Tax Day is Over, Now What?
Now that April 15th has passed, the common reaction is relief and maybe a desire to ignore anything tax-related for the next several months. Tax Day can feel like a finish line in a race you didn’t want to be running in, but in reality, this is one of the most important times to take a step back and plan for the year ahead.
You might be asking “Why?” The simple answer is everything is fresh. The numbers are finalized, the surprises (good or bad) are clear, and you have a full year ahead to make smarter, more intentional decisions before the next deadline.
Review Your Return
Before moving forward, take time to evaluate your recently filed return. Were there any surprises, such as a large balance due or a smaller refund than expected? Were there any missed opportunities for deductions or credits? These outcomes often signal opportunities for adjustment. Review key elements like income sources, deductions, credits, and withholding levels. Identifying what drove your tax result can help prevent inefficiencies from repeating next year.
Investment Strategy Through a Tax Lens
Taxes and investments are highly interconnected and now is an ideal time to evaluate your portfolio with after-tax performance in mind. Consider whether your asset allocation remains appropriate, and explore opportunities such as tax-loss harvesting, rebalancing, or repositioning assets across taxable and tax-advantaged accounts. Additionally, changes in income or tax brackets may benefit from strategies such as Roth conversions or capital gain realization. Aligning your investment approach with your tax profile can meaningfully improve long-term outcomes.
Minimize Your Tax Liability
Oftentimes deductions and credits are subject to certain phaseout limitations – in other words, if you make too much money, you miss out. There are various methods which can be utilized to reduce your taxable income and enjoy the benefits of a smaller tax bill.
Maximize contributions to employer-sponsored 401(k)s. For self-employed individuals, vehicles such as SEP-IRAs or solo 401(k)s may allow for larger deductible contributions than to a regular IRA.
HSA contributions provide an above-the-line deduction, tax-deferred growth, and tax-free distributions for qualified medical expenses, effectively offering three tax benefits wrapped up in one.
Timing Strategies: Where possible, deferring income into a future tax year (or accelerating deductions into the current year) can help manage marginal tax brackets and overall liability.
Leverage charitable giving: For taxpayers subject to RMDs, utilizing Qualified Charitable Distributions (QCDs) can satisfy the requirement while excluding the amount from taxable income. Additionally, with the passing of the OBBBA a new charitable deduction of $1,000 for individuals is available for non-itemizers (subject to a .5% of AGI floor).
Stay Organized - Your Future Self Will Thank You
If tax season felt more reactive than it should have, there’s an easy solution: improve your systems now. Keeping clean, well-organized financial records throughout the year makes it easier to spot planning opportunities in real time, not just when you’re up against a filing deadline. It also creates more meaningful conversations with your advisors, because you’re working with current, accurate information.
Tax planning, when prioritized, is less about reacting to what has already happened and more about intentionally shaping what comes next. It brings clarity to financial decisions, creates opportunities to retain more of what you earn, and ensures that your broader investment strategies are working to your advantage. Tax and advisory professionals can help identify opportunities that might otherwise be missed and ensure strategies are implemented effectively. Thoughtful planning now pays dividends later.
Reach out to our team for tax planning strategies in 2026 – we are here to help!
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.