Tax Season Tips
5 Tips for the Tax Season Finish Line
We can’t believe it’s almost the end of February, and the personal tax filing deadline of April 15, 2026, will be here before we know it. Whether you’ve completed your tax return already or like most of us, are still working on it, here are a few items to consider before filing:
1. Be sure you are using your “Corrected 1099,” if any.
IRS Form 1099 is used by various entities to report income other than W-2 wages. You should have received most 1099s by January 31, 2026, if you had income in 2025 from sources such as non-employee compensation, pensions, or investments.
Custodians such as Schwab or Fidelity often issue Corrected 1099s in February, so before filing, confirm you are using the most recent version.
2. Make an additional tax payment if you were “under-withheld” for 2025.
The IRS website offers a free Tax Withholding Estimator to help you check estimated taxes and withholding.
The deadline for the final 2025 estimated tax payment was January 15, 2026, but you can still submit a payment online or by check. Penalties for under-withholding may exceed late-payment costs, so making a payment may still be beneficial.
3. Make eligible contributions to retirement accounts.
You generally have until April 15, 2026, to make certain retirement contributions for the 2025 tax year. Make contributions early enough to allow processing time.
For the 2025 tax year, contribution limits include:
Traditional and Roth IRAs: $7,000 (or $8,000 if age 50+)
401(k), 403(b), governmental 457 plans, and TSP: $23,500 employee contribution limit; catch-up for age 50+ is $7,500; special catch-up for ages 60-63 is $11,250
SIMPLE IRA: $16,500; catch-up for age 50+ is $3,500 ($3,850, if eligible for 10% increase); special catch-up for ages 60-63, $5,250)
SEP IRA: Contribution limits remain based on compensation formulas and annual IRS caps.
Always confirm eligibility rules and contribution deadlines with your plan administrator or tax advisor.
4. Revisit the “Home Office” deduction.
If you work from home, review whether you qualify for the home office deduction. Both the simplified method and actual-expense method remain available, depending on your situation.
5. File an extension — on time and with payment — if needed.
If you’re unable to complete your return by April 15, 2026, you can file for an extension. Remember:
The extension applies to filing, not payment
Any estimated tax owed must still be paid by April 15
By following these tips, you can navigate tax season with confidence and enhance your overall financial wellness. Proactive planning and informed decision-making remain key to optimizing your tax strategy and achieving long-term financial success.