100 Days Left of the Year - Individual Taxes

With only about 100 days remaining in 2026, this is an ideal time to revisit your tax situation and evaluate opportunities that may help strengthen your financial position before the year closes. The final stretch of the year often provides meaningful ways to adjust your tax strategy, improve cash flow, and reduce the likelihood of unexpected outcomes during filing season. By reviewing a few essential areas now, you can enter tax season better prepared and more confident in your overall tax picture.

Proactive year-end planning does not need to be overwhelming. By focusing on key items before December 31, many individuals and small business owners can identify helpful strategies that offer potential benefits when it is time to file their returns.

Review Tax Withholding and Estimated Payments

One of the most important steps to consider before year-end is evaluating whether your tax withholding and estimated tax payments still match your overall income for 2026. Significant changes—such as switching jobs, earning freelance income, receiving investment earnings, or navigating a major life event—can shift the amount of tax you owe.

If your current withholding does not reflect these changes, you may face an unexpected balance due at tax time. Taking a moment to review your payments now may help you correct any discrepancies and prevent surprises during the filing process.

Evaluate Side Income and 1099 Reporting

With more individuals earning money through freelance work, online sales, consulting, rideshare driving, or digital platforms, it is especially important to evaluate earnings outside traditional employment. Reviewing records for 2026 can help you understand your taxable income and ensure the accuracy of your reporting obligations.

Organizing expenses, receipts, and documentation for any side business activity may also reveal potential deductions and reduce the risk of complications when your 1099 forms arrive.

Maximize Retirement Contributions

Retirement contributions remain a powerful tool for long-term savings and current-year tax planning. Increasing contributions before December 31 may reduce taxable income while helping you build additional financial security for the future.

Those age 50 or older may also benefit from catch-up contributions, which offer additional tax-advantaged savings opportunities. Recent legislative updates have expanded certain contribution options for individuals in their early 60s, making this an especially valuable area to review as the year draws to a close.

Consider a Roth IRA Conversion

The end of the year can be an appropriate time to determine whether a Roth IRA conversion fits your financial goals. Converting funds from a traditional IRA to a Roth IRA typically results in taxable income for the year of conversion.

However, once the funds are in the Roth account, qualified future withdrawals may be tax-free. For individuals experiencing a lower-income year or planning ahead for future distributions, evaluating the long-term benefits of a conversion before year-end may be worthwhile.

Review Education and Dependent Care Benefits

Families with students or dependents may benefit from reviewing available tax advantages related to education and childcare. If you or a dependent is enrolled in college, paying qualifying education expenses before year-end may help maximize available tax credits, depending on your circumstances.

For families with childcare expenses—including after-school programs, daycare, summer day camps, or similar services—keeping detailed records is essential. Beginning in 2026, updates to the Child and Dependent Care Credit offer expanded tax benefits, making it especially valuable to ensure your documentation is complete before filing season.

Make the Most of HSA and FSA Accounts

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can significantly benefit taxpayers, yet many individuals wait until the final moments of the year to review them. Looking at your contribution levels, account balances, and remaining eligible expenses now may help you take full advantage of these tax-favored accounts.

Confirming your year-end activity ahead of time may prevent unused funds from being overlooked and ensure you make the most of available tax advantages.

Explore Charitable Giving Opportunities

Charitable contributions continue to play a key role in year-end tax planning. Under the One Big Beautiful Bill Act, individuals claiming the standard deduction may still be permitted to deduct certain cash charitable gifts beginning in 2026. This makes charitable giving worth reviewing, even for those who do not expect to itemize.

Individuals who are close to the itemizing threshold might also consider whether consolidating charitable donations into one tax year could create a stronger overall tax benefit.

Review Required Minimum Distributions and Beneficiary Information

Taxpayers age 73 or older generally must take required minimum distributions (RMDs) from eligible retirement accounts each year. Missing an RMD may result in penalties, making it essential to review your required amount before the year ends.

This is also an excellent time to confirm that beneficiary designations on retirement plans, life insurance policies, and financial accounts remain accurate. Major changes—such as marriage, divorce, births, or deaths—may require updates to ensure assets are allocated according to your wishes.

Get Organized for the Upcoming Tax Season

One of the simplest but most productive steps you can take is organizing your tax documents early. Collect receipts, donation records, bank statements, business expenses, and other tax-related materials while information is still easy to locate.

Preparing these items now can streamline the filing process and may reveal deductions or credits that could otherwise be missed. As tax season approaches, tracking down missing documents typically becomes more difficult, making early organization especially valuable.

Although the final days of the year tend to pass quickly, there is still time to take advantage of impactful tax planning opportunities before 2026 concludes. Even small proactive steps may improve your overall outcome and reduce stress during filing season. If you would like support reviewing these year-end strategies or preparing for the upcoming tax season, the team at Goodson & Taylor CPAs is here to help.