1. Catch up on every deduction
The cheapest tax move is claiming what you already spent. Make sure every business receipt is captured and categorized, and that your mileage log is complete at 72.5 cents per mile for 2026. Uncategorized receipts and untracked miles are pure lost deductions. This is the fastest win, and it costs nothing.
2. Fund a retirement plan
A SEP-IRA or Solo 401(k) can shelter a large share of net profit from income tax while you save for retirement. The Solo 401(k) generally must be established by December 31, though contributions can follow; SEP-IRA contributions can be made up to the filing deadline. This is often the single biggest lever for a profitable freelancer.
3. Time income and expenses
- If you expect a lower-income year next year, consider deferring December invoices to January.
- Prepay deductible expenses (software renewals, supplies, subscriptions) before December 31 to claim them this year.
- Buy and place needed business equipment in service before year end to deduct it, often in full under Section 179.
Only spend on what your business actually needs. A write-off returns a fraction of the cost, not the whole thing.
4. Square up your Q4 estimate
Check whether your quarterly estimated payments cover your year. The Q4 payment is due January 15, 2027. Paying enough during the year keeps you inside the safe harbor and avoids an underpayment penalty. Run the numbers with the quarterly tax calculator.
Close the year with every deduction captured. NeoReceipt keeps your receipts and mileage organized so year-end is a review, not a scramble.
Try NeoReceipt free5. Clean up the books before January
A little bookkeeping in December saves hours in April. Reconcile your income so your totals match what your 1099s will report, separate any personal charges that slipped onto a business card, and write off genuinely uncollectible invoices if you report on an accrual basis. If you paid any contractor $600 or more during the year, collect their W-9 now so you can issue a 1099-NEC on time in January.
This is also the moment to confirm your health coverage and any HSA contributions, since the self-employed health insurance deduction and HSA both reduce your taxable income and are easy to overlook once the year closes.
A word on timing income
Deferring income into January only helps if next year will be a lower-income year for you; if you expect to earn more, the opposite can be true, and pulling income into the current year may be smarter. The same logic applies to large purchases. Never spend money purely for the deduction, since a write-off returns only your marginal tax rate on the cost, not the whole amount. Let the business need drive the decision and let the tax benefit be the bonus.