December is the last month you can actually change your tax bill. Once January 1 hits, almost every lever is locked. Block two hours before year-end and run this checklist — it’s worth thousands.

Income & expenses

  • Defer income if you expect lower rates next year. Hold December invoices until January 1.
  • Accelerate expenses if you expect this year to be your higher year. Prepay January rent, software renewals, and supplies in December.
  • Buy needed equipment before December 31. Section 179 lets you deduct up to $1,160,000 in qualifying purchases the same year.

Retirement contributions

  • Max out SEP-IRA or Solo 401(k) contributions. Solo 401(k)s must be established by December 31, even if funded later.
  • Self-employed? You can contribute as both employer and employee — up to $69,000 combined for 2024.

Payroll & owner compensation

  • Confirm S-corp owners have taken a reasonable salary through payroll.
  • Issue any year-end bonuses before December 31.
  • Reimburse yourself for any business expenses paid personally (accountable plan).

Documentation

  • Collect W-9s from every contractor you’ve paid more than $600. You need them to issue 1099s in January.
  • Verify all employee addresses for W-2s.
  • Reconcile every bank, credit card, and loan account through December 31.

Charitable giving

  • Donate appreciated stock instead of cash to skip capital gains.
  • Bunch multiple years of giving into one year if you’re near the standard deduction threshold.

Big-picture moves

  • Review your entity structure. Is it still the right one?
  • Project next year’s income and adjust quarterly estimates.
  • Schedule a planning call with your Tax Professionals now, not in March.

The one habit that matters most

Don’t try to do this in a panic on December 30. Block the time in mid-December, work through the list, and walk into the new year knowing you didn’t leave money on the table.

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