As the year comes to a close, now is the ideal time to be proactive about your tax plans. You might be able to lower your taxes and keep more of your hard-earned money if you make smart moves before December 31. 

These tips will help you get the most out of your benefits and pay the least amount of tax possible at the end of the year. Talk to an accountant in Christiansburg, VA, for personalized help and expert tax advice to make sure you are getting all the tax breaks you are entitled to. 

Retirement accounts are a cornerstone of tax savings. 

Putting money into a retirement account helps you in two ways: it protects your future and lowers your current tax bill. You might want to put as much money as possible into your 401(k) or 403(b) retirement plan at work. Because these payments are taken out of your paycheck before taxes are taken out, your taxable income is smaller.

If you have not already, think about turning your standard IRA into a Roth IRA. While you may be able to reduce your contributions to a standard IRA, eligible withdrawals from these accounts are taxed as income when you leave. 

Roth IRA payments, on the other hand, are not tax-deductible at the time of the contribution, but approved Roth IRA withdrawals are usually tax-free in retirement. If you switch to a Roth IRA before the end of the year, you might be able to lock in the current tax rates and avoid having to pay higher taxes in retirement.

Strategic investing is a tax-advantaged approach. 

Smart investments can not only help you get richer, but they can also help you save money on taxes. You might want to buy municipal bonds. The interest you earn on them is usually not taxed by the federal government and is often not taxed by state and local governments either.

It can also be helpful to take advantage of long-term cash returns. Most of the time, taxes on long-term capital gains are cheaper than taxes on regular income. 

If you have items that have lost value, you might want to sell them to offset your capital gains and possibly lower your tax bill. You can lower your tax bill even more by deducting capital losses. 

Optimize income and expenses and know that timing is key. 

Putting off income until the next year can help you pay less in taxes in the future. If you can, think about waiting until January to give gifts or profits.

On the other hand, moving tax benefits up into this year can save you money right away. If you owe money on medical bills or donations to charities, you might want to pay them off before the end of the year so that you can deduct them from your tax return. 

Be aware of the power of charitable giving. 

Giving to charity not only helps good causes, but it can also help you save money on taxes. The IRS lets you give away a certain amount of money each year without having to pay gift tax. By using this yearly gift tax deduction in a smart way, you can give your loved ones money and maybe even lower your taxable assets. 

Seek professional guidance and take a proactive approach to tax planning. 

Talking to a tax expert can help you figure out how to use benefits and credits to lower your tax bill, make a long-term tax plan, and navigate the complicated tax rules. 

Tax tactics you use before the end of the year can lower your tax bill and help you keep more of your money. Tax-saving changes can be found by planning ahead. Talk to an expert in taxes for help.