Tax Moves to Make Before the End of 2026

As 2026 comes to a close, it's a good time to take a closer look at your tax situation. Whether you're an individual taxpayer, self-employed, or a business owner, planning before December 31 can help you avoid surprises and prepare for the upcoming tax season.

1. Review Your Income and Withholding

Start by reviewing your income for the year and comparing it with your tax withholding or estimated payments. Changes in salary, bonuses, freelance income, investments, or business revenue may affect your overall tax situation.

2. Review Retirement Contributions

Take a look at your retirement contributions before the year ends. Depending on your circumstances, contributions to qualifying retirement accounts may offer tax benefits. Review the applicable 2026 limits and consider whether you're on track with your goals.

3. Review Major Financial Transactions

Did you sell an investment, purchase property, start a side business, or make another significant financial move this year? These transactions may have tax implications, so gather the relevant records and consider discussing them with a tax professional.

4. Check Your Business Finances

Business owners should review year-to-date income, expenses, estimated tax payments, payroll, and bookkeeping records. Getting your books in order before year-end can make tax preparation much easier.

5. Organize Your Records

Don't wait until tax season to search for important documents. Start organizing your W-2s, 1099s, receipts, investment statements, charitable donation records, and other tax documents now. The IRS recommends organizing tax records throughout the year to make filing easier and more accurate.

A little planning before December 31 can make a big difference when tax season arrives.

Dragon Tax can help individuals and businesses review their tax situation and plan ahead.