4 Tax Moves Middle-Class Households Should Make Before Filing in 2026
If tax time isn’t exactly the most wonderful time of the year, it’s certainly one of the busiest for middle-class families. Between gathering documents, scheduling appointments and preparing questions, households already have plenty to manage. It can be hard to know which tax moves will make a meaningful difference this year.
To help the average middle-class household prepare before firing up tax software or visiting an accountant, MoneyLion spoke with J.R. Faris, president and CEO of Accountalent.
Here are four tax moves that can go a long way toward increasing deductions or credits — and avoiding common pitfalls.
Don’t Focus on Refunds
Though many people view a tax refund as a pot of gold at the end of the tax rainbow, that mindset may not serve them well. Several experts describe hefty refunds as essentially getting your own money back after giving the U.S. government an interest-free loan for a year.
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That’s why Faris says middle-class families should adopt a philosophy of “no refunds later, but withhold early.” He adds that most families wait until filing season to address withholding, but by then it’s too late.
“In our work, we see paychecks thrown out of whack after raises or side income. Then comes April,” he said. “That’s why we’re pushing a midyear paycheck review. It fixes the cash flow now, reduces surprises and is human. I’ve seen families sleep better in a matter of weeks (true story).”
Before filing in 2026, review your most recent pay stubs and consider adjusting your Form W-4 if your income changed in 2025. That move can help you avoid an unexpectedly large bill — or an oversized refund — next year.
Be Aware of Key Deadlines
Faris sees a common error every filing season: People assume the window to make important decisions or transfers closes on Dec. 31. It doesn’t. He’s particularly frustrated when families miss out on IRA contributions — which remain open until the filing deadline — because no one reminds them.
“We see refunds jump after late funding of the IRA because income numbers finally settle down,” he said. “That timing helps.”
He adds that Health Savings Account (HSA) funding works the same way — a fact that catches many people off guard.
“If you had changed jobs or insurance halfway through the year, final income comes late,” he said. “That’s why there is still a bit of room for action in early 2026 if the paperwork remains open.”
For the 2025 tax year, eligible taxpayers can generally make IRA and HSA contributions until the April 2026 filing deadline. Knowing that timeline can create an opportunity to lower your taxable income at the last minute.
Know What Extensions and Cutoffs Actually Mean
Another move Faris wants to see middle-class families embrace: Stop confusing extensions with additional time to pay.
“That mistake gets expensive fast,” he said. “An extension brings nothing but an additional wait for forms, and penalties begin anyway.”
It’s important to understand that a tax extension gives you more time to file — not more time to pay. Interest and potential penalties can apply to any unpaid balance after the original filing deadline.
He’s also seen certain cutoffs — specifically around retirement accounts — trip people up. A reminder: Different accounts use different calendars, yet too many people assume they operate the same way.
“Missed deadlines are almost always due to assumptions, not carelessness,” he said.
Don’t assume anything about what extensions, cutoffs or deadlines mean. Do your research, ask the right questions and get the facts.
Don’t Get So Overwhelmed You Miss Out on Credits
Managing tax forms can be overwhelming. Faris understands. But he still sees families get so flustered that they don’t pause to learn more about key tax credits.
“In my experience, the child credit still drives refunds more than people would believe, but errors wipe it out fast,” he said. “Income limits change silently, and the paperwork is what it’s all about.”
Faris added that many people are surprised to learn they may qualify for energy credits if they make a few small adjustments. Home upgrades can count — but only if they’re completed on time and homeowners keep receipts.
“We go over proof a lot, and lost documents wipe out savings households counted on,” he said.
Before filing, double-check eligibility rules, confirm income thresholds and make sure you have documentation in hand. A missed credit can cost far more than the time it takes to verify the details.
The Bottom Line
For many middle-class households, filing taxes is just another task to check off — between shuttling kids to activities, managing care for aging parents and trying to maintain work-life balance — but it requires time and attention. Knowing which credits are available, understanding deadlines and extensions, and planning withholdings wisely can save money and reduce costly mistakes.
Making a few proactive moves before filing in 2026 can be the difference between leaving money on the table and filing with confidence.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
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