3 Important Tax Moves to Make Before the End of the Year

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.


  • There are steps you can take to eke out tax savings.
  • Some of those steps have a deadline, so it's important to focus on them sooner rather than later.
  • It's time to add to your IRA and FSA, and check your FSA balance.

It pays to get moving on these.

At this stage of the year, many of us are busy enjoying the last days of summer, squeezing in a few extra beach outings, and gearing up for our kids to return to school. As such, many of us don't have taxes on the brain, and understandably so.

But while you don't have to stress out right now about filing your upcoming tax return, there are certain tax matters that could probably use your attention. Here are a few key tax moves to make before 2022 draws to a close.

1. Bump up your IRA contributions

You'll need money to pay your bills in retirement, and that's where the money in your IRA comes in. But if you're saving in a traditional IRA, you should also know that the more you contribute (up to the annual limit), the more you can lower your 2022 tax bill. As such, if you're not already close to maxing out your IRA for the year (which means contributing $6,000 if you're under 50 or $7,000 if you're 50 or older), now's a good time to start filtering more money into that account.

Granted, you still have a few months to max out your IRA. And you don't even have to finish contributing by December. IRAs actually allow you to make contributions for a given year up until its tax deadline. So if you want to max out your 2022 IRA, you technically have until April of 2023.

But you're better off not waiting to make those contributions, because then you might struggle to come up with that money. Instead, tweak your budget now so you're able to contribute steadily.

2. Fund your HSA if you haven't already

If you're enrolled in a high-deductible health insurance plan this year, you may be eligible for an HSA. And it pays to fund that account, even if you don't tend to spend a lot of money on healthcare expenses.

HSA funds never expire, and any money you don't withdraw can be invested for added growth. Contributing to an HSA now could set you up to more easily cover medical expenses in the future, when your bills might increase. Plus, like traditional IRAs, HSAs give you a tax break on the money you put in, so you can lower your 2022 tax bill by funding one.

3. Check your FSA balance

If you don't qualify for an HSA based on your health insurance plan, you may have enrolled in an FSA instead. FSAs also offer tax breaks on contributions. But unlike HSAs, you can't carry those funds forward beyond your plan year. That's why you should check your FSA balance pretty soon -- and make plans to use it up so you don't forfeit money.

Not sure how to spend that cash? Think about the medical expenses you incur regularly. Can you pre-pay for some, such as ordering bulk prescriptions or restocking your contact lenses? You still have a number of months to spend down your FSA, but the sooner you start strategizing in that regard, the less likely you'll be to lose your money.

Taxes are a part of life -- even when you're not busy filling out a return. Keep these moves on your radar to help ensure that you pay the IRS as little as possible, and that you fully benefit from the tax-advantaged accounts you have money in.

Alert: highest cash back card we've seen now has 0% intro APR until nearly 2025

If you're using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee. 

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes. 

Read our free review

Our Research Expert

Related Articles

View All Articles Learn More Link Arrow