(Sing to the tune of “Let It Snow”)
Oh, the weather outside is frightful, but tax planning is so delightful.
But because The BIF Crew loves you so… we’re sharing our handy end-of-year tax checklist!
Below is our easy-to-follow rundown of what you and your clients need to do before December 31 and April 15 to reduce your clients’ tax burden and help them get closer to achieving their financial goals.
Some of these steps may seem obvious, especially if you've been doing this for a while. But even airline pilots have "turn the engine on" in their checklists! When things get busy at the end of the year, a simple nudge can help make sure nothing slips through the cracks.
Many provisions in the One Big Beautiful Bill Act go into effect for the 2025 tax year, like the Roth catch-up contribution change and the expansion of overtime and tip exclusions, and these may impact your clients. Review the One Big Beautiful Bill Act to know what’s relevant for the 2025 tax year and pinpoint how those provisions will impact your clients.
BIF Pro Tip: Read our guide to the OBBBA to see how it will affect your clients.
Begin your year-end process with a thorough check-in so you can line up your next steps with what’s actually happening in your clients’ lives. Check in with your clients, whether in-person, by phone, or just send them an email! Be sure to ask about the following topics:
BIF Pro Tip: You don’t need to interrogate your clients! A simple “What’s new? Any big life changes or money surprises this year?” can prompt an essential update.
These are the tasks you'll need to complete by December 31
Your clients need to take their RMDs by December 31 to avoid a penalty of up to 25%. Double-check each client’s account and confirm distributions are processed accurately and on time. Remember that first-year RMDs can be delayed until April 1 the following year, though your clients would then need to take two distributions in that year.
Review your clients’ contribution rates. Can they afford to max out their 401(k) or 403(b)? If they’re 50 or over, encourage them to make “catch-up” contributions. Remind them that while Roth IRA contributions aren’t deductible now, they offer tax-free growth and withdrawals in retirement.
BIF Pro Tip: Thanks to the One Big Beautiful Bill Act, all catch-up contributions for those earning over $145,000 must now be made on a Roth basis. This means no upfront tax deduction, but tax-free withdrawals later. Make sure your higher-earning clients are aware of this switch.
Tax-loss harvesting is the art of selling investments at a loss to offset capital gains realized from selling winners. Go through your clients’ taxable brokerage accounts for investments that are in the red. You can use those losses to cancel out capital gains. If the losses exceed the gains, your client can use up to $3,000 to offset ordinary income (like their salary), which is a fantastic deal.
BIF Pro Tip: Don’t forget the “Wash Sale” rule. You can’t sell a security for a loss and then buy it—or a “substantially identical” one—back within 30 days. It’s the IRS’s way of saying, “No take-backsies.” Also, make sure they haven't purchased another substantially identical security 30 days prior as the Wash Sale rule is also backwards looking!
It’s not just the season for giving; it’s also the last chance for your clients to take advantage of charitable contribution deductions. Talk to clients about their philanthropic goals. They can donate cash, but donating appreciated stock held for more than a year is often a better move. Why? They can typically deduct the full fair market value of the stock and avoid paying capital gains tax on the appreciation. It’s a powerful one-two punch of doing good and saving money.
BIF Pro Tip: For clients using a Donor-Advised Fund (DAF), remind them that while they get the tax deduction in the year they contribute to the DAF, the funds must be in the account by December 31.
For the 2025 tax year, your clients can gift up to $19,000 to as many people as they want without having to file a gift tax return. Identify clients who want to reduce the size of their taxable estate and discuss this as a simple, effective way to transfer wealth. A married couple can combine their exclusions and give up to $38,000 to each recipient.
For clients with kids or grandkids heading to college, contributions to 529 plans may be eligible for a state income tax deduction or credit. Be sure to check state-specific deadlines as some cut off contributions on December 31, while others are extended until April 15.
Even when 2025 ends, tax planning doesn’t. Now it’s time to gather the documents, make final contributions, and make sure everything is filed perfectly.
While the 401(k) deadline was December 31, your clients get a little extra time for IRAs and Health Savings Accounts (HSAs). They have until April 15 to contribute for the previous year. Once you have a clearer picture of their total income for the year, you can determine if they should make a last-minute contribution to a Traditional IRA for a tax deduction or a Roth IRA for tax-free growth. Don’t forget the HSA—it’s a triple-tax-advantaged account.
It’s time to herd the cats: W-2s, 1099s, 1098-Ts, mortgage interest statements, property tax records, receipts for charitable donations… you know the drill. Provide clients with a checklist of common tax documents and encourage them to start keeping them in a digital or physical folder as documents start arriving in January and February.
You’re coming into the home stretch. Whether you prepare returns yourself or coordinate with a CPA, your job is to ensure accuracy and look for any last-minute opportunities. Be sure to double-check everything. Did all deductions and credits get applied correctly? Were all income sources reported? A thorough review can prevent costly errors and dreaded letters from the IRS. Once you’re confident, give the green light to file—and of course, make sure it’s done on time to avoid penalties.
By breaking down the process and tackling it in these two stages, you can transform tax season from a source of stress into an opportunity for strategic financial planning.
As you close out 2025, it’s time to look ahead to 2026. If you’re ready to become a CFP® professional, BIF can help you earn your marks in less than a year with affordable, flexible CFP® Education programs and streamlined, effective CFP® Exam Prep through The BIF Review.
Ready to take your career to the next level in 2026? Becoming a CFP® professional leads to career growth, higher earning potential, and—best of all—builds your financial planning skills and knowledge so you stand out as a trusted financial expert. With BIF’s affordable, flexible CFP® Education and streamlined CFP® Exam prep, you can earn your marks in under a year!
Take the first step today: Connect with a Student Advisor to see how we can help you achieve your career goals!