Six Smart Tax Moves for Year-End Savings
As the year winds down, so do our wallets – between holidays, travel, and other year-end expenses, it’s a costly time for many. Here are some simple strategies that can help you save on taxes and get yourself set up for financial success in the new year:
- Review Your IRA: If you’re 73 or older, you may need to take a Required Minimum Distribution. Stick to the required amount to avoid unnecessary taxes.
- Give to Charity: Donations to qualified nonprofits can lower your taxable income while supporting causes that matter to you.
- Rebalance Your Investments: Offset capital gains by selling underperforming stocks at a loss and review your overall portfolio.
- Make Early Payments: If you have deductible expenses such as medical bills or property taxes, pay them before year-end to take advantage of this year’s deductions.
- Defer Income: If you’re expecting a year-end bonus or freelance income, delay it until the new year to reduce your 2025 tax bill.
- Pay Your Mortgage Early: If you own a home, make your January mortgage payment in December to increase this year’s deductible interest.
These tips are a great starting point for year-end financial wellness. Want to make a meaningful impact while continuing to save? Consider a gift to support the University of Mary Washington before Dec. 31, 2025. It’s a wonderful way to close out the year while creating future opportunities for UMW students.
Please note: Mary Washington will have limited business hours and mail delivery Dec. 22-31, so all gifts sent by mail must be postmarked by Dec. 31, 2025, for charitable deduction eligibility. To give by credit card, visit umw.edu/gift and select GIVE NOW by Dec. 31 at 11:59 p.m. If making a gift via IRA distribution or securities, please contact Jeremy Vaughn at jvaughn@umw.edu or 540-654-2063.
This story originally ran in the fall 2025 Gift Planning Connections Newsletter.
-Article written by Assistant Director of Advancement Communications Jill Graziano Laiacona ’04
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