Before You File: A CPA’s Reality Check for January
January 18, 2026
Filing early feels productive, but for many, it’s a costly mistake. Here is why my clients don't hit "submit" until the full financial picture is in focus.
Every January, the pressure builds. Tax forms trickle into your inbox, software ads promise "maximum refunds," and the urge to "just get it over with" feels like productivity.
But here is the reality I share with my clients every year: January isn't filing season. It’s preparation season.
As a CPA and Personal CFO, my goal isn't just to file a return—it's to ensure we file once, accurately, and without leaving money on the table. Here is the reality check I walk my clients through before we hit "submit."
The High Cost of Being "Early"
The biggest tax mistakes rarely stem from complex strategies; they stem from rushing. Filing before the full financial picture is in focus leads to a domino effect of headaches:
The "Amended Return" Trap: Filing a 1040-X costs more in professional fees and triples your audit risk.
IRS Matching Errors: The IRS’s automated systems are faster than ever. If your return says $5,000 in interest and a late 1099 says $5,100, a flag is raised immediately.
Delayed Refunds: Ironically, filing an incomplete return early often leads to longer processing delays than filing a perfect return in March.
The Readiness Checklist: Are You Actually Ready?
Before you decide you’re ready to file, run through these five "Seasoned CPA" benchmarks:
1. The "Mid-February" Rule for Documents
Many high-impact forms don't even exist in January. If you have any of the following, you are likely not ready to file:
Brokerage Statements (1099-B/Consolidated): These are notorious for "corrected" versions arriving in late February.
K-1s: If you have business partnerships or private equity investments, these rarely arrive before March.
Stock Comp: RSUs, ESPPs, and ISOs require specialized reporting that usually isn't finalized until February.
2. Confirmation vs. Estimation
In the eyes of the IRS, "close enough" is an invitation for a letter. If a number hasn't been verified by a physical or digital document, it doesn't belong on your return. We don't guess; we validate.
3. The "Roadmap" Review
I tell my clients, your 2024 return is the map for 2025. Before filing, compare your current document pile to last year’s return. Did you miss a small 1099-INT from a high-yield savings account? Did you carry forward a capital loss? If you haven't looked back, you shouldn't be moving forward.
4. Identifying "Life Shifts"
Even "small" changes can have outsized tax implications. Ensure you've accounted for:
Moving to a new state (multi-state filing requirements).
Side-hustle income (even if you didn't get a 1099-K).
Home energy improvements or EV purchases.
5. The "File Once" Mindset
Ask yourself, am I filing for speed, or am I filing for accuracy? Speed is a vanity metric; accuracy is a wealth-building metric.
How to Use January Effectively
If you shouldn't file, what should you do? Use this month to act as your own CFO:
Centralize: Create one digital folder for 2025 tax documents.
Audit your inbox: Search "1099" or "Tax Document" weekly.
Check your payroll: Ensure your final 2024 paystub matches your W-2.
Ask the "What Ifs": If you had a major life event, reach out to your CPA now, not April 10th.
The Bottom Line
The IRS typically doesn't even begin processing returns until late January. There is no strategic advantage to beating the calendar if your data is incomplete.
A calm, organized filing in February or March is infinitely better than a frantic, corrected filing in January.
Give yourself permission to wait until the picture is clear. That is how you avoid mistakes, and how you keep your stress levels at zero.
Written by Kindled Planning: Light the way to your financial future.
A CPA-led personal CFO service helping families and business owners make confident, tax-smart financial decisions, without losing sight of what matters most.
