1. Maximize retirement contributions 

For most employees, there are only a few paychecks left between now and the end of the year. Now is a great time to see if you can increase your employer-sponsored plan contributions. 401(k), 403(b), and 457 plans: For 2025, you can contribute up to $23,500. If you are 50 or older, you can make an additional catch-up contribution of up to $7,500.* If you haven't reached your limit, consider increasing your payroll deferrals for the rest of the year.

2. Harvest investment losses 

This strategy, known as "tax-loss harvesting," involves selling investments at a loss to offset capital gains from other investments sold during the year. 

• Offset gains: Losses offset gains dollar-for-dollar. If your losses exceed your gains, you can use up to $3,000 of the excess to offset other income.**

• Carry over losses: Any remaining losses can be carried over to offset gains in future years.

• Avoid the wash-sale rule: Be sure not to repurchase the same or a "substantially identical" security within 30 days before or after the sale to avoid triggering this rule. 

  
  

3. Bunch charitable donations

By donating a lump sum to charity in a single year, you can "bunch" your itemized deductions and surpass the standard deduction threshold for that year. 

• Itemize strategically: Since the standard deduction is substantial for 2025 ($31,500 for married couples filing jointly)**, this can be an effective way to lower your tax bill. In the following year, you can take the standard deduction.

• Consider a donor-advised fund: For a tax break now, contribute appreciated stock or cash to a donor-advised fund. You can take an immediate deduction, and the fund's assets accumulate tax-free. You can then distribute the money to charities over time. 

4. Use a Health Savings Account (HSA) 

For those with a high-deductible health plan, an HSA offers a "triple-tax advantage". 

• Tax deductions: Contributions are tax-deductible, reducing your taxable income.

• Tax-free growth and withdrawals: The money accumulates and can be withdrawn tax-free for qualified medical expenses.

• Deadlines: You have until the April 2026 tax-filing deadline to contribute for the 2025 tax year. For 2025, the contribution limit is $4,300 for individuals and $8,550 for families. ***

  
  

5. Reset Capital Gains.

If you find yourself in the 0% capital gains tax bracket, you may want to consider realizing gains up to the taxable income limits. For 2025

For single filers

• 0% rate: For taxable income up to $48,350.****

For married couples filing jointly

• 0% rate: For taxable income up to $96,700.****

For heads of household

• 0% rate: For taxable income up to $64,750.****

  
  

Sources:  IRS notice 2024-80, 2025 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living.*IRS update https://www.irs.gov/forms-pubs/how-to-update-withholding-to-account-for-tax-law-changes-for-2025#:~:text=An increase in the standard deduction.,sec… ***IRS Pub 969 and RP-2024-25

****IRS Pub 550

Disclaimer: Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor. Stratos Wealth Advisors and Synergy Wealth Management are separate entities. 

Neither Stratos nor Synergy Wealth Management provides legal or tax advice. Please consult legal or tax professionals for specific information regarding your individual situation. There is no guarantee that tax-loss harvesting saves tax dollars.