The holidays are just around the corner, and while I know you’re busy wrapping up the year (and maybe some actual presents), this is the perfect time to focus on a few smart financial moves. A little effort now could mean keeping more of your hard-earned money—and who wouldn’t want that?

As veterinarians, your schedules are demanding, and tax planning might not be at the top of your list. That’s why I recommend focusing on a few straightforward strategies that can make a big impact before Dec. 31.

1. Max Out Your Retirement Contributions 

One of the easiest ways to reduce your taxable income is by contributing to a retirement account. If you have a 401(k) or 403(b), I recommend reviewing how much you’ve contributed so far this year. The 2024 limit is $23,000, so there’s still time to bump up your contributions if you’re under the limit.

And if your employer offers a match, prioritize contributing enough to capture the full match—it’s essentially free money!

For those of you with side gig income, like relief shifts, I recommend looking into a Roth IRA or backdoor Roth IRA to maximize your tax-advantaged savings. These accounts can grow tax-free and are a fantastic way to set yourself up for a more secure financial future.

2. Deduct Work-Related Expenses

Veterinarians often face unique costs that many professionals don’t—think licensing fees, continuing education courses, or even some equipment or supplies. If you’re self-employed or do any contract work, these expenses could be tax-deductible.

I recommend keeping a detailed record of these expenses. Start now by organizing receipts and reviewing your purchases for the year. It’s a simple step that can save you time (and money) when it’s time to file your taxes.

3. Give Charitably and Strategically

If you’re planning to make any charitable donations, now’s the time to do it. Contributions made before Dec. 31 could qualify for a deduction, but I recommend being strategic about how you give.

Instead of cash, consider donating appreciated stocks. It’s a savvy move because you avoid paying capital gains taxes on the stock’s growth while still getting a deduction for the full value of the donation. Plus, the charity benefits just as much as if you’d given cash!

4. Offset Gains with Tax-Loss Harvesting

If your investment portfolio didn’t perform as well as you’d hoped this year, there’s still a silver lining. I recommend using a strategy called tax-loss harvesting, which lets you sell underperforming investments to offset gains elsewhere in your portfolio—or even up to $3,000 of your ordinary income.

Be careful, though, of the “wash sale rule.” It prevents you from buying back the same or a substantially identical investment within 30 days, which could invalidate the deduction. If this sounds complicated, don’t worry—that’s where I can help!

5. Check Your Withholding

Have you had a raise, taken on extra relief shifts, or started a side hustle this year? If so, your W-4 might not reflect your current income. I recommend taking a few minutes to review your withholdings to make sure they’re accurate.

It’s better to make adjustments now than to risk being surprised by an unexpected tax bill come April. Plus, correcting it now can help you avoid overpaying or underpaying.

6. Look Into State-Specific Opportunities

Depending on where you live, you might be eligible for state-level tax credits or deductions that are easy to overlook. I recommend checking if your state offers programs for things like student loan repayment, education savings plans, or tax credits for working in underserved areas.

Vehicle purchases often play a role in mobile or rural veterinary services. If the vehicle exceeds a gross weight of 6,000 pounds (e.g., SUVs or trucks commonly used for rural vet services), it may qualify for full depreciation in the year of purchase under current rules. This is a compelling option for veterinarians who need to manage large territories or farms. Be sure to check with your CPA concerning state-specific rules.

Why I Recommend These Moves

Making these adjustments now isn’t just about saving money on taxes—it’s about starting the new year with your finances in great shape. I know that year-end planning can feel overwhelming, especially with everything else you’ve got going on. That’s why I’m here to help you figure out what makes the most sense for your specific situation.

If any of these strategies resonate with you, let’s connect before the holiday rush. Together, we can check “tax planning” off your list so you can head into 2025 feeling confident and prepared.