Hey Lykkers! As the year starts to wind down and holiday lights go up, is "tax planning" the last thing on your mind? You're not alone. But what if I told you that the most powerful time to shrink your tax bill isn't in April—it's right now, in these final weeks of December?

Think of it this way: once the clock strikes midnight on New Year's Eve, the door slams shut on a whole set of financial opportunities. The moves you make (or don't make) in the next 60 days can directly determine whether you send a bigger check to the government or keep more of your hard-earned money in your pocket. Let's turn that panic into a plan with a clear, actionable checklist.

The Golden Rule: Defer Income, Accelerate Deductions

The core strategy for most individuals is simple: postpone taxable income into the next year and pull eligible deductions into the current year.

This lowers your taxable income for the now. "Year-end planning is about controlling what you can control," says Lisa Greene-Lewis, a CPA and tax expert with TurboTax. "You can't control tax rates, but you can often control the timing of your income and expenses to your advantage" (TurboTax).

Your 60-Day Checklist: The "Must-Do" Items

This is your biggest lever. If you have a 401(k), 403(b), or similar retirement plan at work, increase your contributions to hit the annual limit. For 2024, that's $23,000 ($30,500 if you're 50+). Every dollar you contribute reduces your taxable income right now. Don't forget Health Savings Accounts (HSAs) if you have a high-deductible health plan—they offer a rare triple tax advantage.

2. Harness "Bunching" for Charitable Deductions

If your total deductions hover near the standard deduction amount, "bunching" can be a game-changer. Instead of giving $2,000 to charity each year, you'd give $4,000 every other year. This allows you to itemize deductions in the "bunching" year and take the standard deduction the next. "Bunching charitable contributions is one of the smartest strategies for retirees and near-retirees who don't have a mortgage," advises Michael Kitces, a renowned financial planning strategist (Kitces.com).

3. Consider Tax-Loss Harvesting in Taxable Accounts

This sounds complex but is straightforward. Look at your investment portfolio. Are there holdings that are down? You can sell them to realize a capital loss, which can then offset any capital gains you've realized during the year. If your losses exceed your gains, you can use up to $3,000 to offset ordinary income. A critical warning: be mindful of the "wash-sale rule," which disallows the loss if you buy a "substantially identical" asset 30 days before or after the sale.

4. Defer a Bonus or Invoices (If Possible)

If you're due a year-end bonus or have the flexibility as a freelancer, see if you can arrange to receive that payment in early January. This pushes that income into next year's tax return.

Self-employed? Pre-pay upcoming business expenses or make your Q1 estimated tax payment in December. A homeowner? See if you can make your January mortgage payment in December to get an extra month of mortgage interest added to this year's deduction.

The "Do Not Touch" Zone

While you're optimizing, remember this cardinal rule from Ed Slott, CPA and IRA expert: "Never let the tax tail wag the investment dog." (IRAHelp.com). Don't sell a stock you strongly believe in just for a tax loss. Don't make a poor charitable gift just for a deduction. The primary goal is still smart financial management; tax efficiency is a powerful layer on top of that.

Lykkers, the next two months are your strategic window. Grab your financial statements, review this list, and take control. A little effort now can lead to a much more pleasant surprise when you finally sit down to file.