Tax deadline just passed: 5 housekeeping items people often forget
The April 15 tax filing deadline has come and gone. Here are five common housekeeping items people often handle right after filing — while the information is still fresh.
April 15 has passed. Most people mentally close the tax-folder and don't open it again until next March. But there are several small items that many people handle in the weeks right after filing — partly because the information is still fresh, and partly because some of them affect the rest of the year.
1. Withholding — checked when there's a big refund or bill
A large refund is sometimes described as 'an interest-free loan to the government.' A surprise bill can mean withholding was too low and may trigger an underpayment penalty next year. The W-4 form on most payroll systems can be adjusted any time. Many people aim for a small refund or small bill rather than a large one in either direction.
2. Where the return gets stored
Three years of returns is the standard retention recommendation; seven years covers most edge cases. Returns can be needed for mortgage applications, refinances, FAFSA filings, and audits. Cloud storage with clear labels is one common approach. Password protection is optional.
3. Tax-advantaged contributions for the new year
- 401(k) contributions are often reviewed in spring — particularly to confirm the full employer match is being captured, and especially after a raise.
- HSA contributions tend to come up in this review for those with eligible high-deductible health plans, given the unusual triple-tax-advantaged structure.
- Backdoor Roth IRA contributions are sometimes done early in the year to keep the paperwork simpler than waiting until December.
4. Estimated taxes on 1099 income
Side income from freelance, contract, dividends, or interest is generally subject to quarterly estimated taxes. The IRS calendar for these payments runs April 15, June 15, September 15, and January 15. Setting aside 25-30% of those payments in a separate account is a common approach. Underpaying triggers penalties.
5. Tax-loss harvesting candidates noted
Some people scan their taxable investments around this time to note which positions are sitting at meaningful losses. December tends to be when tax-loss harvesting decisions are made, but identifying candidates earlier saves time later.