7 Year-End Strategies to Save You Money On Taxes
Some extra saving, some stock moves, some charitable giving … these strategies all can add up to tax savings for many people. But the clock is ticking.


In the novel David Copperfield, Charles Dickens called procrastination the “thief of time.”
Procrastination also can cost you plenty of cold hard cash when it comes to your income taxes.
There are several strategies that can help you reduce your taxes this year and in the future — but you must move quickly. You’ll have to beat certain deadlines, or the opportunities will disappear.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1. Maximize your savings.
Consider putting more money into your individual retirement accounts, Roth IRAs, 401(k)s, 403(b)s, etc. Saving any amount toward your retirement is smart — but if you can, consider contributing the maximum allowed.
- The limit for tax-deferred retirement accounts (such as 401(k), 401(b), most 457 plans and the Thrift Savings Plan) is $18,000 for 2017, and you have until Dec. 31 to get the money in there. Savers over 50 also can make a catch-up contribution of $6,000 for a total of $24,000.
- No 401(k)? You can contribute up to $5,500 ($6,500 if you’re 50 or older) to a traditional IRA and/or Roth IRA until April 15, 2018, and have it count toward your 2017 taxes. The Roth won’t reduce your current tax bill, but earnings and withdrawals are typically income tax-free — something you’ll love in the future.
- Two other options are available for those who are self-employed: a SEP IRA and a Solo 401(k). Each has a maximum contribution amount of $54,000, or $60,000 for those over 50.
2. Look at your losses.
Although 2017 was a great year for most investors, many still have stocks, exchange traded funds (ETFs) or mutual funds that experienced a capital loss. If these losses are greater than your capital gains, you may be able to deduct them from your ordinary income — up to $3,000. If you can’t write off all your stock losses this year, you can carry over the loss to future tax years. (There are rules for making these calculations, so be sure to consult your tax professional.)
3. Think about deferring some income.
If you’re concerned because you’re on the cusp of entering the next tax bracket this year, or if you expect your income to be less next year, consider deferring a paycheck or other income to minimize your current liability.
4. Accelerate your deductions.
You also may want to look at paying some deductible expenses this year rather than next to temporarily lower your income. If you use a credit card to pay one or more of next year’s bills today, you can deduct the expenses in 2017, then pay off that amount next year. (This would work for medical or dental expenses, for example, or if you’re planning to add solar panels to your home.) If you’re retired or self-employed, prepaying the balance of your estimated state tax liability this year rather than waiting for January would secure the deduction for this current tax year.
5. Consider donating appreciated securities to charity.
Most publicly traded securities with unrealized long‐term gains can be donated to a public charity (501(c)(3). You can then claim the fair market value as an itemized deduction on your federal tax return — up to 30% of your adjusted gross income. You won’t owe capital gains taxes because the securities were donated, not sold. If you wish to make a larger contribution ($5,000 or more), look at establishing a donor-advised fund. Most mutual fund companies offer this charitable-giving program.
6. Put off that mutual fund purchase.
Here’s one strategy where a little delay could pay off. Most mutual funds distribute capital gains at the end of the year, and if the fund is in a non-qualified account (meaning a tax-deferred account such as a 401(k) or 403(b) plan), that money is taxable to you regardless of when you made the purchase. If you buy the mutual fund after the capital gains distribution, you’ll not only avoid the federal income tax, but the price will usually drop, so you could get it for less.
7. Make financial gifts.
This tip won’t help you reduce taxes, but it may help shield your money from federal estate and gift taxes. For 2017, federal estate taxes kick in for individuals with estates exceeding $5.49 million. You can give up to $14,000 in non-taxable gifts this year to as many people as you like and can afford. And the gifts don’t count toward your lifetime exemption from this gift tax.
Take the next step now.
These are just a few of the year-end strategies you can use to manage your tax liability. Don’t miss out by waiting until the new year to think about your tax return. Talk to your financial adviser and tax professional as soon as possible about how you can reduce your taxes in 2017.
Kim Franke-Folstad contributed to this article.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Michael Woloshin is an Investment Adviser Representative, insurance professional and the founder and managing director of Woloshin Investment Management. His priority is helping those who are about to retire or who already have retired pursue their financial independence utilizing customized income strategies. Woloshin has over 35 years of experience advising clients.
-
S&P, Nasdaq Hit New Highs: Stock Market Today
A late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
-
Five Things to Consider Now If You Want to Retire in 2026
To retire with confidence in the year ahead, tackle these essential tasks right now.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy Investing
Investing in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Escaping the New Golden Handcuffs: A Financial Expert Has a Plan for Today's Executives
Feeling stuck in your job? It could be your complicated compensation package, but it also could be where you live, your family or even how you view yourself.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have Millions
Private market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It Helps
Saving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
I'm a Financial Planner: How to Dodge a Retirement Danger You May Not Have Heard About
Timing is everything, and sequence of returns risk can mean the difference between a retirement nest egg that's overflowing … or empty.
-
Caring for Aging Parents: An Expert Guide to Easing the Financial and Emotional Strain
Early conversations, financial planning and understanding the progression of care needs can help to mitigate stress and protect family relationships.
-
I'm a Financial Adviser: The OBBB Is a Reminder for Older People to Have a Long-Term Plan
The new tax bill presents a good opportunity for retirees to revisit tax plans, look into doing some Roth conversions and consider plans for long-term care.
-
I'm an Insurance Expert: This Is Exactly Why Your Insurance Rates Are Soaring (and What You Can Do)
A dramatic rise in the frequency and cost of severe weather and wildfires means you need to prepare, prepare, prepare — no matter where you live — for higher premiums.