For many individuals, tax season brings a mix of uncertainty and last-minute stress. With some thoughtful preparation, you can reduce surprises, minimize your tax liability, and make the process more efficient for you and for your advisor.

Here are a few practical ways to stay ahead this year.

Start With the Essentials: The Documents You’ll Need

Effective tax preparation begins with gathering the right documents. Once you have these in one place, the rest of the process becomes much easier.

Start by collecting basic personal information such as Social Security numbers, your current address, and details for any dependents. Next, pull together all income forms including W-2s, 1099s, K-1s, and investment statements.

For above-the-line deductions, gather records for IRA and HSA contributions along with any student loan interest. For itemized deductions, compile your mortgage interest statement, property tax receipts, state and local tax payments, charitable contributions, and qualified medical expenses. If you are self-employed or purchased insurance through the marketplace, include your health insurance documents as well.

You should also note any major life changes during the year. Events such as a birth, marriage, divorce, death, or the purchase or sale of a home or business can have significant tax effects.

Be Patient With Late or Corrected Forms

Although organization is important, filing too early can create problems. This is especially true if you have investment accounts or receive K-1s. Some custodians do not issue 1099s until mid-February or later, and corrected forms may continue arriving weeks after that.

Waiting to file until all final documents are available helps you avoid amended returns and the time, cost, and stress that come with them.

Do Not Overlook These Common Deductions and Credits

Tax season is a time when very simple oversights can lead to missed savings.

Self-employed individuals may be able to deduct health insurance premiums. HSA contributions are another strong tool for reducing taxable income. Childcare expenses, education costs, charitable giving, and certain energy-efficient home improvements may also qualify for valuable benefits.

If you contributed to a SEP IRA, solo 401(k), or traditional IRA, those contributions may be deductible based on your income and plan type. Even if you did not qualify in the past, changes in your situation or in current tax law may make these opportunities worth revisiting.

New Deductions Under the One Big Beautiful Bill Act

The One Big Beautiful Bill Act, signed on July 4, 2025, introduced several new deductions that may lower your taxable income this year.

Tip income deduction. Workers in tipped occupations may deduct qualified tips from federal taxable income. The limit is $25,000 for married couples filing jointly and lower for other taxpayers. The deduction phases out as income rises and has strict eligibility rules. Learn more about the new tip deduction by clicking here.

Overtime pay deduction. The premium portion of overtime pay, often the additional half-rate in time-and-a-half, may now be deductible. The annual limit is $12,500, or $25,000 for joint filers. Income phase-outs apply. Learn more about the new overtime pay deduction by clicking here.

Car loan interest deduction. Taxpayers may deduct up to $10,000 in interest paid on loans used to purchase a new personal-use vehicle. The vehicle must be new. Lease payments do not qualify. Income limits apply to this deduction as well.

Additional deduction for seniors. Taxpayers age 65 or older may claim an additional $6,000 deduction. Married couples where both spouses qualify may claim $12,000. Income thresholds determine eligibility.

Each provision includes detailed requirements and documentation standards. A qualified tax advisor can help you determine whether you are eligible.

Business Owners: Additional Items to Keep in Mind

Business owners have additional responsibilities that affect both business and personal tax returns.

If you operate an S corporation or partnership, your business return should be filed before your personal return. Your Schedule K-1 flows through to your individual taxes, and delays in filing the business return will delay your personal filing.

Make sure your books are complete and accurate. This includes reconciling bank accounts, categorizing expenses, and reviewing any unusual transactions.

If you paid independent contractors at least $600 last year, you are likely required to issue a 1099-NEC by February 2. Missing the deadline can result in penalties, so confirm that these forms have been sent.

Use this time to review mileage logs, home-office expenses, and business-related travel or meals paid out of pocket. Strong records make your deductions easier to support and give you more confidence if your return is ever reviewed.

Understand Your Deadlines and What an Extension Means

For most taxpayers, the filing deadline this year is April 15, 2026. State deadlines may differ, especially in areas affected by disaster declarations.

If you need more time to file, you can request an extension. An extension gives you more time to submit your return, but it does not give you more time to pay. If you expect to owe taxes, sending a payment with your extension form by April 15 can help you avoid interest and penalties.

Why Working With a Tax Professional Matters

Even simple returns can involve layers of complexity. Major life events such as marriage, divorce, inheritance, or the sale of a business often carry tax implications that are easy to overlook.

Items like equity compensation, cryptocurrency transactions, multi-state income, passive K-1 activity, and prior IRS notices require careful review. While software can be helpful, it cannot always identify key risks or opportunities that an experienced CPA will recognize.

Partnering with a professional early ensures compliance with current rules, reduces errors, and helps you make informed decisions.

A Little Preparation Goes a Long Way

The more organized you are now, the more smoothly tax season will go. Early preparation helps you avoid missed deductions, penalties, and last-minute issues. If you are unsure whether your current process is working for you, this is an ideal time to ask for guidance.