Year-End Tax Planning Strategies for Individuals and Small Businesses

Most people don’t start thinking about taxes until April — but by then, it’s too late to make a real impact. The real work, the kind that actually moves the numbers, happens now, in the final weeks of the year. This is your window to shift income, manage expenses, and set yourself up to start the new year with intention instead of reaction.

At JHM, we know how much peace of mind comes from having a plan. Our team works with business owners year-round to help them stay ahead, not scramble. Here’s how you can focus your attention now for smarter, more effective tax planning in 2026.

Review Income and Expenses

If you’re close to jumping tax brackets, a little timing can help. Hold an invoice until January, prepay the rent, insurance, or even next quarter’s software fees. This small-scale maneuvering can help change your bottom line.

That’s the difference between a plan and a scramble, and where our team comes in. We help you identify expenses to decide when to delay or accelerate payments and save you money, instead of just shifting the problem.

Maximize Your Dedication and Credits

There’s no magic in deductions, just details. You’d be surprised how many people forget the obvious ones: networking lunches, office software, mileage, education, and even marketing subscriptions. 

Add in credits like the Work Opportunity Tax Credit (still available through the end of 2025) or the Small Business Health Care Tax Credit if you have employees.

For individuals, topping up retirement and health accounts matters more than you might think. The 2025 HSA cap jumps to $4,300 for singles to $8,550 for families, with a $1,000 catch-up if you’re 55+. That one move can quietly trim your taxable income while setting up next year’s safety net.

Reassess Your Structure

The business structure isn’t static. What worked when you started out might not fit now. Many LLCs and sole props shift to S-corps once revenue grows – it eliminates self-employment tax. C-Corps carry a 21% federal rate  but face double taxation when profits move out as dividends.

If you’ve not reviewed your structure in a while, now is the perfect time to do so.

Retirement As A Tax Tool

Retirement isn’t only about later. It’s one of the few legal ways to shrink today’s bill. 

For 2025, 401(k) contributions hit $23,500 with another $7,500 if you’re over 50. SEP-IRAs got up to 25% of compensation, capped at $70,000.

There aren’t minor numbers. Under SECURE 2.0, eligible employers may claim up to $1,000 per employee per year for up to 5 years, plus 100% of their qualified start-up costs (capped at $5,000) for the first 3 years. This is where the best accountant in Cleveland, TN, can help you understand what you can and can’t claim to reduce your tax bill.

Charitable Giving Done Smart

Giving isn’t only about the goodwill; it’s about timing. 

Donating long-term appreciated assets (those held for more than one year) directly to a qualified charity lets you avoid realizing capital gain, and may allow for a tax deduction for the fair market value of the asset. This is subject to deduction limits (typically up to 30% of your AGI for such gifts to a public charity). For cash donations, however, the deduction limit is often higher.

How JHM Can Help

At JHM, we help business owners think ahead—strategically timing income, managing expenses, and structuring cash flow so every move works harder for you. Don’t wait until tax season to take control. Contact us today, and let’s use the time left in this year to set you up for a stronger, more profitable start to the next.