With the October 15 filing deadline behind us, the rhythm of the year begins to change at Waters Hardy.

We move from finishing extended returns to looking ahead.

For many clients, November is one of the most valuable times of the year to have a tax planning conversation. There’s enough information available to develop a much clearer picture of how the year is likely to end, but there’s still time to make decisions before December 31.

That distinction matters.

By the time your tax return is prepared next year, most of the activity being reported has already happened. Income has been earned. Assets have been bought or sold. Contributions have been made or missed. Business decisions have been finalized.

Tax preparation tells us what happened.

Tax planning asks a different question: What do we know now, and is there anything we should consider before the year ends?

Here are some of the conversations worth having before December 31.

1. What Is My 2026 Tax Exposure Likely to Be?

This is a good place to start.

By November, you generally have enough information to begin developing a meaningful projection of your income and tax position for the year.

That projection may include wages, business income, investment activity, estimated payments, withholding, deductions, and other relevant financial information.

The goal isn’t simply to produce a number.

It’s to identify whether your current payments and planning are reasonably aligned with what the year actually looks like.

Perhaps your income came in significantly higher than expected. Maybe your business had a particularly strong year. Or perhaps circumstances changed in the other direction.

Whatever the case, knowing where you stand now is more useful than discovering it when your return is being prepared.

2. Did Anything Significant Change This Year?

Your CPA can see the numbers you provide. We can’t automatically see everything happening behind them.

That’s why one of the most useful things you can do during a year-end planning conversation is tell us what changed.

Did you:

• Buy or sell real estate?

• Sell a business or another significant asset?

• Start a new business or income stream?

• Expand your company into another state?

• Add employees?

• Change your compensation?

• Receive a significant inheritance?

• Experience a major change within your family?

• Begin thinking about retirement or succession?

You don’t need to determine whether an event is tax-relevant before mentioning it.

Sometimes something that seems unrelated to taxes can affect the broader financial picture. Give your CPA the information and let us help determine what deserves a closer look.

3. Are There Gains or Losses We Need to Discuss?

If you sold investments, real estate, business interests, or other assets during the year, make sure your CPA knows about those transactions before year-end.

The same is true if you’re considering a significant transaction before December 31.

Investment and financial decisions should be based on your broader goals, not taxes alone. But the tax consequences can still be an important part of understanding a decision.

A conversation with your financial and tax advisors before a transaction may give you a clearer understanding of the potential implications than a conversation after it has already occurred.

4. Am I on Track With My Retirement Contributions?

Retirement planning deserves a place in the year-end conversation, particularly for clients who intended to increase or maximize contributions during 2026.

For 2026, employees participating in 401(k), 403(b), and most governmental 457 plans can generally defer up to $24,500.

Eligible participants age 50 and older may generally make an additional $8,000 catch-up contribution. Under SECURE 2.0, eligible participants ages 60 through 63 have a higher catch-up limit of $11,250 for 2026. (IRS)

Beginning in 2026, another change is also important for some higher-income employees making catch-up contributions. Participants whose prior-year wages from the plan sponsor exceeded $150,000 generally must make those catch-up contributions on a Roth basis when the plan offers a Roth feature. (IRS)

Individual circumstances and plan provisions vary, so contribution decisions should be coordinated with your plan administrator and advisors.

The practical takeaway is simpler: check now.

If contributions are being made through payroll, waiting until the final weeks of December may leave fewer opportunities to adjust them.

5. Am I Planning Significant Charitable Gifts?

If charitable giving is part of your year-end plans, consider discussing larger gifts with your advisors before making them.

Depending on your circumstances, the type of asset you give, the organization receiving it, the timing of the contribution, and your broader tax picture can all matter.

This can be especially important if you’re considering donating appreciated assets or making an unusually significant gift.

The goal shouldn’t be to make a charitable decision solely because of a potential tax benefit. Instead, good planning can help you understand the tax implications of giving you already want to do.

6. Is My Business Considering a Major Purchase?

December has a way of creating urgency.

Business owners may suddenly begin looking at equipment, technology, vehicles, or other purchases because they’ve heard spending money before year-end could reduce taxable income.

But a potential deduction doesn’t automatically make something a good purchase.

Start with the business question:

Does the company actually need it?

If the answer is yes, then it makes sense to discuss timing, cash flow, financing, and potential tax treatment.

A purchase that supports the business and fits within the business’s broader plans is very different from spending money simply to chase a deduction.

7. Have Estimated Payments and Withholding Kept Pace?

Your income may not have followed the projections you made at the beginning of the year.

If income increased substantially, your estimated payments or withholding may deserve another look. If income decreased, the picture may have changed in the opposite direction.

For individuals making quarterly estimated tax payments, the fourth estimated tax payment for the September 1 through December 31 period is generally due January 15, 2027. (IRS)

November gives you time to review where you stand before that payment arrives.

Rather than simply repeating the amount you paid in a previous quarter, consider whether your actual 2026 results suggest the number still makes sense.

8. What Should We Be Thinking About for 2027?

Good year-end planning shouldn’t stop at December 31.

As you review 2026, you may uncover questions that are really about the year ahead.

Is the business planning to grow or hire?

Are you considering retirement?

Will your compensation change?

Are you anticipating a major purchase, sale, or investment?

Is succession planning becoming more important?

Are there accounting processes or financial systems that need attention?

The answers can help shape conversations about taxes, cash flow, retirement, business planning, and other priorities for 2027.

Planning Is About Having Options

Year-end tax planning is sometimes reduced to a search for last-minute deductions.

We think it should be a much broader conversation.

It’s an opportunity to understand what happened during the year, determine where you stand today, identify what may still change, and make informed decisions while there’s still time to act.

The best year-end planning conversations don’t begin with, “How can I lower my taxes?”

They begin with, “Here’s what changed this year, here’s what I’m considering next, and here’s what I need to understand before I make a decision.”

At Waters Hardy, we work with individuals and businesses throughout the year to help them understand their tax position and prepare for what comes next.

If you haven’t had your 2026 year-end planning conversation yet, contact Waters Hardy. November is a good time to start.