The IRS opened the 2026 filing season on January 26, 2026, and every financial news outlet is shouting the same advice: file early to get your refund faster and beat identity thieves to the punch.
But here's what they're not telling you: if you're approaching retirement with investment income, rental properties, or business interests, filing early could be one of the worst financial decisions you make this year.
The conventional wisdom about early filing was written for W-2 employees expecting refunds. Your situation is different, and your strategy should be too.
Why the "File Early" Advice Doesn't Apply to You
The typical arguments for early filing focus on three benefits: faster refunds, protection from identity theft, and early detection of errors. These matter—but they matter far less when you're dealing with complex tax situations common among near-retirees.
Here's the reality most tax preparation services won't tell you: filing early gives you more time to address surprises like inaccurate tax forms from your employer, but it also means you're working with incomplete information that could cost you thousands.
The K-1 Problem
If you own interests in partnerships, S corporations, or certain trusts, you're waiting for K-1 forms that typically don't arrive until mid-March or early April. Sometimes they come even later, especially if the entity has complex operations or international activities.
Filing before you receive all K-1s means one of two outcomes:
- You file without the information and later need to amend your return (triggering additional scrutiny and processing delays)
- You wait anyway, negating any benefit of the "early filing" strategy
The first option is particularly problematic. Amended returns increase your audit risk and can delay any refund you're expecting by months.
The Corrected 1099 Issue
Investment income often comes with corrections. That initial 1099-DIV showing $5,000 in qualified dividends? Don't be surprised when a corrected version arrives in March showing $4,200 in qualified dividends and $800 in ordinary dividends—a distinction that affects your tax rate.
Brokerage firms, mutual fund companies, and REITs regularly issue corrected 1099s through mid-March as they finalize their own tax reporting. Filing early with preliminary forms means you're either:
- Filing with incorrect information (requiring an amendment)
- Waiting to file anyway until corrections arrive
Neither scenario benefits from the January 26 start date.
Tax Planning Opportunities You'll Miss
Here's where early filing can really hurt: rushing to file eliminates your ability to make strategic moves for the previous tax year.
Until April 15, 2026, you can still:
- Make 2025 IRA contributions (traditional or Roth)
- Contribute to a Health Savings Account for 2025
- Make SEP-IRA contributions if you have self-employment income
Each of these moves requires understanding your complete tax picture first. How do you know whether a traditional or Roth IRA contribution makes more sense if you don't yet know your total income, including late-arriving K-1s?
[For more strategies on tax-smart retirement planning, visit the Mayfair Financial blog.]
The New 2026 Tax Changes That Complicate Early Filing
Several new tax law provisions from the One, Big, Beautiful Bill become effective in 2026, which could impact federal taxes, credits and deductions. These changes create additional complexity that argues against rushing your return.
New Deductions Requiring Documentation
Taxpayers will use the new Schedule 1-A to claim recently enacted tax deductions, such as no tax on tips, no tax on overtime, no tax on car loan interest and/or the enhanced deduction for seniors.
For the senior deduction specifically, this represents a $6,000 deduction for taxpayers age 65 and older. But here's the complication: the IRS is still finalizing specific rules and documentation requirements for several of these provisions.
Do you want to be an early filer working with preliminary guidance, or would you rather wait until the rules are clear and tax professionals have established best practices?
The SALT Deduction Expansion
The state and local tax deduction cap increased from $10,000 to $40,000 for joint filers under OBBBA. For many near-retirees living in high-tax states like California, New York, New Jersey, or Illinois, this changes the itemization calculation entirely.
If you've been taking the standard deduction for years because SALT was capped at $10,000, you may now benefit from itemizing. But this requires:
- Gathering receipts for charitable contributions
- Documenting medical expenses
- Tracking miscellaneous deductions
- Calculating whether itemizing exceeds your standard deduction
This analysis takes time and should be done carefully, not rushed to meet an arbitrary early-filing goal.
The Refund Size Question
With several retroactive tax cuts in OBBB, many taxpayers are expected to receive larger refunds. This sounds positive, but here's the strategic question: should you be getting a large refund at all?
A large refund means you overpaid your taxes throughout 2025. For retirees and near-retirees managing cash flow from multiple sources—Social Security, RMDs, pension payments, investment income—this suggests your withholding strategy needs adjustment.
When Early Filing Actually Makes Sense
I'm not suggesting everyone should wait until April 14. There are situations where early filing is the right strategy.
File early if:
- You have simple W-2 income only - If your tax situation is straightforward with no investment income, no business interests, and no complex deductions, the standard arguments for early filing apply.
- You're expecting a substantial refund and need the cash - Liquidity needs are real. If you're counting on that refund for necessary expenses, file as soon as you have all documentation.
- You're claiming the Earned Income Tax Credit - The IRS is legally required to hold EITC refunds until mid-February, but filing early gets you in the queue.
- You've been a victim of tax identity theft before - If your Social Security number has been compromised in the past, filing early creates a record before criminals can file fraudulent returns in your name.
- Your return is identical to last year's - Some retirees with stable pension income, consistent Social Security, and no investment changes can confidently file early because their situation truly doesn't change.
Don't file early if:
- You're waiting for K-1 forms - Partnership and S corporation income requires these forms, which rarely arrive before March.
- You have complex investment income - Multiple brokerage accounts, REITs, MLPs, or international investments frequently generate corrected 1099s.
- You're still making tax planning decisions - IRA contributions, HSA contributions, and other strategic moves deserve full analysis.
