Tax season catches people unprepared - scattered documents, missing receipts, deadline surprises. January is when preparation pays off.
Track it: The Monthly Budget Template helps plan for tax impacts - whether you’re expecting a refund or need to save for a payment.
Key 2026 Deadlines
Several dates matter for the 2026 tax season, and missing them can mean penalties or missed opportunities. Mark these on your calendar.
January 31 is when W-2s must be sent by employers. Most 1099-NEC forms are also due by this date. By early February, most tax documents should have arrived. If something’s missing, that’s when to follow up. April 15 is the filing deadline for 2025 returns, but it’s also the last day to make 2025 IRA or HSA contributions - a detail many people miss. October 15 is the extended filing deadline if you requested an extension.
Stay organized: The Annual Tax Planner Template tracks income, deductions, quarterly payments, and includes a document checklist - everything in one place.
Documents to Gather
Gathering documents before you sit down to file makes the process significantly faster. For income, collect W-2s from each employer, 1099-NEC forms for freelance work, 1099-DIV and 1099-INT from investment accounts, 1099-B from brokerage sales, and 1099-R if you took any retirement distributions.
For deductions, gather your 1098 for mortgage interest, property tax statements, charitable donation receipts, 1098-T for tuition, 1098-E for student loan interest, and medical expense records if they’re significant.
Personal info includes Social Security numbers for everyone in your household, bank account and routing numbers for direct deposit of refunds, and last year’s return for reference. Having everything in one place before starting prevents the frustrating hunt for missing documents.
Staying Organized
As documents arrive, check them against your records, file in a dedicated folder (physical or digital), and mark as received on a checklist. This sounds basic but prevents the panic of missing something important at filing time.
A simple tracking sheet helps. List each document you’re expecting, who sends it, when it’s due, and check it off when received. Something like: W-2 from employer, expected January 31. 1099-INT from bank, expected mid-February. 1098 from mortgage company, expected early February. When something doesn’t arrive by its expected date, you know to follow up.
Budgeting for Taxes
How taxes affect your budget depends on whether you’re expecting money back or need to write a check. Both scenarios benefit from planning.
Expecting a refund? It’s your money returning, not free money - though it can feel like a windfall. Common uses include filling out an emergency fund, paying off high-interest debt, or making a retirement contribution before April 15. Worth considering: waiting until the refund actually arrives rather than using refund anticipation loans, which have fees that eat into the amount.
Expecting to owe? One approach is spreading the impact. If you expect to owe $3,000, setting aside $250/month from January through December prepares you. Payment options include paying in full by April 15 (avoids interest and penalties), IRS payment plans for larger amounts, or credit card with fees if necessary.
Self-employment requires extra attention since taxes aren’t withheld automatically. Many self-employed people set aside 25-30% of income for taxes. One approach is moving it to a separate account immediately when income arrives - that money was never really yours to spend. Quarterly payments are due April 15, June 15, September 15, and January 15 of the following year.
Before April 15
The April 15 deadline matters for more than just filing. IRA contributions for 2025 can be made until April 15, 2026, potentially reducing 2025 taxable income. This is useful if you didn’t max out contributions during the year and have room to add more.
HSA contributions follow the same deadline for Health Savings Account holders. These are the last opportunities to reduce the prior year’s tax burden, so they’re worth considering before the deadline passes.
When to File
Filing early has advantages - faster refund, reduced identity theft risk (someone can’t file fraudulently if you’ve already filed). File early if your situation is straightforward and documents are complete.
Waiting makes sense if documents are missing or your situation is complex enough that rushing could cause errors. Filing an extension (Form 4868 by April 15) gives you an automatic 6-month extension for filing. Important caveat: extension applies to filing, not payment. Estimated taxes are still due April 15 regardless of extension.
Common Questions
When should I expect my W-2? By early February. Contact your employer if you haven’t received it by mid-February.
How long to keep tax records? At least three years, which is the IRS audit period. Keep property records longer.
What if I can’t pay what I owe? File on time anyway since late filing incurs additional penalties. The IRS offers payment plans for those who can’t pay in full.