If you’re a parent, October and November probably mean Halloween costumes, fall festivals, and a calendar that’s starting to look like a game of Tetris. But between the pumpkin patches and Thanksgiving prep, there’s something else worth squeezing in before the year ends—your family’s tax plan.
Because here’s the truth: the financial decisions you make right now can have a direct impact on how much you pay (or save) when tax season rolls around. And while most people don’t think about taxes until April, families who take a few smart steps in the fall often end up keeping more of their hard-earned money.
Let’s look at a few year-end moves you can still make in October and November to strengthen your family’s financial health and set yourself up for a smoother, cheaper tax season.
1. Maximize Contributions to Tax-Advantaged Accounts
Think of your retirement and savings accounts like buckets—some of them have lids that keep the IRS from dipping in. The more you can fill before December 31, the less taxable income you’ll show.
If your family budget allows, consider topping off your:
401(k) or 403(b)
These accounts are offered through your employer and are one of the easiest ways to reduce your taxable income. Every extra dollar you contribute before December 31 lowers what you’ll owe in taxes. If you can increase your contribution rate even a little, do it—especially if your employer matches a portion. That’s free money for your future self.
According to the IRS contribution limits, the 2025 max contribution for a 401(k) is $23,000, or $30,500 if you’re over 50.
IRAs and Roth IRAs
Even if you don’t have access to a 401(k), an Individual Retirement Account (IRA) can be a great tool. You have until April 2026 to make 2025 contributions, but starting now gives your money more time to grow.
A Roth IRA, in particular, can double as a backup education fund—since contributions (not earnings) can be withdrawn tax-free for things like college expenses. For families thinking long-term, it’s one of the most flexible ways to invest.
2. Use Up Flexible Spending Accounts (FSAs) and Dependent Care FSAs
Many parents leave money on the table each year because they forget about their FSAs. These accounts let you set aside pre-tax dollars for healthcare or dependent care expenses—but they often expire at the end of the year.
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Health FSAs: If you’ve got money sitting unused, now’s the time to schedule doctor visits, refill prescriptions, or even buy eligible items like glasses or first aid supplies.
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Dependent Care FSAs: If your kids go to daycare, after-school care, or summer camp, you can use this money for qualified expenses—but only if you spend it before the deadline.
Some employers offer a small rollover amount or grace period, but not all. Check your plan rules now, so you don’t lose hard-earned cash.
3. Harvest Tax Losses in Your Investment Accounts
If you have an investment account—even a small one—year-end is the time to take a look at your performance. Not every stock or fund is going to be a winner, and that’s okay.
Tax-loss harvesting means selling investments that have dropped in value to offset capital gains from your winners. It’s a smart way to reduce taxable income without changing your long-term investment strategy.
For example, let’s say you sold one stock and made a $2,000 profit but another stock dropped by $2,000. Selling both means you can use the loss to cancel out the gain—reducing your tax bill.
It’s a common strategy used by financial advisors and platforms like Betterment or Schwab, but families can apply it, too. For a deeper dive, check out Investopedia’s explanation of tax-loss harvesting.
4. Make Charitable Giving Part of Your Year-End Plan
Families tend to give more around the holidays—but did you know timing your generosity strategically can also help with taxes?
Bunching Donations
If you typically give a few hundred dollars a year, consider “bunching” two years’ worth of donations into this year. By doing so, you may exceed the standard deduction threshold and qualify to itemize, maximizing your tax benefit.
Donor-Advised Funds (DAFs)
If you’d like to give but aren’t sure which charity yet, you can contribute to a DAF before year-end and decide later. You get the deduction this year, and the money stays available for future gifts.
Don’t forget to gather receipts for all donations—cash, non-cash, or volunteer mileage. Even small acts of generosity can add up when it’s time to file. For IRS-approved giving rules, see the Charitable Contributions Guide.
5. Review Education Credits and 529 Plans
If you’ve paid tuition this year—whether for yourself, a spouse, or your kids—don’t overlook education-related tax credits.
American Opportunity Credit (AOC)
Worth up to $2,500 per eligible student, this credit helps offset undergraduate education costs for the first four years.
Lifetime Learning Credit (LLC)
This credit provides up to $2,000 per tax return for tuition and fees at eligible institutions. It’s great for continuing education or graduate programs.
And if you’re saving for your child’s future, remember that 529 plans grow tax-free when used for qualified education expenses. Many states even offer tax deductions or credits for contributions. You can compare your state’s benefits at Savingforcollege.com.
Even a small deposit in a 529 before December 31 can be a step toward future tuition—and might lower your state taxes, too.
6. Plan for Medical Expenses and Health Savings Account (HSA) Contributions
A Health Savings Account (HSA) is one of the most powerful savings tools out there—if you’re enrolled in a high-deductible health plan.
Here’s why:
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Contributions are tax-deductible
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Growth is tax-free
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Withdrawals for medical expenses are tax-free
That’s the triple advantage. If you haven’t maxed yours out, consider making an extra contribution before the deadline.
The 2025 contribution limits are $4,300 for individuals and $8,550 for families.
Even if you don’t use all the money right away, you can treat your HSA like a long-term investment—saving for future healthcare costs in retirement.
7. Review Work-Related and Side-Hustle Deductions
Parents today are more entrepreneurial than ever. Whether you’re selling crafts online, teaching music lessons, or running a consulting business, your side hustle can come with valuable deductions.
Track every expense—software subscriptions, marketing costs, supplies, or even part of your phone bill. The IRS allows you to deduct ordinary and necessary expenses that directly support your business.
If you work from home, you might also qualify for a home office deduction, as long as the space is used exclusively for work.
And don’t forget: teachers and educators can deduct up to $300 in classroom expenses, even if they don’t itemize.
For guidance, visit IRS Business Expenses.
8. Consider Family Gifting Strategies
Year-end is also a great time to make strategic gifts—especially if you’re looking to help your children or grandchildren build financial momentum.
In 2025, you can give up to $18,000 per recipient without triggering the federal gift tax. That means parents and grandparents can each gift $18,000 per child—a simple way to seed a 529 plan, contribute to a Roth IRA for a working teen, or just help them start investing early.
It’s a smart way to reduce future estate taxes while teaching kids about money in a meaningful way.
9. Recheck Your Withholding and Estimated Payments
Even if you’ve been getting by with your current paycheck setup, it’s worth double-checking your withholding before the year ends. If you received a large refund last year, you might be giving the government an interest-free loan. If you owed money, you might want to adjust to avoid penalties.
Use the IRS Tax Withholding Estimator to see where you stand. It takes just a few minutes, and you can update your W-4 form with your employer before December 31 if needed.
For those who are self-employed, review your quarterly estimated tax payments to avoid underpayment penalties. Paying a little extra now can save you from surprises later.
The Big Picture: Taxes Are About More Than Numbers
Most parents don’t have time to become tax experts—and you don’t need to. You just need a plan.
The beauty of year-end planning is that it’s not just about saving money—it’s about being intentional. Every decision you make today helps shape the financial future you’re building for your family.
So, take a Saturday morning to sit down with your spouse, a cup of coffee, and your favorite budgeting app. Look at where you stand, what’s left in your accounts, and which of these moves you can act on now.
A few hours of planning today could mean hundreds—or even thousands—of dollars saved by next spring.