As the final quarter of the year begins, many business owners and individuals start thinking about year-end taxes. But waiting until the last minute often means missed opportunities and unnecessary stress. The truth is, the final 90 days of the year offer a critical window to reduce your tax liability, maximize savings, and position yourself for financial success in the year ahead.
At SJ Gorowitz, we help clients use this period to their advantage with strategies that combine proactive planning, compliance, and long-term alignment.
Here’s what to focus on in Q4.
- Review your year-to-date financials
Start by pulling a clean set of financial statements including income, expenses, and cash flow. Compare your current year-to-date numbers against projections. Are you on track to meet your goals? Are revenues higher or lower than expected? This clarity helps identify opportunities for deductions, credits, and adjustments before December 31.
- Accelerate or defer income and expenses
Timing matters. Depending on your situation, it may make sense to accelerate expenses into this year or defer income into the next. For example:
- Accelerate expenses by paying bonuses, stocking up on supplies, or making planned purchases now.
- Defer income if you expect to be in a lower tax bracket next year.
A CPA can help you model which approach saves you more.
- Maximize retirement contributions
Retirement accounts remain one of the most effective tax planning tools. Contributing to a 401(k), IRA, or SEP can reduce your taxable income while also strengthening your long-term wealth plan. Q4 is the time to confirm whether you’ve contributed the maximum or if there’s still room to grow.
- Revisit charitable giving
Donations made before year-end may be deductible, while also supporting causes you care about. Consider cash gifts, but also explore giving appreciated assets such as stock, which may offer additional tax advantages.
- Check estimated taxes and withholdings
Review your quarterly estimated tax payments to avoid underpayment penalties. If your income has shifted significantly, adjust your final Q4 payment. This is also a good time to confirm payroll withholdings for employees are accurate and compliant.
- Consider entity optimization
Your current entity structure might not be the most tax-efficient for the year ahead. Q4 is a smart time to revisit whether an S-Corp election, partnership structure, or other entity change could reduce liability and improve cash flow.
- Don’t forget tax credits
Explore available credits before they expire:
- R&D credits for qualifying innovation expenses
- Energy efficiency credits
- Hiring incentives (such as for veterans or other groups)
Credits can lower your liability dollar-for-dollar — and many business owners miss them.
- Plan for 2025 and beyond
Tax planning isn’t just about closing the year strong. It’s about creating habits and systems that keep you prepared all year long. Once you’ve made your year-end moves, work with your CPA to map a proactive plan for the coming year.
The last 90 days of the year can make the difference between overpaying and optimizing. With the right strategy, you’ll not only lower your 2024 liability but also set the stage for smarter financial decisions in 2025.
At SJ Gorowitz, we specialize in helping clients move from reactive tax filing to proactive tax planning. If you’re ready to take advantage of year-end strategies, contact our team today.
