Group 1 - Out-of-pocket medical expenses are only deductible if they exceed 7.5% of adjusted gross income (AGI), and prepaying medical appointments could help exceed this threshold [1] - Charitable donations can be timed to maximize tax deductions by bunching several years of donations into one year, helping to clear the itemization limit [2] - Prepaying January mortgage payments can allow for interest deductions on the 2025 tax return, similar to property taxes [3] Group 2 - The standard deduction for 2025 has increased to $15,750 for single filers, $31,500 for married filing jointly, and $23,625 for head of household, making it beneficial to itemize if expenses exceed these amounts [4] - The end of the year is a critical time for making tax moves to increase refunds or reduce tax bills, with many credits and deductions having a December 31 deadline [5] - Correcting withholding errors before the final paycheck of the year can help avoid unexpected tax bills [6] Group 3 - Contributions to retirement accounts like traditional IRAs or 401(k)s can lower taxable income, providing immediate tax benefits [7] - The 2025 contribution limit for 401(k)s is $23,500 for those under 50, with catch-up contributions available for those over 50 [8] - Traditional IRA contributions can reduce taxes depending on income, while Roth contributions do not provide immediate tax benefits but allow for tax-free withdrawals in retirement [11] Group 4 - Health Savings Accounts (HSAs) allow tax-free contributions for medical costs, with limits of $4,300 for individuals and $8,550 for families in 2025 [12] - Flexible Spending Accounts (FSAs) require careful management as unused funds are typically forfeited, necessitating their use by December 31 [13] - Tax-loss harvesting can offset capital gains, but care must be taken to avoid the wash-sale rule [14][15] Group 5 - Adjusting tax withholding and estimated payments is crucial in the final weeks of the year to avoid underpayment penalties [17][18] - Self-employed individuals can manage their tax bills by timing income and expenses, such as deferring income until the next year [26] - Business expenses paid before year-end can reduce taxable income for self-employed individuals, with Section 179 allowing for significant deductions [25] Group 6 - Tax credits, such as those for energy efficiency improvements and electric vehicles, require action before the year ends to maximize benefits [34][36] - The American Opportunity Tax Credit and Lifetime Learning Credit for education expenses can provide significant savings if tuition is paid before year-end [37] - December is a crucial month for tax planning, with opportunities to boost refunds through strategic financial moves [39]