Your Taxes Are Filed. Here’s What to Do Next.

Tax season is nearly over. Most people file, deal with whatever the return brought, and move on until next year. That makes sense — tax season is exhausting, and the relief of finishing it is real.

But the weeks right after filing are one of the best opportunities for financial planning all year. Your numbers are fresh. You know exactly what you earned, what you paid, and where the gaps are. Acting on that information now can make a meaningful difference in how the rest of 2026 plays out.

Here is where to focus.

What Your Tax Return Just Showed You

Your tax return is more than a document you file with the IRS. It is a financial snapshot — a clear picture of last year that points directly at what needs to change.

Three numbers are worth reviewing right now:

1. Your effective tax rate. This is the actual percentage of your income that went to federal taxes. It differs from your marginal rate, which applies only to your last dollar of income. If your effective rate surprised you, that is worth understanding before you file again.
2. Your adjusted gross income (AGI). AGI drives a lot of decisions: IRA contribution eligibility, deduction phase-outs, and eventually Medicare premium surcharges in retirement. This number matters more than most people realize when it comes to mid-year financial planning.
3. Your refund or balance due. A large refund or an unexpectedly large tax bill both signal the same thing — your withholding is not well-calibrated for your actual situation. Either one deserves attention before the year moves on.

The Real Cost of a Large Refund

A big tax refund feels like found money. But here is what actually happened: you sent the IRS more money than you owed throughout the year, interest-free, and they held it until spring.

That money could have been growing in a high-yield savings account, contributing to your retirement plan, or paying down debt across those twelve months. Getting it back in April does not recover what it could have earned — or saved you in interest — while it was in the IRS’s hands.

The goal when adjusting your tax withholding for 2026 is calibration. You do not want to owe a large amount at filing, and you do not want to receive a large refund. A small refund or a small amount owed means you are close to the mark.

A few ways to adjust:

• W-2 employees: Update your W-4 with your employer. It takes about fifteen minutes and takes effect on your next paycheck.
• Self-employed or investment income: Review your estimated tax payment schedule now to get ahead of the next quarterly deadline.

If your 2025 refund was significantly above $1,000, it is worth a conversation about what adjustment makes sense for the rest of this year.

Reviewing Your Retirement Contribution Pace

April is a practical time to check how your retirement contributions are tracking — and whether your current pace still matches your goals.

2026 contribution limits:

• IRA: $7,500 under age 50 | $8,600 age 50 and older
• 401(k) and similar employer plans: Limits are substantially higher — if you are not maxing out, look at whether your budget supports an increase now

Even a modest increase adds up meaningfully over time, especially for mid-career professionals where catch-up contributions and compounding both work in your favor.

A few situations worth flagging based on what your return showed:

• If your income increased in 2025, you may have crossed the Roth IRA income phase-out threshold. That does not necessarily close the door on Roth access. A backdoor Roth strategy may still be available, but it requires careful sequencing — worth discussing with your advisor before acting.
• If your income decreased, you may now qualify for deductions or credits you did not have access to before. Knowing where you landed helps you plan the rest of 2026 more deliberately.

Building a Tax Strategy for the Rest of 2026

Post-tax season financial planning is not just about correcting what happened last year. It is about positioning yourself better for this one. A few areas deserve attention while the numbers are fresh.

Tax-Loss Harvesting

If you hold investments that have declined in value, selling them at a loss may allow you to offset taxable gains elsewhere in your portfolio. With market volatility in 2026 affecting many portfolios, this is a particularly relevant mid-year conversation. Waiting until year-end means competing with everyone else who had the same idea.

Charitable Giving Strategy

If you made charitable contributions last year without a clear plan, now is a good time to think through your approach. Donor-advised funds, appreciated asset donations, and qualified charitable distributions for those age 70½ or older each carry different tax treatment. A little structure here goes a long way when year-end arrives.

Roth Conversion Planning

If your income is lower this year than you expect it to be in future years, a partial Roth conversion may make sense. Converting pre-tax retirement dollars to Roth while in a lower bracket reduces your future tax burden. The amount and timing both matter — this is a strategy best modeled before acting.

Required Minimum Distributions

If you are 73 or older, RMDs are a year-round planning consideration. Getting clear on your distribution strategy in spring — rather than in December when options narrow — gives you more flexibility. Charitable giving can also satisfy your RMD requirements through a qualified charitable distribution.

What to Do About Market Volatility Right Now

If you have been watching your portfolio more closely than usual lately, you are not alone. Market volatility in 2026 has made a lot of investors question whether they should make a change.

The research on this is consistent: investors who stay fully invested through volatile periods significantly outperform those who step out and try to time their way back in. The best market days tend to cluster near the worst ones. Missing a handful of them can substantially reduce long-term returns. According to J.P. Morgan Asset Management, seven of the ten best market days over a recent twenty-year period happened within two weeks of the ten worst days. Chris walks through this data in detail here.

What is worth doing right now: confirm that your current allocation still fits your actual timeline and your genuine risk tolerance. A 55-year-old heading toward retirement in ten years should be invested differently than someone with twenty-five years ahead. If recent market swings have caused real stress, that is important to note — it may mean your allocation was more aggressive than you are truly comfortable with.

Three reasons it is reasonable to adjust:

• Your retirement timeline has shifted significantly
• A major life change has occurred (job change, inheritance, marriage, divorce)
• Your allocation has drifted and one asset class now dominates more than intended

Reacting to headlines is not a strategy. A mid-year financial review is a good opportunity to tell the difference.

Source: J.P. Morgan Asset Management via CNBC

Raymond James and its advisors do not offer tax advice. You should discuss any tax matters with the appropriate professional. This material is being provided for informational purposes only and is not a complete description, nor is it a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Past performance may not be indicative of future results.