If you expect a decrease in income next year, accelerating deductions into the current year can offset the higher income this year. Some options include:
1) Prepaying property taxes in December.
2) Making January mortgage payment in December.
3) If you owe state income taxes, making up any shortfall in December rather than waiting until the return is due.
4) Since medical expenses are deductible only to the extent they exceed 10 percent (7.5 percent for individuals age 65 before the end of the year) of adjusted gross income, bunching large medical bills not covered by insurance into one year to help overcome this threshold.
5) Making any large charitable contributions in 2016, rather than 2017.
6) Selling some or all loss stocks.
7) If you qualify for a health savings account, setting one up and making the maximum contribution allowable.