As the year winds down, Tim shares five practical steps you can take right now to lower next year’s tax bill. From maximizing retirement contributions to understanding energy-efficiency credits, this episode focuses on simple, actionable strategies for creative professionals and self-employed listeners. Tim breaks down how tax-deferred accounts, health savings accounts, and even small investment decisions can make a meaningful difference — without the last-minute stress of filing season. 

Five Key Takeaways:

1. Contribute to tax-deferred retirement accounts. Deposits into IRAs, 401(k)s, and similar accounts reduce current-year taxable income. Remember: new accounts must be opened before December 31 to count for this tax year.
2. Use a Health Savings Account (HSA) if eligible. HSAs offer a triple tax advantage: contributions are tax-deductible, growth is untaxed, and qualified withdrawals are tax-free.
3. Offset gains with losses. Selling underperforming investments in non-retirement accounts lets you claim up to $3,000 in capital losses per year to reduce taxable income — but watch for wash-sale rules.
4. Take advantage of home energy credits. Energy-efficient home upgrades (like HVAC systems, doors, or windows) can qualify for valuable federal credits, but some expire at the end of 2025.
5. Consider strategic charitable giving. While deductions only apply if your itemized total exceeds the standard deduction, bundling several years of giving into one tax year can increase tax efficiency for higher earners.

Links:
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The Congress.Gov page on HSAs
Energy Efficient Home Improvement Credit