7 Last-Minute Tax Moves High-Income Earners Can Still Do Before Year-End?

It’s December… and you think you’re done

It’s December. If you’re a high-income earner, you’re probably thinking your tax strategy for the year is set. You maxed out the 401(k). You made the estimated payments. What else is there to do?

But what if I told you there’s more you could be doing?

This year, we’ve been talking about a massive piece of legislation… the One Big Beautiful Bill Act (OBBBA). And it created a handful of last-minute opportunities. On top of that, there are existing rules people aren’t paying attention to, and they’re leaving money on the table.

So in the next few minutes, I’m going to reveal seven specific retirement and deduction-based moves you can seriously consider before December 31st. These are not your standard “drink water and fund your IRA” tips. This is about potentially saving not just hundreds, but possibly thousands of dollars on your 2025 tax bill.

Quick note: who am i to say this?

I’m a Certified Financial Planner. I’ve been in the financial industry for about 20 years, working for three of the largest financial institutions in the U.S. Fortune 50 companies. I’ve helped clients keep more of their money while they build multiple income streams for retirement.

And what I’m sharing here comes directly from real opportunities I’ve used with real clients.

Alright, let’s get into it.

1) Use the New 2025 SALT Cap Increase (High-Tax State Jackpot)

If you live in a high-tax state like California, New York, or New Jersey, you’ve felt the pain of the $10,000 SALT cap for years. You might pay $50,000+ in state income and property taxes… but you could only deduct $10,000.

That’s been one of the most painful parts of the tax code for high-income earners.

Here’s the big change:
For the 2025 tax year only, the new bill increases the SALT deduction cap from $10,000 to $40,000.

That’s a 400% increase.

If you’re in the 35% bracket, a $40,000 deduction could mean roughly $14,000 in tax savings. That’s not theory. That’s money you get to keep.

Two things to watch:

The benefit starts to phase out if your MAGI goes over $500,000.
You have to act before Dec 31.

What to do now:

If you pay estimated state taxes, make sure your final Q4 payment is paid in 2025, not January 2026.
Consider prepaying property taxes due early next year to capture them under the higher 2025 cap (if your county allows it and your tax pro agrees).

This is one of the biggest “easy wins” available this year.

2) Ages 60–63: “Supercharged” 401(k) Catch-Up (Secure 2.0 Is Finally Here)

This isn’t from the Big Beautiful Bill. This comes from Secure 2.0, and it’s finally kicking in during 2025.

A lot of high earners think, “I already maxed my 401(k). That’s it.”

Not if you’re 60, 61, 62, or 63.

For 2025:

Standard employee 401(k) limit: $23,500
Normal 50+ catch-up: $7,500
NEW special catch-up (ages 60–63): +$11,250

And this is only available for four years of your life.

What to do now:
Call HR or payroll today. Ask them to adjust your withholding on your final paycheck(s) to max this out.

If you don’t, that money just becomes taxable income on your paycheck and the window closes.

(And yeah… if you’re 63, it really is gone forever.)

3) Over 70½: Use a QCD to Kill Taxes on RMDs

If you’re over 70½, have a large traditional IRA, and you’re taking Required Minimum Distributions, you already know the problem:

RMDs are taxable. They can push you into a higher bracket and even raise Medicare premiums.

This is why i’m a big fan of Qualified Charitable Distributions (QCDs).

A QCD lets you send money directly from your IRA to a qualified charity (501(c)(3)).

For 2025, the annual QCD limit is:

$108,000 per person
$216,000 for a married couple (if both have IRAs)

Here’s the magic:

The QCD amount is excluded from taxable income
It can still count toward your RMD
It does not increase your AGI the way a normal withdrawal would

And it’s usually better than taking an RMD, paying taxes, and then donating later.

What to do now:
Contact your IRA custodian and tell them you want to make a Qualified Charitable Distribution before December 31st.

Important: the check must be made payable to the charity. Not to you.

4) Ages 65+: New Bonus Standard Deduction (Easy to Miss)

Here’s another gem inside the new bill. Specifically for taxpayers 65 and older.

