Q3 Tax Planning Tips to Lower Your 2025 Tax Bill
Monday, September 08, 2025
As we move into the second half of the year, Q3 is the perfect time to get proactive about tax planning. Waiting until December to think about deductions or strategy leaves little to no room for adjustment. The good news is that there is still plenty you can do now to reduce your 2025 tax bill and put your business in a stronger financial position before year-end.
At J&S Accounting, we believe smart tax planning starts with small, intentional steps. Here are a few strategies you can implement this quarter to stay ahead.
Review Year-to-Date Financials
Start with a mid-year check-in. Pull up your profit and loss statement and compare it to this time last year. Are your revenues up? Are expenses running higher or lower than expected?
Use this information to:
- Project year-end income and tax liability
- Adjust estimated tax payments
- Spot areas where you may be able to increase deductions
If you’ve had a profitable first half, now is the time to look at ways to reduce taxable income strategically.
One of the most powerful tools for tax savings is contributing to retirement accounts. Whether you’re a sole proprietor or have employees, review your options:
Maximize Retirement Contributions
- Solo 401(k), SEP IRA, or SIMPLE IRA contributions can lower your taxable income
- Adjust estimated tax payments
- Spot areas where you may be able to increase deductions
Time Major Purchases Strategically
Thinking of buying new equipment, computers, or a company vehicle? Q3 is a good time to assess whether to make those purchases this year or wait until 2026.
- Take advantage of Section 179 and bonus depreciation where eligible
- Align purchases with your cash flow to avoid year-end stress
- Keep documentation organized for easy deduction reporting
Evaluate Payroll and Contractor Payments
Take a close look at how you're compensating your team. Are you tracking payroll expenses correctly? Are your 1099 contractors truly classified appropriately?
Misclassification or missed payroll filings can trigger costly penalties. Use this time to:
- Reconcile payroll records
- Review contractor agreements
- Verify proper tax withholding and reporting processes
Plan for Tax Credits and Deductions
There are several valuable tax credits and deductions that may apply to your business depending on your industry, size, and structure. Some of the most overlooked include:
- R&D Tax Credit (even for small tech or service firms)
- Qualified Business Income Deduction
- Work Opportunity Tax Credit
- Home Office Deduction for eligible business owners
A tax planning session in Q3 gives you time to identify and apply these savings before the end of the year. Contact your tax professional to stay proactive!
About J&S Accounting
At J&S Accounting, we provide expert bookkeeping services tailored to the unique needs of small businesses and non-profits. We recognize the challenges that come with maintaining accurate financial records and how vital this is for the smooth operation and growth of your business. As a woman and minority-owned firm, we’re proud to offer our expertise to businesses in Savannah, GA, and across the nation, helping them navigate financial complexities and achieve better financial management.
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Disclaimer:This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business from a professional accountant. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. J&S Accounting does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. J&S Accounting does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.
© 2023 J&S Accounting. All Rights Reserved.
Disclaimer
This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business from a professional accountant. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. J&S Accounting does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. J&S Accounting does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.