End-of-Year Income Tax Checklist for the 2025 Tax Year

As 2025 comes to an end, it’s time for individuals and small business owners to get their finances in order for tax season, as they both benefit from proactive planning. By reviewing your end-of-year tax checklist now, you can reduce stress, minimize penalties, and maximize your refund in 2026.

Use this article to zero in on what should be included in your end-of-year tax checklist, key tax dates, and we address some of the most pressing questions related to your list. 

Do You Need to File Taxes?

Do you need to file taxes next year? Before engaging the services of a qualified virtual accounting firm, know that not everyone in the United States is actually required to file taxes each year. If you meet specific requirements, you might not be required to file a federal tax return.

Even if your income is below the threshold, you may still want to file to claim refundable credits like the Earned Income Tax Credit or Child Tax Credit.

End-of-Year Income Tax Checklist

Use this 2025 tax year checklist and year-end tax tips to support your end-of-year tax planning activities. 

1. Maximize Retirement Contributions

The first action to take on your end-of-year tax checklist is to maximize retirement contributions. Each year, you can reduce your taxable income by putting it directly into your retirement savings. You can maximize your retirement contributions, whether you have a Roth or traditional IRA, but you must do so before the end of the year. 

Here's what you should know for 2025: 

• 2025 IRA contribution limit: $7,500 (or $8,500 if age 50+).

• 401(k) contribution limit: $23,000 (or $30,500 with catch-up).

• Deadline: April 15, 2026 (tax filing day).

Timely contributions can reduce your 2025 taxable income and grow tax-deferred savings.

2. Maximize HSA Contributions

If you have a health savings account (HSA), you have a triple benefit opportunity. HSA contributions reduce your taxable income, any investment growth within the account is tax-free, and qualified withdrawals for medical expenses are tax-free.

These are the limits on tax-deductible HSA contributions in 2025:

• Individual: $4,300

• Family: $8,550

• Catch-up (age 55+): $1,000

3. Review Itemized Deductions vs. Standard Deduction

You will need to decide if you will itemize your deductions for 2025 or claim the standard deduction. A common strategy is to alternate each year, which lets you maximize your personal deductions by concentrating them in the same year. 

2025 Standard Deduction:

• Single: $14,300

• Married filing jointly: $28,600

• Head of household: $21,900

These considerations can help you retain a larger portion of your income. If your total deductions (mortgage interest, property taxes, medical costs, and charitable gifts) exceed your standard deduction, itemizing can reduce your taxable income. When it comes to charitable donations or medical expenses, bundling them into a single tax year can maximize their impact.

4. Contribute to 529 Plans

There’s still time to maximize your 529 plan contributions. These plans are designed to help families save money for future educational expenses. There are two state-level 529 plans: 

• An education savings plan

• Prepaid tuition

529 education savings plans grow tax-free when used for qualified expenses. You can contribute up to $18,000 per beneficiary in 2025 without triggering gift tax reporting.

Some states offer additional tax deductions or credits for 529 contributions. Check with your local authorities or state for details.  

5. Verify IRA Distributions (RMDs)

If you receive disbursements from an IRA or another fund, you should verify your distributions before the end of the year. You need to be sure you stay below the proper thresholds for the 2025 tax year.

Required Minimum Distributions (RMDs) apply if you turned 73 or older in 2025. The SECURE 2.0 Act extended the RMD start age to 73 and allows you to delay it to April 1 of the following year if it’s your first RMD.

It's essential to stay on top of your RMD, as missing it may result in a 25% excise tax. 

6. Record Business Tax Deductions

It's important to review all of your tax-deductible business expenses. If you’re a small business owner, then many of your costs can be claimed and deducted from your taxable income as long as they are ordinary and necessary.  

Keep precise records of all these possible expenses, and be sure to have the expenses themselves scheduled before the end of the year if you want to include them as you file your taxes in 2025. 

Potential 2025 tax deductions include: 

• Office expenses, supplies, and software subscriptions

• Vehicle mileage (IRS 2025 rate: 70 cents per mile)

• Payroll and contract labor

• Business meals and travel (50% deductible)

• Health insurance premiums

• Marketing, advertising, and digital subscriptions

• Rent, utilities, and internet for business use

7. Check Estimated Tax Payments

If you’re self-employed or run a small business, review your quarterly estimated tax payments. Your 2025 Q4 estimated tax payment is due on January 15, 2026. Other quarterly estimated tax due dates include April 15, June 15, and September 15 of each year. 

It's crucial to submit accurate payment estimates by each deadline. Paying enough estimated tax can help you avoid underpayment penalties.

8. Organize Tax Documents and Receipts

Organize all pertinent tax documents and receipts to support your 2026 small business tax prep activities. 

• W-2s, 1099s, bank statements, and business receipts

• Charitable donation confirmations

• Mortgage and investment statements

• HSA or IRA contribution records

Retain copies of all tax documents and receipts for at least three years. Scanned digital copies are the easiest and most efficient way to store this documentation. 

Key Tax Dates for the 2025 Tax Year

As the tax year comes to a close, keep these key dates in mind. These dates will help you stay ahead of the game and sail through the complex tax preparation process in early 2026.

Remember to plan ahead for holidays. The federal deadline can shift if April 15 falls on a weekend or a D.C. holiday.

Consult with a Professional Accountant

Getting ahead of tax season is the best way to minimize surprises and maximize savings. Whether you’re managing personal taxes or small business filings, 1-800Accountant, America's leading virtual accounting firm, can help you plan year-round, not just in April. Tax planning is a part of our suite of affordable, tax-deductible financial services. 

Schedule a free consultation with a small business expert today to learn how tax preparation, bookkeeping, and advisory support from our team of CPAs, EAs, bookkeepers, and tax professionals can help your operations grow. 

FAQs

1. What documents should I prepare for tax season?
Gather the following documents in preparation for tax season, including any of your W-2s, 1099s, receipts, bank statements, investment summaries, and deduction records.

2. Can I still make retirement contributions after year-end?
Yes, you can still make retirement contributions into 2026. IRA and HSA contributions can be made until tax day, April 15, 2026.

3. What happens if I miss the year-end deadline for deductions?
You can’t retroactively claim 2025 expenses on your 2026 return. Unlike retirement contributions, deductions are ineligible for anything after December 31, 2025. 

4. Should small business owners hire a tax pro?
While many small businesses tend to handle their own taxes early on as a cost-saving measure, it's best to hire a tax professional as soon as possible. CPAs can identify deductions, ensure compliance, and prevent penalties.

5. How can I prepare for next year’s taxes early?Prepare early for next year's taxes by setting up monthly bookkeeping and conducting quarterly reviews to stay organized throughout the year.