Year-End Tax Checklist: What to Review Before December 31

As the end of 2026 approaches, now is a good time to review your tax situation and make sure there are no important planning opportunities left on the table.



While tax filing season may still feel months away, several strategies and decisions need to be completed before December 31 to affect your 2026 taxes. Taking a little time now to review your income, retirement accounts, investments, and other financial activity can help you prepare for tax season and avoid surprises.

Here are a few areas worth reviewing before the calendar turns.

1. Check Your Withholding and Estimated Tax Payments

If your income changed during 2026, your current tax withholding or estimated payments may no longer match what you will ultimately owe.

A job change, raise, bonus, self-employment income, investment gains, or other significant financial changes can all affect your tax situation.

Reviewing your expected income and payments before year-end can help identify whether an adjustment may be needed before filing season.

2. Review Retirement Contributions and Roth Conversion Opportunities

Take a look at how much you have contributed to your workplace retirement plan this year.

For 2026, the employee contribution limit for most 401(k), 403(b), and governmental 457 plans is $24,500. Depending on your age, additional catch-up contributions may also be available.

This can also be a good time to evaluate whether a Roth conversion fits into your overall financial and tax plan. Because a Roth conversion generally creates taxable income in the year it occurs, the decision should be considered alongside your income, tax bracket, and long-term retirement strategy.

If a Roth conversion is part of your 2026 plan, it generally must be completed by December 31.

3. Look at Investment Gains and Losses

Before year-end, review activity within your taxable investment accounts.

If you realized capital gains during the year, you may want to determine whether losses elsewhere in your portfolio could be used to offset some of those gains through tax-loss harvesting.

Taxes should not be the only reason to buy or sell an investment, however. Any year-end investment decisions should still fit within your broader financial plan and account for rules such as the wash-sale rule.

4. Finalize Your Charitable Giving

If charitable giving is part of your plans for 2026, make sure any year-end contributions are completed on time and that you keep appropriate documentation.

There is also a new consideration for 2026. Eligible taxpayers who do not itemize may deduct up to $1,000 of qualifying cash charitable contributions, or $2,000 for married couples filing jointly.

Depending on your circumstances, other strategies such as donating appreciated investments or making a qualified charitable distribution from an IRA may also be worth discussing with your tax and financial professionals.

5. Confirm RMDs and Review Benefit Accounts

If you are required to take a Required Minimum Distribution from a retirement account, confirm that the required amount has been distributed before the applicable year-end deadline.

This is also a good time to review any tax-advantaged benefit accounts you use.

For those eligible to contribute to a Health Savings Account, the 2026 contribution limits are $4,400 for self-only coverage and $8,750

for family coverage.

If you have a Flexible Spending Account through your employer, review your plan's rules for unused funds as well. Depending on the plan, some balances may need to be used by a specific deadline.

6. Business Owners: Review Year-End Income and Expenses

Business owners should take time before December 31 to review projected income, expenses, equipment purchases, retirement plan contributions, and any other significant transactions that could affect their 2026 tax situation.

The timing of income and expenses may create planning opportunities, but a tax deduction alone should not be the reason for making a business purchase.

Before making major year-end decisions, consider both the tax impact and whether the expense makes sense for the business overall.

Don't Wait Until Tax Season

Many tax strategies become much more limited once the year ends.

Reviewing these areas before December 31 gives you time to identify potential issues, make necessary adjustments, and coordinate decisions between your tax and financial plans.

If you are unsure whether there are year-end planning opportunities available to you, the ClearPath team can help review your situation and determine what may be worth considering before the end of 2026.

This information is intended for general educational purposes and should not be considered individualized tax, legal, or investment advice.