9 Tax Moves to Kick Off 2026

As you prepare to file your 2025 tax return, it’s natural to think the window for tax planning has closed. But you could still have meaningful choices to optimize your 2025 return (and lay the groundwork for 2026). Below are nine key strategies to consider.

Move #1: IRA Plan Contributions

While many actions must occur by Dec. 31, you still have opportunities to make contributions after year-end that apply to your 2025 tax return:

• For individuals: Contributions to a traditional or Roth IRA for tax year 2025 can be made until April 15, 2026 (or the filing deadline).
• For business-owners/self-employed: Plans like a SEP-IRA or a Solo 401(k) may still be established after December 31, 2025 (by the extended due date) and allow contributions that apply to the 2025 tax year.

Move #2: Health Savings Account (HSA) Contributions

If you were covered by a qualifying high-deductible health plan (HDHP) during 2025, your HSA remains a powerful deductible vehicle. Contributions for tax year 2025 can generally be made until your tax filing deadline in 2026.

Check your allowable limits (single vs family coverage plus catch-up for age 55+), ensure your HSA is properly designated, and confirm that you used the funds only for qualified medical expenses.

Move #3: Accounting Method Changes

Post–year-end remains a valid time to evaluate and even adopt a new accounting method (such as switching to the cash-basis method) for 2025, if eligible. For example, filing Form 3115, Application for Change in Accounting Method with your 2025 return may allow you to optimize the timing of income and deductions. You’ll want to examine whether accelerating or deferring income/deductions makes sense given your 2025 results and 2026 outlook (especially in light of recent tax law changes).

Move #4: Fixed-Asset Depreciation & Bonus Depreciation

Review fixed-asset additions placed in service during 2025 that may not yet have been fully depreciated or expensed. Under the current law:

• The One Big Beautiful Bill Act (OBBBA) signed in 2025, permanently extends many enhanced business depreciation incentives (such as 100% bonus depreciation) and makes other changes for business property.
• If you placed assets in service in 2025 and did not maximize Sec. 179 or bonus depreciation, you might still be able to correct or adopt an accounting method change (via Form 3115) to catch up deductions.
• Additionally, evaluate whether it makes sense to defer placing new assets into service until 2026 (if your 2026 tax rate is expected to be higher) or accelerate into 2025 if your rate is expected to drop. A thorough review of your fixed-asset schedule this early in 2026 can still pay dividends on your 2025 return.

Move #5: Bad Debt Deductions/Write-Offs

If your business holds accounts receivable or other debts that became worthless during 2025 (after reasonable collection efforts), you may be able to write them off as bad debts on your 2025 return. Be sure you have documentation of the debt’s worthlessness, your collection efforts, and the timing of the write-off — because the deduction often requires strict substantiation.

This is a useful reminder that even after year-end you should review your receivables, consider whether any should be treated as worthless, and ensure that your 2025 books reflect that.

Move #6: 401K Plans and Other Retirement Options for 2026

Even if you missed certain contributions for 2025, you can take advantage of the post-year-end period to review and establish retirement-savings vehicles for 2026 (or beyond).
For instance:

• Set up a new 401(k) plan early in 2026 to allow for full-year planning.
• Evaluate whether switching your business’s plan design (e.g., from SEP to defined-benefit or cash-balance plan) makes sense given your income outlook and the new tax law. Given the permanency of the lower individual and business rates under the OBBBA, a well-designed retirement plan remains central to your tax-planning.

Move #7: State and Local Tax (SALT) & Other State-Specific Considerations

With the new law, several important state/local tax planning issues warrant attention:

• The OBBBA raises the SALT deduction cap temporarily (to $40,000) for tax years 2025-2029.
• Some states allow certain deductions or credits to be elected or adjusted after year-end. Review whether your state has any extended deadlines or special provisions for 2025.
• Review your 2025 state tax position. Did you have excess state tax payments or credits that can be carried forward or adjusted? Should you accelerate or defer state tax payments given your federal deduction limits and state rules? Working with a state and local tax (SALT) specialist can help you avoid unexpected state-level pitfalls or missed opportunities.

Move #8: Estimated Tax / Withholding Review

Even as you prepare your 2025 return, it’s wise to assess whether your 2025 estimated tax payments and withholding were sufficient. Under-payment risks federal (and possibly state) penalties.

Key steps:

• Compare projected 2025 tax liability to payments made and withholding.
• If you anticipate a shortfall, determine whether you qualify for penalty exceptions (safe harbor rules, annualized income method, etc.).
• Evaluate whether adjusting your 2026 withholding or estimated payments makes sense, especially in light of any tax-law changes (including lower brackets or deduction limits under the OBBBA). This review is particularly valuable early in 2026, so you enter the new tax year with a clearer picture.

Move #9: Engage with a Tax Professional

Tax law has shifted significantly with the passage of the OBBBA and other 2025 legislation, affecting individuals, pass-through businesses and corporations alike. Keeping up with these changes can be complex. A knowledgeable tax advisor can help you:

• Interpret how the new law affects your specific situation (business type, entity structure, personal income).
• Model scenarios for your 2025 and 2026 tax planning (for example, given the permanence of certain reductions and the temporary nature of others).
• Ensure you timely adopt necessary changes (accounting methods, depreciation elections, retirement-plan design) and document your choices.
  Engaging sooner rather than later — while you’re still reviewing your 2025 results and planning for 2026 — yields the best outcomes.

Although Dec. 31 is almost yere, meaningful tax-planning opportunities remain for your 2025 return and beyond. The consensus now is clear: with the OBBBA in play, the structure of many deductions, rates and credits has changed. That makes timely review, strategy and execution all the more critical.

Keep in mind: tax rules are subject to change and personal circumstances vary widely. Use this article as a framework for discussion, but always consult with your tax professional to tailor and implement the strategies that best fit your needs.

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