6 Smart Tax Strategies

Pure’s Tax Planner, Frank Haney, CPA, shares six smart tax strategies designed to help you feel more prepared for your tax filing.

Transcript

We all know that filing your tax return can be stressful, confusing, and a headache at best. So here are six smart strategies to make this filing year easier.

1. Tax Filing Options ¹ 

Determine which filing method is best for you. While we at Pure always recommend working with A CPA to file your tax returns, for many taxpayers, this may be too costly for simple returns.

For a free option, the IRS allows for free federal return filing for those with an AGI of less than $89,000 using their partner program.

2. New Deductions for 2025 ²

There are new deductions to claim in 2025 that weren’t available before. The One Big Beautiful Bill Act, or OBBBA, introduced many new deductions in 2026.

Due to the timeliness of the bill, many of these deductions will need to be manually calculated and included on your tax return. There are four deductions that can fit this description.

Number one: overtime. Number two: tips. Number three: new car loan interest. And number four: the new senior deduction.

These deductions will be reported on the new Schedule 1-A. The maximum tip deduction is $25,000 per return, while the maximum overtime deduction for one person is $12,500. For a new car loan, the interest deduction is $10,000 per tax return, regardless of filing status, and only applies to the purchase of new cars assembled in the United States.

The senior deduction can be calculated with information found on your tax return, and is a maximum of $6,000 per eligible senior.

3. IRS Form 8606 ³

Don’t forget to include your Form 8606. We often recommend Roth conversions and non-deductible IRA contributions for many of our clients. If you are one such client that did one of these transactions in 2025, please make sure to include it on your IRS Form 8606 non-deductible IRAs.

You may be required to fill out part one, two, and three, depending on which IRA transactions you did in 2025. There’s a $50 penalty for not including this form with your return if required.

4. Itemizing Deductions ⁴

Don’t forget to include your itemized deductions.

With the passing of the OBBBA, the state and local tax deduction, also known as SALT, has been increased from $10,000 to $40,000 for those taxpayers with less than half a million dollars in AGI.

So make sure to include your real estate taxes, your personal taxes, along with any medical expenses and charitable contributions when preparing your tax return.

5. File Your Return Timely or File an Extension ⁵

Everyone knows that tax day is April 15th, but that’s not the last day you can file your return. You can always file for a free tax extension that allows you to file your return as late as October 15th, 2026. But this does not mean that you can wait to pay your taxes. If you are underpaid as of April 15th, you will be assessed a penalty on any outstanding balance due, regardless of extension status.

If you choose to extend, we always recommend that you include a protective payment with your extension.

6. Estimated Payments ⁶

Don’t forget to set up estimates for 2026. Many taxpayers are required to make estimated payments throughout the year. If you fit this description, make sure to calculate your safe Harbor tax estimate for 2026.

If your AGI was less than $150,000 or $75,000 for separate filers, your safe harbor estimate for 2026 is a hundred percent of your 2025 tax. For those with AGI higher than $150,000, your safe harbor estimate for 2026 is 110% of 2025 tax.

I hope these six smart tax strategies help you be more prepared for your tax filing. If you want a second set of eyes on your return, take advantage of our free tax analysis to help you find out what opportunities you may be missing.

Sources:

1. IRS. “E-file: Do your taxes for free.” February 11, 2026. irs.gov/e-file-do-your-taxes-for-free.

2. IRS. “Form 1040 Schedule 1-A.” November 4, 2025. irs.gov/pub/irs-pdf/f1040s1a.pdf.

3. IRS. “Instructions for Form 8606.” December 10, 2025. irs.gov/pub/irs-pdf/i8606.pdf.

4. IRS. “Instructions for Schedule A (Form 1040).” December 8, 2025. irs.gov/pub/irs-pdf/i1040sca.pdf.

5. IRS. “IRS reminds taxpayers an extension to file is not an extension to pay taxes.” March 28, 2022. irs.gov/newsroom/irs-reminds-taxpayers-an-extension-to-file-is-not-an-extension-to-pay-taxes.

6. IRS. “Publication 505 (2025), Tax Withholding and Estimated Tax.” [Accessed February 23, 2026].

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IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.

• Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

CPA – Certified Public Accountant is a license set by the American Institute of Certified Public Accountants and administered by the National Association of State Boards of Accountancy. Eligibility to sit for the Uniform CPA Exam is determined by individual State Boards of Accountancy. Typically, the requirement is a U.S. bachelor’s degree which includes a minimum number of qualifying credit hours in accounting and business administration with an additional one-year study. All CPA candidates must pass the Uniform CPA Examination to qualify for a CPA certificate and license (i.e., permit to practice) to practice public accounting. CPAs are required to take continuing education courses to renew their license, and most states require CPAs to complete an ethics course during every renewal period.