check if Section 179 (immediate deduction) or normal depreciation suits you. Don't buy to buy: project cash flow and taxes.

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7) Protect your QBI deduction (Section 199A)

- This deduction of up to 20% of the profits of many businesses is effective until 2025 unless the law changes. Take care of your income levels, pay reasonable salaries if you operate via S-Corp and avoid surprises that push you out of bounds.

- Consider the timing of billing and expenses (accelerating expenses or deferring revenues) to be in more favorable ranges.

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8) Maximize accounts with a health tax advantage

- HSA: If you have a high-deductible health plan, contributing to an HSA gives you triple benefit: you deduct today, grow tax-free and you can withdraw tax-free for medical expenses.

- FSA: check balance and dates. Many FSAs are “use it or lose it”, or they allow a small carryover.

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9) Mark these dates

- December 31, 2025: last day for 401 (k) contributions, donations, equipment purchases, and for making gains/losses.

- January 15, 2026: The 4th federal estimated payment of 2025 is due (if applicable).

- April 2026: deadline for IRA/HSA contributions for 2025 (check official IRS calendar).

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Why does 2025 matter so much?

- Several rules created in 2017 are scheduled to change in 2026 if there is no new law: higher standard deduction, $10,000 limit on state and local taxes (SALT), and the QBI deduction, among others. Anticipating this year can make a difference in your bill next year.

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How we help you at La Familia Multiservices

- Express diagnosis of your 2025 situation.

- Action plan before December 31 (employees, contractors, and business owners).

- Credit review: EITC, children, education and retirement savings

- Business strategy: QBI, depreciation, payroll and estimates.

Schedule your appointment today and close the year with peace of mind.

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Sources and references

- Standard deduction: percentage of taxpayers who use it. Tax Foundation (based on IRS data): https://taxfoundation.org/data/all/federal/most-taxpayers-claim-standard-deduction/

- EITC: 1 in 5 eligible people don't claim it. IRS EITC Central: https://www.eitc.irs.gov/

- Estimates and rules of secure payment (safe harbor). IRS — Estimated Taxes: https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

- Qualified Business Income Deduction (QBI). IRS — FAQs 199A: https://www.irs.gov/newsroom/qualified-business-income-deduction-faqs

- Provisions that expire after 2025 (TCJA). Tax Policy Center: https://www.taxpolicycenter.org/briefing-book/what-are-major-federal-tax-provisions-scheduled-expire-2025

- Additional depreciation (bonus depreciation) and percentages per year. IRS — Additional First Year Depreciation: https://www.irs.gov/businesses/small-businesses-self-employed/additional-first-year-depreciation

- $3,000 limit for capital losses IRS Topic No. 409: https://www.irs.gov/taxtopics/tc409

Note: This guide is informational and is not a substitute for personalized advice. The rules may vary by state and change if there is new law. Check current deadlines and dates with the IRS or schedule with us to review your case.

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