Prepare to File in 2026: How Smart Tax Planning Now Can Reduce Stress and Taxes Later
As we enter 2026, many taxpayers assume tax season is still far away. In reality, the most effective tax strategies happen before filing begins. Early preparation can help avoid delays, missed deductions, compliance issues, and unexpected tax balances—especially for business owners, creators, and professionals with multiple income streams.
At Velin & Associates, Inc., we work closely with Doctors, Creators, Amazon and Shopify business owners, and High Net Worth Individuals to help them prepare well in advance—so tax season becomes predictable instead of stressful.
Below is what you need to know to get ready for filing your 2025 tax return in 2026, along with practical examples from our firm.
Why Early Tax Preparation Matters More Than Ever
Tax rules continue to evolve, payment systems are modernizing, and reporting requirements for online income and digital assets are expanding. Waiting until March or April to organize your tax information often results in:
- Missed deductions or credits
- Incorrect reporting of online income
- Delayed refunds
- Increased audit risk
- Rushed decisions that cost money
Early preparation allows time to review tax law changes, reconcile records, and implement corrective strategies before filing deadlines.
Accessing and Reviewing Your IRS Account Early
One of the most overlooked preparation steps is reviewing your tax account information before filing season begins.
An IRS Individual Online Account allows taxpayers to:
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• Verify prior-year filings
• Confirm payments and credits
• Review notices or balances due
• Manage communication preferences
Example: Unexpected IRS notice
When a client came to us after receiving an unexpected IRS notice, we reviewed their IRS online account early and discovered a misapplied estimated tax payment. Because we identified the issue before filing season, we were able to correct it without penalties or delays.
Direct Deposit Is Becoming the Standard
Paper refund checks are being phased out. Taxpayers who still rely on mailed checks may face longer delays.
If you expect refunds, especially larger ones, having direct deposit set up ensures faster and safer payments.
Example: Amazon business owner with multiple marketplaces
When an Amazon business owner selling through multiple marketplaces received a substantial refund after we reconciled inventory and expenses, having direct deposit already in place allowed the refund to be received quickly and securely—without the risk of lost or delayed checks.
Key 2025 Tax Law Changes You Should Review Now
Recent legislation introduced under the One, Big, Beautiful Bill impacts credits, deductions, and eligibility requirements.
One important update:
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• To claim certain dependent-related credits, taxpayers (and spouses filing jointly) must have valid SSNs or ITINs issued before the filing deadline, including extensions.
Example: High-net-worth individual with dependents
A high-net-worth individual supporting extended family members nearly lost a valuable dependent credit due to delayed ITIN processing. Through early planning, we were able to resolve the documentation well before the filing deadline and preserve the credit
New Trump Accounts for Children: A Planning Opportunity
Starting in 2025, eligible children under 18 with valid Social Security numbers may qualify for Trump Accounts, a new long-term savings vehicle.
Key features include:
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• Eligibility for children under 18
• Pilot contribution of $1,000 for qualifying births (2025–2028)
• Tax-advantaged growth
Example: Dentist with young children
A dentist with young children used this opportunity as part of a broader family wealth strategy, coordinating Trump Accounts with education savings and long-term estate planning goals.
Income From Payment Apps and Online Sales Is Fully Taxable
Income earned through:
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• YouTube
• TikTok
• Shopify
• Amazon
• Freelance platforms
• Payment apps
is taxable—even if you do not receive a tax form.
Form 1099-K may be issued when thresholds are met, but all income must still be reported, regardless of form issuance.
Example: YouTuber with multiple income streams
A YouTuber client received income from ads, brand deals, and affiliate links, some of which did not trigger 1099-K reporting. By reconciling income early, we helped the client avoid underreporting and potential penalties.
Digital Assets: Reporting Is Mandatory
Anyone who bought, sold, exchanged, or received:
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• Cryptocurrency
• Stablecoins
• NFTs
must report activity and answer the digital asset question on Form 1040.
Some taxpayers may receive Form 1099-DA, but reporting is required even without it.
Example: Clients accepting cryptocurrency payments
When clients accepted cryptocurrency payments for digital products, we tracked cost basis, gains, and conversions well before filing season. This proactive approach prevented reporting errors and helped minimize taxable gains through proper timing strategies.
Gather Documents Early to Avoid Filing Delays
Preparing early means collecting:
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• Income statements (W-2s, 1099s, platform reports)
• Bank and credit card statements
• Mileage and expense logs
• Digital asset transaction histories
• Health insurance and retirement documents
Example: Multi-state business operations
Clients operating across multiple states benefited from early reconciliation that cleaned up expense categorization and inventory tracking, resulting in stronger deductions and a smoother, more efficient filing process.
How Velin & Associates Helps Clients Prepare for 2026
At Velin & Associates, we don’t just prepare tax returns—we help clients plan ahead.
We work with:
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• CPA for Online Commerce businesses
• CPA for Amazon Business sellers
• CPA for Filmmakers and Creators
• CPA for Doctors and Medical Practices
• High Net Worth Individuals
Our approach focuses on:
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• Early tax preparation
• Income reconciliation
• Compliance with evolving reporting rules
• Strategic tax minimization
Start Now for a Smoother 2026 Tax Season
Tax season doesn’t start when forms arrive—it starts with preparation. Reviewing changes, organizing records, and planning ahead can make filing faster, cleaner, and far less stressful.
For more information about our tax planning services, contact us today: visit our website.
Velin & Associates, Inc
8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org
CPA for YouTubers | CPA for Shopify Store | CPA for Online Commerce | CPA for Creators | Shopify Store CPA | CPA for Filmmakers | CPA for Amazon Business | Amazon Business CPA | CPA for Dental Practice | Dentist CPA | Dental Business CPA | Online Commerce CPA | CPA for TikTokers | CPA for Doctors | CPA for Medical Practice | CPA for High Net Worth Individuals
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.