With approximately 100 days remaining in 2026, this is a practical time to review your tax position before the filing season begins. A few well-timed decisions may affect what you owe, support cash flow, and reduce the risk of an unwelcome surprise when you prepare your return.
Waiting until tax season to consider tax matters can limit your options. Changes in income, freelance earnings, retirement saving, investments, or family circumstances can all influence your tax picture. Reviewing those changes now gives you time to address them before December 31.
Year-end tax planning does not need to be overwhelming. By working through several key areas, you can gain a clearer view of your 2026 obligations and identify items worth discussing with a tax professional.
Check Withholding and Estimated Tax Payments
A review of withholding and estimated tax payments is an important part of 2026 year-end planning. James Teague & Co CPA’s helps individuals and businesses in Lubbock and across West Texas examine whether their payments remain aligned with their current income.
Your tax liability may have changed because of a new position, additional earnings, investment transactions, a side business, or significant personal events. When withholding or estimated payments do not keep pace with those changes, a balance due at filing time can come as a surprise.
Reviewing these amounts before the year closes may create an opportunity to make appropriate adjustments. This step can provide a more accurate picture of where you stand before tax preparation begins.
Account for Freelance and 1099 Income
Income earned outside a traditional job has become increasingly common. Freelancing, consulting, online sales, rideshare driving, and payments received through digital platforms may all create reporting responsibilities.
If you earned side income in 2026, take time to review your records now. Organizing income, expenses, and possible tax obligations can make individual tax services in Lubbock more efficient and help you understand what will need to be reported.
Reviewing self-employment activity may also bring attention to eligible business expenses. Keeping clear records before filing season can help reduce complications and support a more complete return.
Review Retirement Contributions
Retirement accounts can support both future financial goals and current-year tax planning. Increasing contributions to eligible accounts may reduce taxable income while building additional retirement savings.
Taxpayers age 50 and older may have access to catch-up contribution opportunities, allowing them to save more on a tax-advantaged basis before year-end. Recent law changes have also expanded certain contribution opportunities for some people in their early 60s.
For those nearing retirement, these details make an end-of-year review especially valuable. James Teague & Co CPA’s can help clients evaluate tax-related considerations as part of broader tax advisory services in Texas.
Assess Whether a Roth IRA Conversion Fits
The end of the year may be a suitable point to consider whether a Roth IRA conversion supports your financial objectives. A conversion generally moves funds from a traditional IRA into a Roth IRA.
The amount converted is typically taxable in the year of the conversion. In exchange, qualified withdrawals from the Roth account may be tax-free in the future.
This option may warrant a closer review for someone having a lower-income year or planning ahead for future retirement distributions. Understanding the potential current and long-term tax effect before year-end can help inform the decision.
Look at Education and Dependent Care Benefits
Families with children or college students should review available tax benefits before the calendar year ends. Timing can matter when education-related expenses may qualify for tax credits.
If you or a dependent attends college, paying certain qualified expenses before year-end may help maximize potential education credits, depending on your overall circumstances. Complete records are essential when preparing to claim any available benefit.
It is also wise to gather records for daycare, after-school care, summer day camps, and other qualifying care expenses paid so that you could work or seek employment. Beginning with the 2026 tax year, recent law changes expanded the Child and Dependent Care Credit, making this a meaningful area to revisit before filing.
Make the Most of HSA and FSA Accounts
Health Savings Accounts and Flexible Spending Accounts may offer worthwhile tax advantages, yet they are often overlooked until late in the year. A timely account review can help ensure you understand the options available to you.
Check contribution limits, balances, and qualifying expenses before December 31. Depending on your circumstances, there may still be time to use available HSA or FSA tax benefits during the current calendar year.
Even a brief review can help you make more informed use of these tax-favored accounts. It also provides an opportunity to identify documents that will be useful during tax preparation in Lubbock.
Consider Charitable Giving Options
For many taxpayers, charitable donations remain an important component of year-end planning. Reviewing giving plans now can help ensure contributions are properly documented and considered within your overall tax situation.
Under the One Big Beautiful Bill Act, taxpayers who take the standard deduction may still be able to deduct certain cash charitable gifts beginning with the 2026 tax year. That means donations may be worth evaluating even when itemizing deductions is not expected.
Taxpayers near the itemization threshold may also want to consider whether concentrating charitable contributions in one tax year could increase the tax benefit of their giving. The right approach depends on the individual facts and circumstances.
Confirm RMDs and Beneficiary Designations
Retirement planning includes more than making contributions. Individuals age 73 or older generally must take required minimum distributions, or RMDs, from certain retirement accounts each year.
Missing a required distribution or withdrawing too little can result in penalties. Reviewing account balances and distribution requirements before year-end is an important way to avoid preventable issues.
This is also an appropriate time to update beneficiary designations for retirement accounts, life insurance, and other financial assets. Marriage, divorce, births, deaths, and other family changes can make older designations inaccurate. Keeping these records current helps ensure assets are handled according to your wishes.
Organize Documents Before Filing Season
One of the most useful year-end tax planning steps is simply getting your records in order. Gather receipts, contribution acknowledgments, bank statements, business expense records, and other tax documents while details are still easy to confirm.
Early organization can streamline the tax preparation process and may help uncover deductions or credits that might otherwise be overlooked. It is often much harder to locate missing paperwork as filing season approaches.
The final months of 2026 can move quickly, but there is still time to take meaningful action. James Teague & Co CPA’s provides detail-focused tax planning, bookkeeping, and accounting consultations for individuals, businesses, and fiduciary entities throughout Lubbock and West Texas. Reviewing your circumstances now may help improve your overall tax outlook and make the upcoming filing season less stressful.
If you would like assistance reviewing year-end tax planning opportunities or preparing for the next filing season, contact James Teague & Co CPA’s. Our team can help you evaluate relevant options and develop a straightforward plan that supports your financial goals.