Take a few minutes to ask yourself the following tax questions as we approach the last several months of 2026. The answers could uncover a problem – or an opportunity – while there’s still time to do something about it.
Am I going to owe or get a refund?
A large tax refund isn’t necessarily good or bad. The better question is whether that money would be more useful throughout the year or as a lump sum at tax time. For example, a $3,000 refund represents about $115 from every biweekly paycheck. Would having that extra money throughout the year help with monthly expenses, saving, or paying down debt? Or does receiving $3,000 at once make it easier to accomplish a larger financial goal? Review your withholding before year-end to decide which approach works best for your family.
Did I have extra income that didn’t have withholdings?
Think about any money you made outside your regular paycheck. Maybe you did some freelance work, picked up a side gig, earned rental income or made money from investments. Unlike a paycheck, taxes may not have been taken out before that money landed in your pocket. Add it all up before year-end so you have a better idea of what it could mean for your tax bill and whether you should make an extra tax payment now.
Did I experience any major life events?
Think about what changed in your household during the year. Marriage, divorce, a new baby, a child leaving home, retirement, or the death of a loved one can all affect your tax return. So can less obvious changes such as beginning to support an aging parent or having a child start college. Bringing these changes up before year-end can uncover tax credits, deductions or planning opportunities that might otherwise get missed until it’s too late to act.
Did I have any transactions that would cause a taxable event?
Selling stocks is an obvious example, but taxable events can come from many places. Did you sell real estate, cryptocurrency, a business interest or another valuable asset? Did you exercise stock options or receive proceeds from an investment? Review any significant financial transactions you made during the year. Knowing about gains and losses before December 31st may also provide opportunities for additional tax planning before the year closes.
Did I change jobs?
A job change can create several possible tax issues. Your new employer may withhold taxes differently, especially if your income changed significantly during the year. You may also have received a bonus, severance payment, unused vacation payout, or other compensation from your former employer. And don’t forget about your old retirement plan. Before year-end, review your withholdings, retirement contributions and anything else that changed when you switched jobs.
A little tax planning now can make filing your 2026 return a lot less surprising. Please call if you’d like to discuss these and other questions about your tax situation.