- You own rental property or a business - These situations benefit from your CPA's careful review, which is difficult to get during the February rush.
- You typically owe taxes - There's no advantage to filing early if you're writing a check. You can prepare your return early, but wait to file until closer to April 15 to retain use of that money.
The Extension Strategy for Complex Returns
Here's an approach many sophisticated taxpayers use: prepare your return thoroughly, then file an extension if needed.
Filing Form 4868 gives you until October 15, 2026 to file your return (though any tax owed is still due April 15). This six-month extension provides:
- Time for all corrected forms to arrive
- Opportunity for your tax professional to give your return proper attention rather than rushing during the February/March frenzy
- Ability to make strategic decisions based on complete information
- Flexibility to respond to any tax law clarifications that emerge
Many people fear that filing an extension increases audit risk. This is a myth. The IRS audits returns based on red flags in the return itself, not filing timing.
In fact, returns prepared during the extension period may receive better preparation because your CPA isn't juggling 200 other clients simultaneously. Better preparation often means fewer errors and red flags.
What to Do Right Now
Rather than rushing to file, take these strategic steps:
February Actions:
- Gather all tax documents as they arrive - Create a dedicated folder (physical or digital) and add forms as they come in. Don't assume you have everything until mid-March.
- Review last year's return - Understanding what you filed last year helps you anticipate what you'll need this year and spot missing forms.
- Check your withholding for 2026 - Even if you don't file your 2025 return yet, you can start optimizing your 2026 tax situation. Look at your current withholding from Social Security, pensions, and RMDs.
- Estimate your tax liability - Use last year's return as a baseline and adjust for any known changes. This tells you whether you'll owe or receive a refund.
- Schedule time with your tax advisor - If you use a CPA or enrolled agent, schedule your meeting now for late March or early April. This ensures you get on their calendar before they're completely booked.
March Actions:
- Verify you've received all forms - Cross-reference your current forms against last year's return. Missing a 1099-INT from a bank account you forgot about? Now's the time to request it.
- Review new deductions - The senior deduction, SALT cap changes, and other new provisions require documentation. Gather supporting materials.
- Make final IRA or HSA contributions - If you're contributing for 2025, you have until April 15, 2026. Don't make these contributions before you know your complete tax picture.
- Consider strategic Roth conversions - If your income came in lower than expected in 2025, you might have room for a strategic conversion. You can't evaluate this without complete information.
April Actions:
- Finalize and review your return - Whether you're doing it yourself or using a professional, final review is critical. Don't just sign—understand what you're filing.
- Decide: file or extend - If you're confident in your return, file by April 15. If you're still waiting for information or want more review time, file Form 4868.
- Pay estimated taxes for 2026 - Based on your 2025 filing, calculate your 2026 estimated tax payments. The first quarter payment is due April 15.
- Adjust withholding if needed - If you got a large refund or owed a large amount, adjust your withholding for the rest of 2026.
The Real Goal: Accuracy Over Speed
The financial media's obsession with filing early misses the fundamental point: the goal isn't to file fast, it's to file accurately and strategically.
Filing early gives you more time to address surprises and fix errors, but only if you actually have complete and accurate information to work with. Filing with incomplete information doesn't give you more time—it just moves the problems to later in the process when they're harder and more expensive to fix.
For near-retirees with complex tax situations, the rush to file by early February often reflects anxiety rather than strategy. You've spent decades building your wealth. Take the time to protect it with thoughtful, complete tax preparation.
Your CPA will give you better service in late March than in early February. Your tax software will have fewer bugs. The IRS will have clearer guidance on new provisions. And you'll have complete information to make strategic decisions.
Questions to Ask Your Tax Advisor
When you meet with your tax professional, these questions can help ensure you're taking the right approach:
- "Based on my situation, do you recommend filing in February or waiting until we have all forms?"
- "What's your typical timeline for clients with complexity similar to mine?"
- "Are there any end-of-quarter tax planning moves we should consider before filing?"
- "Should we file an extension to ensure thoroughness?"
- "How will the new 2026 tax changes affect my specific situation?"
- "What's your process for handling corrected forms if I file early?"
- "Based on this year's return, what should I change about my withholding for 2026?"
A good tax advisor will appreciate these questions because they show you understand that tax planning is strategic, not merely clerical.
The Bottom Line
Should you file your taxes early in 2026? For most near-retirees with complex financial situations, the answer is no.
The benefits of early filing—faster refunds and identity theft protection—matter less when you:
- Typically owe taxes rather than getting refunds
- Have investment and business income that generates late or corrected forms
- Need time to make strategic decisions about IRA contributions, Roth conversions, or other planning moves
- Want your tax professional's best work rather than their rushed attention
Instead of asking "how early can I file?", ask "when will I have complete information to file accurately?"
For some, that's February. For others, it's April. And for some with truly complex situations, it's October after filing an extension.
There's no trophy for filing first. There is a reward for filing thoughtfully.
Looking for personalized guidance on your tax and retirement planning strategy? Visit Mayfair Financial to learn more about comprehensive, tax-smart retirement planning.
The content is developed from sources believed to provide accurate information. The information in this material is for educational purposes only and is not intended as tax, investment, or legal advice. It may not be used to avoid any federal tax penalties. Please consult legal, investment, or tax professionals for specific information regarding your situation. Mayfair Financial and FMG Suite developed and produced this material to provide information on a topic of interest. FMG is not affiliated with the named state-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.