Before the Year Ends: 4 Tax Items Worth Reviewing

Between holiday shopping, cookie baking, school recitals, and everything else packed into December, tax planning probably is not at the top of your list. But before the year closes, a quick financial review can help you catch issues early, make smarter decisions, and avoid unwelcome surprises when tax season arrives.

Here are four areas worth looking at now.

#1. Check Your Income, Withholding, and Tax Payments

Your tax situation can change quickly when your income changes.

A new job, bonus, investment income, or side work can all affect what you ultimately owe. Take a look at your year-to-date income and compare it with the taxes you have already paid through withholding or estimated payments.

For business owners, this is also a good time to review projected year-end income and make sure estimated payments still make sense.

If the numbers look different than expected, address it now. A year-end conversation gives you more options than discovering a surprise balance when your return is prepared.

#2: Clean Up Your Financial Records

Good tax planning starts with good information.

Make sure important documents, receipts, charitable contribution records, and other financial information are organized and easy to locate.

If you own a business, take a closer look at your books. Bank accounts should be reconciled, transactions should be categorized correctly, and outstanding receivables or expenses should be reviewed.

For nonprofits, this may also include reconciling donor records, grant activity, and restricted funds.

A few hours of cleanup now can prevent significantly more work later.

# 3: Review the Decisions You Still Have Time to Make

Some financial decisions can still affect the current tax year, which makes the final months of the year an important planning window.

If you already expect to purchase equipment, make charitable contributions, or increase retirement savings, review the timing and potential tax treatment before acting.

The same applies to businesses considering major purchases or investments. A deduction can be valuable, but tax savings should support a sound financial decision, not drive one.

This is where planning matters. The right question is not simply, “Can I deduct this?” It is, “Does this make financial sense, and what is the most effective way to handle it?”

#4: Think About What Changed

One of the easiest things to overlook at tax time is a major change that happened months earlier.

Did you get married, have a child, buy or sell a home, retire, change jobs, or receive significant investment income?

For business owners, did you hire employees, purchase assets, change ownership, expand operations, or begin doing business somewhere new?

Changes like these can affect more than your annual return. They may create new filing requirements, payroll obligations, estimated payments, or other reporting considerations.



Make a short list of anything significant that changed this year and share it with your tax professional. Even something that seems unrelated to taxes may be worth discussing.

Do Not Wait Until Filing Season

Year-end planning is less about finding a last-minute tax trick and more about making sure there are no surprises waiting for you in the new year.

If your income changed, your business grew, you made a major financial decision, or something simply does not look right, now is the time to take a closer look.

At Donnelly-Boland, we work with individuals, businesses, and nonprofit organizations throughout the year to help them understand where they stand, stay ahead of tax obligations, and make informed financial decisions.



So, before the decorations come down and tax season officially begins, take a little time to review the year behind you. A few thoughtful steps now can make January, and the months that follow, a whole lot easier.