Crucial December Tax Deadlines for 2025

The December tax checklist highlights essential financial steps, including year-end tax strategies, tip reporting obligations, IRA withdrawals, and finalizing deductible payments for the 2025 tax year.

December 1 - Initiate Year-End Tax Planning

December is your last opportunity to implement tax strategies that can significantly influence your 2025 tax outcomes. Whether you’ve encountered income fluctuations, marital or dependent status changes, or property sales in 2025, it’s crucial to schedule a tax planning consultation to ensure optimal financial decisions.

December 10 - Submit Tip Reports to Employers

Employees earning tips must report any earnings exceeding $20 from November to their employer using IRS Form 4070 by December 10. Employers will withhold applicable FICA and income taxes from your wages. If these wages don’t cover the taxes due, the uncollected amount will be noted in box 8 of your W-2, requiring payment upon filing your annual return.

Image 3 December 31 - Deadline for Mandatory IRA Withdrawals

If you were born before January 1, 1952, ensure withdrawal from your Traditional IRA to avoid penalties. Those turning 73 in 2025 have the option to delay their distribution to April 1, 2026, if necessary. If your IRA institution won’t be operational on December 31, make arrangements to withdraw funds in advance.

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Image 1 December 31 - Final Day for 2025 Deductible Expenses

Ensure all deductible expenses earmarked for your 2025 return are paid by December 31 (excluding IRA, SEP, or Keogh contributions, which can be deferred). Consider the operational hours of financial institutions during this period to avoid any last-minute complications.

Consideration of Weekends & Holidays

If a deadline occurs on a weekend or holiday, it extends to the next business day.

Disaster Relief Extensions

Extensions apply in disaster-designated areas. To verify an area’s disaster status and related filing extensions, consult these resources: FEMA and IRS.

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