By the end of January, many believe tax planning opportunities have closed. However, you can still make moves early in the year to reduce stress, improve cash flow, and potentially lower your tax bill.
In the last issue, we covered which items could safely wait until January. This month, we want to focus on what you can still take advantage of right now, even as the year is already underway.
Retirement Contributions: You Still Have Time
Even though 2025 is behind us, retirement planning for that year is not.
Traditional and Roth IRA contributions can still be made up to the tax filing deadline in April.
Farmers' note: Some situations may require contributions by March 1.
SEP IRA contributions can be made up to your filing deadline, including extensions.
These contributions can either reduce taxable income or strengthen long-term savings, depending on your situation. Waiting until the return is finalized often limits options—early planning gives you more flexibility.
HSA Contributions Can Still Reduce 2025 Tax
If you were eligible for a Health Savings Account (HSA) in 2025, you can still make contributions up to the April filing deadline.
HSAs remain one of the most tax-efficient tools available:
• Contributions are deductible. • Earnings grow tax-free. • Qualified medical expenses are tax-free.
If your HSA wasn’t fully funded last year, this is still a planning opportunity worth reviewing.
Farmers: Planning Doesn’t Stop After Harvest
Although some estimated payment deadlines have passed, early-year planning remains valuable for farmers due to the timing of income and expenses.
January is a good time to:
• Review prior-year payments and withholding. • Identify potential cash flow concerns before filing. • Plan retirement contributions and depreciation strategies.
Waiting until late February limits options and adds pressure during your busy season.
Montana Property Owners: Verify Your Enrollment
Montana property owners: Homestead and Long-Term Rental Reduced Tax Rate applications opened December 1 and are still available.
If you got a property tax rebate last year, check your enrollment; benefits may not renew automatically. Verifying now ensures you get what you qualify for.
Use January to Get Organized (Before It Gets Busy)
Even when deadlines are months away, January is the best time to:
• Confirm W-2 and 1099 information is complete. • Identify missing documents early. • Flag potential issues before returns are prepared.
Catching problems now often prevents amended returns, notices, or delays later.
The Bottom Line
Tax season doesn’t start in April; it starts now. Late January is prime time for planning. The earlier you look ahead, the more options you have. Once returns are finalized, flexibility drops sharply.
If you're unsure which steps to take, contact us now. A quick call can ensure a smoother tax season.
Kassidy Wagner
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