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Essential December 2025 Tax Deadlines and Tips

This December, it’s crucial to focus on significant tax obligations that could influence your 2025 financial outcomes. Our reminders cover topics like strategic year-end planning, reporting tips, handling IRA withdrawals, and securing final deductible expenses for the year. Whether you're a business owner, self-employed, or an individual keen on optimizing your taxes, these insights are tailored to your needs.
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December 1 - Start Year-End Tax Planning

December is the last chance to implement strategies that can impact your 2025 tax liabilities. If you've experienced significant life changes such as income variations, changes in marital or dependent status, or property sales, schedule a tax-planning session with us to tailor your approach.

December 10 - Deadline for Tip Reporting

If you're employed in a role receiving tips and earned over $20 in tips for November, remember that by December 10, you need to report these to your employer using IRS Form 4070. Your employer will withhold FICA taxes and other withholdings from your pay. If your wages don't cover these taxes, the uncollected amount will be reported in Box 8 of your W-2. You'll need to reconcile these when filing your annual return.

December 31 - Mandatory IRA Withdrawals

For those born before January 1, 1952, December 31 is the final date for 2025 IRA withdrawals to avoid penalties. If you turned 73 in 2025, you can defer your first required distribution to April 1, 2026. Ensure arrangements are in place if financial institutions are closed on December 31.
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December 31 - Last Opportunity for 2025 Deductible Expenses

Ensure all deductible expenses for 2025 are completed by December 31 to reflect on this year's return. This excludes IRA, SEP, or Keogh contributions, which aren’t due until after December 31, 2025. Be proactive; account for any potential closures on December 31 by starting early to meet your financial goals.

Watch for Weekends & Holidays
If a deadline falls on a weekend or legal holiday, it automatically extends to the next business day. This is essential when planning your financial moves toward the end of the year.

Disaster Area Filing Extensions

For those in designated disaster areas, filing deadlines may be extended. For confirmation and details, visit FEMA and the IRS websites to ensure you're compliant with the latest requirements.
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