100 Days Left of the Year - Individual Taxes

With just over three months left in 2026, this is an ideal moment to look closely at your tax situation before filing season arrives. The final stretch of the year often brings opportunities to make adjustments that can influence your tax bill, improve cash flow, and help minimize surprises. Taking a proactive approach now allows you to uncover potential savings and set yourself up for a smoother return process when tax time rolls around.

Many taxpayers wait until January or February to think about their taxes, but evaluating key financial items before December 31 can make a meaningful difference. Whether 2026 brought changes to your income, new side earnings, increased retirement saving, or major milestones in your personal life, reviewing these areas now can provide clarity and direction. The Callen Accounting Group is committed to helping individuals and small businesses across Mountain Home and the Twin Lakes area make the most of these year-end opportunities.

Review Tax Withholding and Estimated Payments

One of the most important steps in year-end tax planning is making sure your tax withholding and estimated payments still match your actual income for 2026. Life events such as starting a new job, launching a side business, receiving investment income, or experiencing other financial changes can shift your tax liability.

If your withholding no longer reflects your current earnings, you may end up owing more than expected or facing penalties at tax time. Taking a few minutes now to verify your payroll withholding or review your quarterly estimated tax payments can help you decide whether an adjustment is needed before the year closes.

A quick check-in now may help you avoid a stressful surprise when filing your 2026 return.

Evaluate Side Income and 1099 Tax Reporting

More people than ever are earning income outside of traditional employment through freelancing, contract work, online sales, rideshare driving, or digital payment platforms. If you collected side income this year, reviewing your records before year-end is especially important.

Tracking what you earned, documenting your related expenses, and keeping receipts organized can make tax preparation far easier. This review can also help identify deductions connected to self-employment—reducing your taxable income while making sure you report everything accurately.

By staying ahead of 1099 reporting requirements, you can lower the risk of filing issues once tax forms start arriving in early 2027.

Increase Retirement Contributions Before Year-End

Boosting retirement contributions is one of the most effective ways to lower taxable income while supporting long-term financial goals. Adding more to a traditional IRA or workplace retirement plan may reduce the amount of income you are taxed on for 2026.

Taxpayers aged 50 and older may also take advantage of catch-up contributions, which provide an additional opportunity to increase tax-advantaged savings. Recent law changes have expanded certain contribution allowances for individuals in their early 60s, making this a valuable area to revisit if retirement is on the horizon.

These strategies not only help lower your current tax bill—they also strengthen your future financial security.

Consider a Roth IRA Conversion

For some taxpayers, the end of the year can be a fitting time to think about whether a Roth IRA conversion makes sense. Converting funds from a traditional IRA into a Roth IRA creates taxable income in the year of conversion, but qualified withdrawals from the Roth account in future years may be tax-free.

This can be especially appealing if you expect your income—or tax rate—to rise in coming years. A conversion may offer long-term benefits for individuals experiencing a lower-income year or those planning ahead for retirement distributions.

Evaluating this option before December 31 helps ensure you understand both the immediate and future tax impacts.

Review Education and Dependent Care Tax Benefits

Families with students or young children should review available tax benefits well before year-end. If you or a dependent is enrolled in college, paying qualifying education expenses before December 31 may help increase eligibility for education-related credits.

Parents who paid for daycare, after-school activities, summer day camps, or similar care so they could work or look for work should also take a closer look at these expenses. Beginning in 2026, changes to the Child and Dependent Care Credit have expanded available benefits, making accurate recordkeeping more important than ever.

Reviewing these details now may help you maximize valuable tax savings.

Maximize HSA and FSA Tax Benefits

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) offer strong tax advantages, but many taxpayers wait until the last moment to use them effectively. Checking contribution limits, account balances, and eligible medical expenses can help you determine whether there is still time to add funds or use remaining dollars.

An HSA, in particular, can be a powerful long-term savings tool since unused balances roll over each year. FSAs, however, may have use-it-or-lose-it rules depending on your employer, making year-end planning essential.

A quick review now may help you take full advantage of these tax-favored accounts before December 31.

Explore Charitable Giving Strategies

Charitable giving continues to be an important year-end tax planning topic. Under the One Big Beautiful Bill Act, taxpayers taking the standard deduction may once again deduct certain cash contributions beginning in 2026. This makes charitable donations worth reviewing even for those who do not plan to itemize.

Taxpayers who are close to the itemizing threshold may also benefit from evaluating whether bundling multiple years of charitable gifts into a single tax year could generate a stronger tax benefit.

Strategic giving can support causes you care about while potentially lowering your tax liability.

Review Required Minimum Distributions and Beneficiary Designations

For taxpayers aged 73 or older, required minimum distributions (RMDs) must be taken from certain retirement accounts each year. Missing the deadline or failing to withdraw the correct amount can lead to costly penalties.

Year-end is also an excellent time to review beneficiary designations on retirement accounts, life insurance policies, and other financial accounts. Important life events like marriage, divorce, births, or deaths may mean your current designations no longer match your intentions.

Keeping this information updated ensures your assets pass according to your wishes.

Get Organized Before Tax Season

Finally, one of the most practical steps you can take is organizing your tax documents early. Gathering receipts, donation records, bank statements, and business expense documentation now makes filing much easier later.

Early organization can also help you identify deductions or credits you might otherwise overlook. As tax season approaches, missing paperwork becomes harder to track down—and delays become more stressful.

Taking action now may save time and reduce frustration once filing begins.

If you would like support reviewing these year-end tax planning strategies or want personalized guidance as the 2026 tax season approaches, our team at The Callen Accounting Group is here to help. We proudly serve individuals and small businesses throughout Mountain Home, Baxter County, and the wider Twin Lakes area, offering tax preparation, IRS representation, financial statements, and more. Contact us today to discuss your options and explore strategies that align with your financial goals.