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The Year-Round Tax Planning Checklist

Simplify your tax season now and for years to come.

Are you ready for tax season?

As you prepare to file taxes in 2026, there are a few new rules to consider. Just as important, building a foundation of planning and organizing can prepare you for simpler tax seasons for years to come.

While it may seem like the tax rules change every year, the most important tasks remain the same from year to year. That includes planning ahead and keeping track of your financial records.

What’s New for the 2026 Tax Filing Season?

Most people will file taxes in the spring of 2026 for tax year 2025, and there are several new tax law changes that will affect those returns. Here’s a look at some of the most notable tax changes for tax year 2025:

  • New deduction for seniors. Eligible taxpayers age 65 and older can claim an additional $6,000 deduction ($12,000 for qualifying joint filers), on top of the standard deduction.1
  • Deduction for tips. Workers who earn tips can deduct up to $25,000 of qualified tips from their taxable income.1
  • Deduction for overtime pay. Eligible workers can deduct the “half” portion from their time-and-a-half overtime pay, up to $12,500 for individuals or $25,000 for joint filers.1
  • Car loan interest deduction. Taxpayers can deduct up to $10,000 in interest paid on a loan for a new, qualified U.S.-built vehicle.1
  • Child tax credit. The maximum child tax credit has increased to $2,200 per qualifying child under age 17.2
  • SALT deduction cap increase. The cap on the itemized deduction for state and local taxes (SALT) has temporarily increased from $10,000 to $40,000 for joint filers, through 2029.3

How Can I Make Future Tax Filing Easier?

Planning throughout the year for tax filing may allow you to save time and stress and make it easier to file an accurate return. If the IRS typically owes you money each year, an accurate return will result in a faster refund.

Consider following these tips to help you be prepared for efficient tax filing next year.

✔️ Update your withholding

If your refund or tax bill was not what you expected this year, either too much or too little, you may need to adjust the amount your employer is withholding from your paychecks to properly cover income taxes.

The IRS offers a tax withholding estimator that you can use to determine the right amount for your situation. To change the amount your employer withholds, you’ll need to provide them with an updated Form W-4.

Remember to adjust your withholding anytime your tax or income changes throughout the year to ensure that you won’t be surprised when you file your taxes.

✔️ Plan for estimated tax payments

If you have taxable income from a side gig, investments, or other sources that do not provide tax withholding, you may need to make estimated tax payments on a quarterly basis throughout the year.

Typically, if you owe taxes of $1,000 or more when your return is filed, the IRS expects you to make estimated tax payments. You’ll need to estimate your income for the year to determine how much to pay in estimated taxes.

It’s a good idea to consult with a tax professional for help. You can also use the worksheet in Form 1040-ES to help. If you estimate incorrectly, you always can adjust your tax payments later in the year.

✔️ Track and organize your tax records 

When you file taxes, gathering the necessary documents can be one of the most time-consuming tasks.

You can avoid that process at tax time by keeping your records organized all year. Consider creating four folders and filing documents in them throughout the year, including:

  • Personal information. This includes Social Security numbers for everyone on your tax return, unexpired identification, your adjusted gross income and exact refund amount from last year, and if applicable, your PIN for e-filing your tax return.
  • IRS forms. This folder will include tax forms from people who paid you money, such as your W-2 from your employer; 1099 forms for side gig work, miscellaneous income, or earned interest. In most cases, these forms will be sent to you in January or February following the tax year. They may also be submitted electronically, so be sure to check your records or e-mail for any you may have missed.
  • Documentation for credits or deductions. If you plan to itemize deductions, you’ll need to keep track of necessary records. You may also need to keep charitable donation receipts, home mortgage and property tax statements, childcare expenses, business mileage logs, 1098-T for college tuition payments, or other necessary records.
  • Documents from side gigs or self-employment. If you own a business or have a side gig, this folder will contain records of your estimated tax payments, records of deductible office expenses, statements from banks or payment processors, and other documentation.

✔️ Consider life events  

If you relocate, get married or divorced, have or adopt a child, get a second job, retire, experience a natural disaster, or experience other major life changes, your taxes may be affected.

Rather than waiting until tax season to figure it out, take the appropriate steps when your situation changes. The IRS offers a list of forms that should be completed when certain life events occur to help you stay on top of the changes.

When you take time throughout the year to review your tax situation, you’ll be better prepared for the following tax season and may even allow you to save more money in the long run.

Disclaimer: This article is for general information and education only. It should not be considered financial or tax advice.

1 https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors
2 https://www.irs.gov/credits-deductions/individuals/child-tax-credit
3 https://www.irs.gov/instructions/i1040sca

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