Mastering Year-End Tax Planning: Essential Strategies for California Families – Part 2

Additional year-end tax planning strategies

Additional Year-End Tax Planning Strategies

Last week, we explored how to cut your 2023 tax bill, covering topics ranging from tax withholdings to medical planning. If you missed Part One, read it here to make the most of your taxes. Now, we’ll discuss additional year-end tax planning strategies.

Make Charitable Gifts: Giving That Gives Back

Consider this—the 2023 standard deduction is $12,950 for individuals and $25,900 for married couples filing jointly. If your family’s deductions approach the 2023 standard—$12,950 for individuals or $25,900 for joint filers—consider charitable giving. Not only are you doing good, but you also get to itemize these deductions, further reducing your taxable income.

In a recent NPR report, charitable giving significantly increased during the pandemic, emphasizing the impact of personal contributions. But, remember to keep a detailed record of your donations, which should include receipts and acknowledgments from the charities involved.

Consider Tax-Loss Harvesting: Turning Loss into Opportunity

CNBC reports that smart investors use tax-loss harvesting to offset capital gains by selling underperforming assets. This technique allows you to use the capital loss to balance out gains from thriving investments. Individual filers can offset up to $1,500, while joint filers can go up to $3,000.

Consult a financial advisor for the nuances of tax-loss harvesting to align it with your broader financial goals.

Pay Your January Mortgage Payment in December: A Month Ahead, A Deduction Extra

Make your January mortgage payment in December to claim an extra month of deductible interest for 2023. But proceed with caution—a Bankrate report advises consulting your mortgage lender to ensure the extra payment is correctly applied.

Max Out Your IRA or Roth IRA: Planning for a Tax-Friendly Retirement

For 2023, the max IRA contribution is $6,500, or $7,500 if you’re over 50. Forbes cites that traditional IRAs often offer tax deferral, while Roth IRAs promise tax-free withdrawals during retirement.

Understanding each IRA type helps tailor decisions to your long-term financial objectives.

The Foundation of Life-Long Support and Security

Proactive year-end tax planning significantly impacts your overall financial health. Implementing these tax-saving strategies can keep more money in your account, paving the way for a brighter financial tomorrow. However, great financial management is just a piece of the puzzle in building a life and legacy for your family’s long-term support.

Contact us for a free discovery session. We’re committed to guiding you through comprehensive, heart-led estate planning to protect your family and assets.


This article is a service of the Law Office of Aisha M. Williams, APC, serving San Diego, Carlsbad, Escondido, and all of California. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love. That’s why we’ll start you with a  Family Wealth Planning Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.d