Year-end tax planning was already complicated before this year. But the new tax law—the One Big Beautiful Bill Act (OBBBA)— adds a few extra twists and turns. Taking that into account, following are seven common tax strategies for individual taxpayers.

  1. Charitable donations: If you itemize deductions, you can boost your charitable write-off by donating to qualified charitable organizations at year-end. For 2025, the current deduction for monetary gifts is limited to 60% of your adjusted gross income (AGI). New rules: Under the OBBBA, you must first clear a floor of 0.5% of adjusted gross income (AGI), beginning in 2026. But the new law also authorizes a deduction in 2026 of up to $1,000 for single filers who do not itemize and $2,000 for joint filers. Plan accordingly.
  2. Capital gains and losses: Frequently, investors are able to use capital gains and losses to offset each other. For example, you might realize capital gains late in the year from sales of securities to absorb capital losses from earlier in the year or realize losses to offset capital gains plus up to $3,000 of ordinary income in 2025. Note: The maximum tax rate on long-term capital gain for assets held longer than a year is 15% (20% for certain high-income taxpayers).
  3. Auto loan interest: Personal interest, like interest paid on most credit card debt, is nondeductible. But the OBBBA creates a brand-new deduction for some car buyers. For 2025 through 2028, you can deduct up to $10,000 of annual interest paid on auto loans. This tax break is retroactive to January 1, 2025, and is available whether or not you itemize. Caveat: The deduction of auto loan interest begins to phase out for single filers with a modified adjusted gross income (MAGI) above $100,000 and $200,000 of MAGI for joint filers.
  4. Home energy credits: Recent legislation expanded two residential energy credits. Generally, you may qualify for a 30% “residential clean energy credit” for installing solar panels or other equipment to harness renewable energy this year. Also, a 30% “energy efficient home improvement credit” of up to $1,200 is available for the cost of qualified energy-efficient improvements, subject to certain dollar caps. Warning: The OBBBA eliminates these credits after 2025—act now or never!
  5. Alternative minimum tax: Taxpayers may have to pay the “alternative minimum tax” (AMT) instead of their regular tax liability. The AMT calculation involves certain “tax preference” items, tax adjustments and an exemption amount subject to a phase-out. Now the OBBBA permanently establishes favorable exemption amounts of $500,000 for single filers and $1 million for joint filers for 2026 and thereafter, with future indexing, but phases out the exemption twice as fast as before. Have your AMT exposure assessed to determine the best moves for your situation.
  6. Medical expenses: An itemizer can deduct unreimbursed medical expenses above an annual threshold of 7.5% of AGI. Thus, if you are close to or are already over this threshold for 2025, you might accelerate non-emergency expenses, such as medical check-ups or dental cleanings, from 2026 into 2025. Note that qualified expenses paid on behalf a dependent relative may count toward the 7.5%-of-AGI threshold.
  7. Required minimum distributions: Under current law, if you have reached age 73 (increasing to age 75 in 2033) you must take annual required minimum distributions (RMDs) from traditional IRAs and qualified plans like a 401(k). Otherwise, you may be hit with a 25% tax penalty in addition to regular income tax liability (10% if corrected promptly). Be aware that other special rules apply to non-spouse IRA and qualified plan beneficiaries.

Of course, these are just seven potential tax ideas to consider as the year draws to a close. Contact your JMF professional advisor regarding your personal situation.