Worried about taxes? It's not too late to cut what you owe the government.

I ran TurboTax for 10 years. We helped millions of people save hundreds of dollars when they filed their taxes by April 15. But if they had acted before the end of the year, they could have saved thousands in federal, state and local income taxes.

There is still time left in 2023 to save money and get ahead of tax season. Here are a few smart tax strategies to embrace now:

Sell your losers. Before the year ends, take a few minutes to review your stock portfolio's performance to gauge its potential impact on your taxes. 

The price of every security – stocks, bonds, mutual funds and exchange-traded funds – fluctuates with the market. When the market price is above the price you paid (your cost basis), you have an unrealized capital gain. When it is lower, you have an unrealized capital loss. This is important because when you sell stocks and investments at a price higher than you purchased them initially, you realize a capital gain, possibly incurring taxes on your earnings. 

“Unrealized” means that you have not sold the security, so the potential tax gain or loss is not yet recognized for tax purposes. You don’t pay tax on unrealized capital gain or loss. When you sell, the gain or loss becomes “realized” and it is then recognized for tax purposes.

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There are many reasons to sell or not sell a security but, if the only consideration is taxes, it is clear: Sell your losers and don’t sell your winners. However, once you have sold some losers, you can then sell winners without paying tax because capital gains and capital losses offset each other.

If you have more losses than gains this year, you can carry the net loss forward to the next tax year. (In this case, don’t use it but don’t lose it.)

If you still want to hold the stock you sold at a loss, you can buy it back 31 days later and still recognize the tax loss. But if you buy it back within 30 days, it is considered a “wash sale” and the tax loss is deferred. This can be an issue for active or day traders who buy and sell frequently.

Frequent trading generates short-term gains, which are taxed at much higher “ordinary income” rates. After taxes, frequent traders are more likely to underperform the market than strike it rich.

Max out your retirement contributions

Optimize your retirement accounts for tax breaks. Whether you're just starting your career or closing in on retirement, a swift December 2023 review of your retirement strategy is a must. Workplace retirement plans, like the 401(k), offer potential savings that are just sitting there for the taking. Don't leave money on the table − maximize your contributions to capitalize on your employer's 401(k) match ASAP.

An employer match is free money, so why not max it out for the year?Similarly, leverage the $6,500 contribution limit for your individual retirement account to hit the max and slash real money from your taxes. Sure, the deadline extends until April 15, but why procrastinate?

While it can feel like siphoning a hard-earned paycheck biweekly or monthly, setting yourself to max the contribution limit will pay dividends that you’ll see shortly after April and, with strategic planning, after every April until your actual retirement.

Maxing out your 401(k), generating the highest employer match possible and funding your IRA all account for real, tax-advantaged savings that lay the groundwork for a sturdy financial future.

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Embrace the holiday spirit with tax-free gifting strategies. Each tax year, each parent can give $17,000 to each child tax free. For two parents with three kids, that is a total tax-free gifting opportunity of $108,000. But they must deposit the check before the end of the year.

In other words, there’s still time in December to slash taxes while helping your family build and maintain wealth. Parents can open custodial accounts, such as UTMA or UGMA accounts, for their children to accumulate cash gifts. While the custodian controls the assets when the child is young, legal control transfers to the child between 18 and 25. 

Pay attention to state tax rules

Look ahead to 2024 with purpose and intent. Taking steps to slash taxes before the end of the year is not as simple as preparing for the federal tax filing season. State tax rules and nuances can complicate or confuse even the most savvy taxpayer.

Regardless of where you live, it’s important to know and take away that the pathway to savings can look slightly different in every state.

For example, a single filer with a $250,000 income in New York can save $5,160 for every $10,000 reduction of taxable investment income.

That number is different in Portland, Oregon, where the total tax rate is a staggering 54.7%. 

Making tax-slashing moves before Friday (the last business day of 2023) will help you owe less in taxes at federal, state and, in some cases, local levels while maximizing the benefits already available to you.

But before you set your resolutions for 2024 on Jan. 1, take the initiative to retain more of your hard-earned money and allow it to contribute to your financial goals actively. By taking action in the remaining days of December, you can seize the opportunity to enter 2024 with a sense of empowerment rather than fear.

Bill Harris is the founder of Evergreen Money and a former CEO of TurboTax.