With approximately 100 days left in 2026, this is a practical time to review your tax position before the filing season begins. A few thoughtful steps during the final months of the year may affect your tax result, support healthier cash flow, and reduce the chance of an unexpected balance due.
At Hillin & Company, PC, we encourage taxpayers to look at year-end tax planning before December 31 rather than waiting until it is time to prepare a return. Changes in income, retirement saving, side work, investments, or personal circumstances can all influence the tax picture for the year.
Year-end planning does not need to feel overwhelming. Reviewing a handful of important items now can clarify where you stand and reveal opportunities worth considering before 2026 ends.
Check Your Withholding and Estimated Tax Payments
Reviewing tax withholding and estimated payments is an essential part of 2026 year-end tax planning. The amounts paid throughout the year should reasonably reflect the income and tax liability you expect for the year.
Many events can change that calculation. Starting a new job, earning additional income, selling investments, operating a side business, or experiencing a significant personal change may affect the amount of tax owed.
If withholding or estimated payments have not kept pace with those changes, filing season could bring an unplanned tax bill. Looking at these figures before year-end gives you time to make adjustments and better prepare for what is ahead.
Review Side Income and 1099 Activity
Income beyond a traditional paycheck continues to be common. Freelancing, consulting, online sales, rideshare work, and payments received through digital platforms can all create tax reporting responsibilities.
If you earned side income in 2026, take time to organize your records before the year closes. Reviewing income, business expenses, and potential tax obligations can make it easier to understand your responsibilities and avoid a last-minute rush.
A review of self-employment activity may also identify qualifying business deductions. Having complete records in place can help reduce filing complications when tax documents begin to arrive.
Consider Increasing Retirement Contributions
Retirement contributions can support both long-term savings and current-year tax planning. Reviewing available opportunities before year-end may be worthwhile if you have room to increase contributions to eligible accounts.
Additional contributions may reduce taxable income while helping build savings for the future. Taxpayers age 50 and older may have access to catch-up contributions, which can provide another opportunity for tax-advantaged retirement savings before the year ends.
Recent law changes have also broadened certain contribution opportunities for some individuals in their early 60s. For people nearing retirement, this makes a year-end review of retirement savings especially timely.
Assess Whether a Roth IRA Conversion Fits Your Plan
The end of the year can also be a useful point to consider whether a Roth IRA conversion supports your financial goals. A conversion generally moves funds from a traditional IRA to a Roth IRA.
The amount converted typically becomes taxable income in the year of the conversion. In return, qualified withdrawals from the Roth IRA may be tax-free in the future.
This strategy may deserve a closer look for individuals having a lower-income year or planning for future retirement distributions. Evaluating the immediate tax effect alongside the potential long-term benefit before year-end can help inform the decision.
Review Education and Dependent Care Tax Benefits
Families with children, dependents, or college students should review applicable tax benefits before the end of 2026. Education and care-related expenses can be important parts of a family’s overall tax picture.
If you or a dependent is enrolled in college, paying certain qualified education expenses before year-end may help maximize education-related tax credits, depending on your individual circumstances. Keep clear records of applicable payments and expenses.
It is also helpful to review dependent care documentation. Taxpayers who paid for daycare, after-school care, summer day camp, or other qualifying care so they could work or look for work may have benefits to consider. Recent tax law changes expanded the Child and Dependent Care Credit beginning in 2026, making this area particularly important to revisit before filing season.
Make the Most of HSA and FSA Opportunities
Health Savings Accounts and Flexible Spending Accounts may offer meaningful tax advantages, but they are often overlooked until the end of the year. A review now can help you understand available options while there is still time to act.
Check contribution limits, current account balances, and eligible expenses. Depending on your circumstances, you may have an opportunity to use available HSA or FSA tax benefits before the calendar year closes.
A brief review of these accounts can help ensure they are being used effectively as part of your overall year-end tax planning strategy.
Evaluate Charitable Giving Plans
Charitable contributions remain a key year-end planning topic for many taxpayers. Reviewing planned donations before December 31 can help you coordinate giving with your broader tax situation.
Under the One Big Beautiful Bill Act, taxpayers using the standard deduction may still qualify to deduct certain cash charitable contributions beginning with the 2026 tax year. That means charitable giving may be worth considering even for taxpayers who do not anticipate itemizing deductions.
Taxpayers near the threshold for itemizing may also want to assess whether combining charitable gifts into one tax year could improve the overall tax impact of their giving. Keep appropriate contribution records as part of this review.
Confirm Required Minimum Distributions and Beneficiaries
Retirement tax planning is not limited to making contributions. Taxpayers age 73 and older generally must take required minimum distributions, or RMDs, from certain retirement accounts each year.
Not taking the required distribution can lead to penalties. Reviewing account balances and distribution requirements before year-end can help ensure this obligation is addressed on time.
It is also a good time to check beneficiary designations on retirement accounts, life insurance policies, and other financial accounts. Marriage, divorce, births, deaths, and other family changes can leave old beneficiary information out of date. Keeping these designations current helps ensure assets are directed according to your wishes.
Organize Documents Before Tax Season Arrives
One of the most valuable year-end tax planning habits is getting organized early. Collecting records now can make tax preparation more efficient and less stressful in the months ahead.
Gather receipts, donation acknowledgments, bank statements, business expense records, and other tax-related documents while they are easier to find. Early organization may also help identify deductions or credits that could otherwise be overlooked.
As tax season approaches, locating missing paperwork and confirming details can become more difficult. Taking action before 2026 ends can give you a clearer view of your tax situation and help you enter filing season better prepared.
Hillin & Company, PC can help you review year-end tax planning opportunities and discuss steps that align with your financial goals. Contact our team to evaluate your options and prepare for the upcoming tax season.
