5 End of Summer Planning Tips to Help You Save at Tax Time

We all like the idea of saving money come tax time, but tax tips seem to only come at the end of the year, when everyone is scrambling to get a few more tax deductions before the year ends.

We’re going to change it up and provide five actions you can take right now that should make life easier and help boost your tax refund come tax time.

With a little planning and TurboTax help, it’s possible to start saving now on your taxes before filing season.

1. Plan Ahead

One of the best things you can do when it comes to tax planning is to look ahead. What expenses will you have for the year? What items can result in tax credits and deductions?

By looking ahead, you can get a solid idea of what you are eligible for and then plan your expenditures accordingly. It makes sense to be prepared rather than try desperately to find last-minute tax savings.

Are there charities you want to support but don’t have the cash on hand? Start saving today with the goal of making the contribution in December. You can take a tax deduction for non-cash and cash charitable contributions to an IRS-recognized nonprofit organization if you can claim itemized deductions like mortgage interest and property taxes. Even if you make your donation on December 31!

Under the new tax bill referred to as the One Big, Beautiful Bill, for tax year 2026 there is a new tax deduction for cash contributions up to $1,000 ($2,000 for married filing jointly) available if you don’t itemize your deductions.

Are you self-employed and thinking about purchasing that office equipment you’ve been procrastinating on purchasing? Start saving now! You can also purchase that equipment on December 31 and still take a business expense deduction on your taxes.  Under the new tax bill the amount that you can deduct for business property purchased in tax year 2025 was increased to $ 2.5 million.

 

What about making an extra mortgage payment (paying the January bill in December, thus enabling you to deduct the additional interest this year)?

If you are considering purchasing energy efficient improvements for your home like windows and doors or if you are in the market for an electric vehicle this would be a good time to make your purchases since this is the last year the credits will be available, under the One Big, Beautiful Bill.  You can purchase energy efficient improvements for your home until December 31, 2025 and you may be able to claim credits up to $1,200 for energy efficient windows and doors and up to $2,000 for heat pumps and bio mass stoves.

If you have been eyeing an electric vehicle, the timeline to purchase it and still be eligible for the EV credit is different from energy efficient home improvements.  You need to purchase the electric vehicle by September 30, 2025 and follow the other guidelines required in order to be eligible for a new EV credit up to $7,500 and a used EV credit up to $4,000.

2. Should You Be Itemizing Your Tax Deductions

For many taxpayers, itemizing tax deductions can be a way to reduce taxable income.

Itemization works when you have a number of tax deductions that qualify as itemized deductions that add up to more than the standard deduction, ($15,750 filing single for tax year 2025, $14,600 filing single for tax year 2024, $23,625 Head of Household for tax year 2025, $21,900 Head of Household for tax year 2024, $31,500 married filing jointly for tax year 2025, $29,200 married filing jointly for tax year 2024) which increased for inflation and provisions in the new tax bill.

Some eligible tax deductions include charitable contributions, mortgage interest, property taxes and a portion of medical expenses over a certain amount of your income.

TurboTax will help you decide which is more beneficial for you (the standard deduction or itemized deductions) based on your entries, but it’s helpful to start thinking about the tax deductions you may have now.

Start accumulating those receipts and amounts today so that you can save more money and have your information ready to go when you file your taxes.

3. Keep Good Records

When it comes to taxes, it helps to have your records all in one place so you don’t miss any tax deductions or credits. By keeping good records now, even if you haven’t in the past, you can save time at tax time.

4. Strategically Sell Your Investments

If you have investments that you want to sell, make sure you go about it in a strategic manner. When you sell an investment for a gain, remember you can reduce the amount that you have to pay in capital gains taxes by offsetting your gains with capital losses. If you have some losing investments that you want to get rid of, you can sell them and offset the losses against the gains. If you have a net loss, you can offset up to $3,000 in losses against regular income like wages and any loss left will carry over to next year. You can use our Capital Gains Tax Calculator to estimate your capital gains/losses, capital gains tax, and compare short-term vs. long-term capital gain if you’ve already sold or are considering selling (Note, this calculator has been updated to tax year 2024. Tax year 2025 updates coming soon).

Finally, consider donating appreciated stock instead of cashing it out if your financial situation permits and you can claim itemized deductions. When you donate appreciated stock directly to an IRS recognized 501(c)(3) charitable organization, you can take a deduction for the fair market value of the donated stock and avoid the capital gains tax you would have paid if you sold the stock and then donated the proceeds.

 

5. Be Aware of Tax Benefits for Your Kids

 If you took your kids to summer day camp or even sports camp so you could work, all is not lost. Camps are expensive, but you can take the Child and Dependent Care Credit worth up to $1,050 for one child and worth up to $2,100 for two or more children under 13 and no age limit if they are disabled. Sorry overnight camps do not qualify.

Looking further ahead, beginning in tax year 2026, the Child and Dependent Care Credit increases to 50% of your expenses up to $3,000 ($1,500) for one child and 50% of your expenses up to $6,000 ($3,000) for two or more kids, under the One Big, Beautiful Bill. There are also other tax benefits when you have dependent kids, like the Earned Income Tax Credit worth up to $8,046 in tax year 2025 ($7,830 in tax year 2024) for three or more kids.

The Child Tax Credit is another credit available for each dependent child you have under 17 and was increased from $2,000 to $2,200 for tax year 2025, under the new tax bill. The credit amounts begin to phase out when your modified adjusted gross income (MAGI) exceeds $200,000 ($400,000 for those married filing jointly). Under the new provision, parents claiming the credit and their children are required to have a social security number.

TurboTax Has You Covered

Don’t worry about knowing these tax rules. Meet with a TurboTax expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Live Full Service today, in English or Spanish, and get your taxes done and off your mind.