There’s still work to be done

Now that the calendar is winding down, there’s still time to take certain year-end tax moves, but investors need to act quickly, experts say.

As tax season approaches, these strategies can increase your refund by the amount you’ve already paid or reduce the amount of taxes you owe.

However, most planned transitions must be completed by December 31 to count towards 2025. Some exceptions include pre-tax contributions to individual retirement accounts or health savings accounts, which can be made before the 2026 tax deadline.

Please note that timing can be difficult as the trading day is shortened on Christmas Eve, major exchanges close on Christmas Day and some financial companies have holidays.

Many taxpayers could receive even larger tax refunds in 2026 thanks to President Donald Trump’s “Big and Beautiful Bill” changes in 2025. Experts say the IRS has not updated employer tax withholding tables since the law was enacted, potentially leaving many workers with benefits when filing taxes.

With limited time left until Dec. 31, financial experts say there are some last-minute tax strategies to consider.

One common year-end move is to recoup tax losses, or sell assets in a brokerage account that have incurred losses to offset portfolio gains on your tax return. If your investment losses exceed your gains, you can use the excess to reduce your regular income by up to $3,000 per year.

however, S&P500 Experts say many investors won’t incur losses in their brokerage accounts in 2025, as the stock is up nearly 17% year-to-date as of Dec. 22.

Alternatively, investors in lower tax brackets may consider strategically selling profitable assets, so-called “tax gain harvesting.” If your taxable income is in the 0% capital gains range, you can diversify your portfolio or make a profit without triggering a tax bill.

In any case, depending on your investments, you have enough time to make a loss or profit before the end of the year.

“There’s a reason New Year’s Eve is a full trading day,” said Michael DeMassa, a certified financial planner and founder of Forza Wealth Management in Sarasota, Florida. “There is no problem as long as the settlement date is on the calendar year (December 31st).”

Another popular year-end strategy is to convert to a Roth individual retirement account. It transfers pre-tax or non-deductible IRA funds to a Roth IRA to begin future tax-free growth.

However, forecasting your income is important because you will have to pay upfront taxes on the converted balance. Many advisors wait until the end of the year to convert a Roth when they have a more accurate estimate of other income.

Depending on Ross’ turnaround strategy, that move could be “pretty quick,” said Judy Brown, CFP with C&H Group in the Washington, D.C., and Baltimore area.

“We choose the highest-rated funds among them and do an in-kind conversion, which moves assets from one account to another without selling them,” she said. “You’ll be fine the next day.”

But if you don’t have an existing Roth IRA set up to receive the funds, the process can take longer, said Brown, who is also a certified public accountant. “Opening an account now is probably the biggest barrier.”