Core Insights - The 2025 tax year is approaching its end, and proactive planning can help reduce tax liabilities and enhance savings [1] - Taxpayers are expected to pay more upfront in 2025 but receive larger refunds in 2026, with an estimated average refund of $3,743, reflecting a 17% increase from 2025 [2] Tax-Saving Strategies - Contributions to retirement plans and college savings accounts must be made by December 31, with a contribution limit of $23,500 for 401(k) or 403(b) plans in 2025, plus an additional $7,500 for those aged 50 or older [4][5] - For individuals aged 73 or older, December 31 is the deadline for taking required minimum distributions (RMDs) to avoid penalties [6] Investment Strategies - Tax-loss harvesting allows investors to sell underperforming assets to offset capital gains, with up to $3,000 of remaining losses applicable to ordinary income each year, and any excess losses can be carried forward [7] - The wash-sale rule, which prevents repurchasing substantially identical investments within 30 days of sale, currently does not apply to cryptocurrencies [8] Itemization Considerations - Less than 10% of taxpayers itemize deductions, but it may be beneficial if deductions exceed the standard deduction of $15,750 for single filers and $31,500 for married couples in 2025 [9]