As the year comes to a close, December is a critical time to review your finances and take advantage of tax-saving opportunities before December 31. Proactive year-end tax planning can help individuals and business owners in Conway and across South Carolina reduce their tax liability and start the new year with confidence.

At Peavy & Associates, we work closely with individuals and small businesses to identify smart, last-minute strategies that can still make a meaningful impact. Use this year-end tax planning checklist to ensure you’re financially prepared before the calendar turns.

1. Review Your Income & Deductions

Understanding where you stand financially is the foundation of effective tax planning. Reviewing income, expenses, and deductions now allows time to make strategic adjustments.

Key items to review:

• W-2 or 1099 income
• Business revenue and expenses
• Mortgage interest and property taxes
• Medical expenses and other itemized deductions

2. Maximize Retirement Contributions

Contributing to retirement accounts is one of the most effective ways to reduce taxable income while investing in your future.

Before December 31, consider:

• Maxing out IRA or Roth IRA contributions
• Increasing 401(k) contributions
• Reviewing SEP or Solo 401(k) options for self-employed individuals

3. Take Advantage of Charitable Giving

Charitable contributions may be tax-deductible if made by year-end. December is a great time to support causes you care about while also planning strategically.

Don’t forget to:

• Obtain proper documentation for donations
• Consider donating appreciated assets
• Review donor-advised fund options if applicable

4. Small Business Owners: Clean Up Your Books

For business owners in Conway and Horry County, December is the ideal time to ensure bookkeeping and records are accurate before tax season begins.

Important steps include:

• Reconciling bank and credit card accounts
• Reviewing payroll and contractor payments
• Preparing for 1099 filings
• Identifying deductible business expenses

5. Evaluate Equipment & Asset Purchases

Certain equipment and asset purchases may qualify for accelerated depreciation or immediate expensing, depending on your situation.

Planning ahead allows you to:

• Determine if purchases should be made before year-end
• Understand how depreciation impacts your tax return
• Align purchases with long-term business goals

6. Schedule a Year-End Tax Planning Meeting

Tax laws are complex, and every financial situation is unique. Meeting with a trusted accounting professional in December allows time to identify opportunities and avoid costly surprises in April.

Start the New Year Prepared with Peavy & Associates

Effective tax planning doesn’t happen during tax season—it happens before the year ends. At Peavy & Associates, we provide personalized tax and accounting services for individuals and businesses throughout Conway, South Carolina.

Schedule your year-end tax planning consultation today and take control of your financial future before December 31.

There are a number of ways that even the average taxpayer can utilize to reduce their taxable income, thereby mitigating their tax burden. Those methods are also available to lower income earners of less than $100,000 per year. The following are just a few of the ways that people can use to lower their taxable income.

Charitable Donations

Taxpayers will need to itemize deductions to take advantage of the credit if they contribute more than $300 in cash or goods. Those with cash donations of $300 or less can also claim the deduction.

Earned Income Credit

Even individuals that aren’t required to pay taxes may qualify for the earned income tax credit (EITC) worth a maximum of $6,660, providing they meet income limits and other criteria. It’s available for single people with no children and married couples with 3 or more children.

Education

Higher education costs can net individuals a $2,500 per person tax credit. Adults that return to school or training can receive a $2,000 credit per year.

Health Care

A flexible spending account (FSA) or health savings account (HSA) sets aside a portion of earnings for out-of-pocket health care expenses and the money is untaxable. FSA contributions are limited to $2,750 per year and HSA contributions are capped at $3,600 per individual.

Home Business

Anyone operating a business from their home can claim a deduction for a portion of their home used as their office, equipment and supplies. The deduction can also be beneficial for individuals that have a side-hustle or are working in the gig economy.’

Military

Active military and military reserve personnel can deduct moving costs associated with a change of duty station.

Mortgage Insurance

Premiums to private mortgage insurance companies can be deducted if deductions are itemized.

Retirement Savings

Employer-sponsored retirement plans such as 401(k) and 403(b) can contribute up to $19,500 and people over 50 can make catch-up contributions. The contributions are made before taxes and don’t count toward taxable income. An IRA serves the same purpose for those that are self-employed, though the contribution amounts are different.

Self-Employment

People that are self-employed can deduct 50 percent of the amount paid from income taxes to compensate them for paying the full amount for Social Security and Medicare taxes. Itemizing deductions isn’t required.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

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