A Head Start on Tax Season

 

Tax season doesn’t start with filing – it starts with preparation. Taking a little time now to gather information and understand key deadlines can make the months ahead far smoother, especially as returns grow more complex and timelines vary. Whether your return is straightforward or more complex, early organization puts you in a better position to file accurately and with less stress.

Many tax forms arrive gradually throughout late winter and early spring, often from multiple sources. Common documents to watch for include:

  • W-2s and 1099s

  • Investment income statements

  • Retirement account statements

  • Mortgage interest and charitable contribution records

Even if all documents haven’t arrived yet, creating a dedicated folder - digital or physical - can make it much easier to stay organized as they do.

As April approaches, it is important to consider logistics as well: Will you be available to review and sign your return? Do you anticipate a balance due or estimated payments? Will travel or other commitments affect timing? Starting now can go a long way in ensuring a relaxed spring.

Extensions Are Perfectly Okay

Say it with me now: “Extensions are completely normal and acceptable!” While it’s true that tax season used to “end” on April 15, that season now goes well into the year driven by a shortage of CPAs as well as increased complexity in the tax code. An extension gives you additional time to file your tax return and can be especially helpful if documents are delayed or if your tax situation is more complex. Keep in mind, however, that while an extension moves the filing deadline, any taxes owed are still generally due by the April 15th deadline. The extension deadline depends on the type of return but will either be due in September or October.

Tax Returns Are Just a Piece of the Pie

While tax returns are the top priority on every accountant’s mind right now, there are some other important items to consider before April 15th is upon us, such as:

  • Required Minimum Distributions: If you attained the age of 73 in 2025 and did not take your first RMD last year, this will need to be taken by April 15th. Going forward, all RMDs will need to be taken by December 31st, so that may require you to take two during 2026.

  • IRA Contributions: There’s still time to make contributions to your IRA for the 2025 tax year as these are also due April 15th. The contribution limit for individuals under 50 years old is $7,000, while the limit for those 50 and over allows for an additional $1,000.

  • Overcontribution of IRA: If you accidentally overcontributed to your IRA, there’s still time to correct it! By withdrawing the excess contribution and earnings by April 15th, you can avoid the penalty tax on the excess amount. The penalty is dependent on your age and type of plan; however, it can be avoided altogether if remedied by this date.

  • HSA Contributions: Health Savings Accounts can be a fantastic planning tool and a vehicle for tax savings. Contributions made by April 15th, within the acceptable annual limit, can help reduce 2025 taxable income. Additionally, HSAs enjoy tax-free growth and withdrawals if used for qualified medical expenses.

Final Thoughts

Tax season is rarely about a single deadline – it’s about preparation, timing, and coordination. Taking small steps now can help reduce surprises later and create space for more thoughtful decision-making. Whether that means organizing paperwork, planning for required distributions, or simply allowing yourself the flexibility of an extension, early action can make the months ahead far less stressful. A proactive approach today can help ensure a smoother spring and a more confident year ahead. If you haven’t already, be sure to reach out to your tax professional sooner rather than later. Cheers to smart planning!

 

Lauren Akeman, CPA, is a Certified Public Accountant who joins Allen Trust Company with eight years of experience in accounting and financial management. She earned both a bachelor’s degree in accounting and a Master of Business Administration from Lindenwood University. To speak with Lauren Akeman, please contact our office at (503) 292-1041 or via email at info@allentrust.com.

 

Disclosure: The information provided in this writing is for general informational purposes only and does not constitute financial advice from Allen Trust Company and Allen Capital Management. Readers are encouraged to consult with a qualified financial advisor to assess their individual circumstances and make informed decisions based on their specific situation.

 
Tax PrepLauren Akeman, CPATax Planning