Many retirees take the standard deduction because they don’t itemize anymore:

kids are grown
mortgage may be paid off
big itemized expenses aren’t there like they used to be

For 2025, there’s a new bonus deduction up to $6,000 for qualifying seniors.

This is on top of the existing extra amount you already get for being over 65.

Example from your transcript:

Single filer 65+ standard deduction + existing extra amount: $17,750
New bonus: +$6,000
Total: $23,750

If married and both 65+:

Bonus doubles to $12,000

Phaseouts:

Begins to phase out over $75,000 AGI (single)
Over $150,000 AGI (married)

There’s no fancy move here. Just make sure it gets captured when filing. This is the kind of thing people miss when their preparer isn’t up to date.

5) Business Owners: QBI Is Now Permanent + Retirement “One-Two Punch”

If you’re an entrepreneur, consultant, coach, or you own a pass-through business, this one matters.

The Qualified Business Income (QBI) deduction lets you deduct up to 20% of business income. It’s been one of the best perks for pass-through owners, but it always felt like it was living under the threat of expiring.

The new bill makes the 20% QBI deduction permanent, which gives you planning certainty.

Now the strategy becomes clearer:

maximize pass-through income to take full advantage of the 20% write-off
pair that with maximum retirement funding

Year-end move:

set up a Solo 401(k) or SEP IRA by December 31, 2025
you may be able to contribute up to $70,000 (depending on income and plan rules)
the plan has to be established by year-end, even if funded later

This is the cornerstone move for business owners trying to keep more and build long-term.

6) New for 2025: Auto Loan Interest Deduction (If You Bought Domestic)

This is niche, but interesting.

If you bought a new car in 2025, rates are high, and a big chunk of your payment is interest with zero tax benefit.

New rule: for vehicles purchased in 2025, you may be able to deduct up to $10,000 in auto loan interest.

Catch:

Final assembly must have taken place in the United States

What to do:
Keep clean records:

purchase agreement
loan statements showing interest paid

Since this is brand new, IRS forms may still be evolving. This is a “talk to your tax pro” item to make sure you qualify and claim it correctly.

7) Tax-Loss Harvesting (Turn Volatility Into a Benefit)

This one isn’t new, but with the volatility we’ve seen, it’s more important than it’s been recently.

If you have gains you’re dreading paying taxes on… and you have positions that are down, you can look at tax-loss harvesting.

How it works:

Sell investments at a loss to create capital losses
Those losses can offset capital gains dollar for dollar
If losses exceed gains, you can use up to $3,000 against ordinary income
Extra losses can carry forward to future years

Key rule: the wash sale rule
You can’t sell for a loss and buy the same (or nearly identical) investment within 30 days.

A good advisor or platform usually flags this.

Simple approach:

review holdings before the last trading day of the year
sell “losers” with weak prospects
reinvest into a similar, but not identical. Investment so you stay in the market

Example:
Sell one large-cap tech ETF, buy a different one tracking a similar but different index.

Rapid Recap: The Most Urgent Moves

If that felt like a fire hose… fair. Here’s the fast version:

Ages 60–63: Call HR and “supercharge” your 401(k) catch-up.
High-tax states: Max the temporary $40,000 SALT deduction while you can.
Over 70½ + charitable: Use a QCD to satisfy RMDs tax-free.
Age 65+: Don’t miss the new $6,000 senior bonus deduction (phaseouts apply).
Business owners: QBI is permanent. Pair it with a Solo 401(k)/SEP setup by 12/31.
Bought a car in 2025: Check if you qualify for the auto interest deduction.
Investors with gains + losers: Consider tax-loss harvesting before year-end.

And remember: December 31st isn’t a suggestion. It’s a hard stop.

Let’s Make Sure You Don’t Miss These

Until next time,

Dre Griggs, CFP®, MSAE

P.S. – Strong retirement plans are built from clear income data. Start with a retirement income fitness score today. You can go to obsidianwisdom.com/incomequiz. It’s absolutely free.

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