January is an interesting time of year for taxes.

It is the start of a new tax year, W-2s and 1099s are starting to appear, and many taxpayers feel a sense of urgency—“Is it too late to do anything?” There is often confusion about what tax decisions are already past us and where there may still be opportunities to plan.

The good news: January is not too late for everything.
The reality: Timing for some actions have passed—and that’s okay.

Here’s a clear breakdown of what’s fixed, what’s flexible, and where it may still make sense to take action.

What’s Already Locked In for Your Tax Return

Once the year ends, several core components of your tax return are final. No amount of January scrambling can change these items—and understanding that can actually reduce stress.

Your Income Is Set

Your wages, self-employment income, retirement distributions, bonuses, and investment income earned during the year are what they are. You can’t shift income between years after December 31.

This is often where frustration comes from: “If only I had known earlier…”
That realization is valuable—but it’s more useful for next year’s planning, not beating yourself up in January.

Timing-Based Deductions Are Closed

Expenses tied to when they were paid—such as charitable contributions, medical expenses, or business costs—generally can’t be moved into the prior year once the calendar closes.

If the check wasn’t written or the charge didn’t hit in time, it won’t count for that tax year.

What’s Still Available in January (and Beyond)

Here’s where January still offers meaningful opportunities—especially if you work with a CPA who looks beyond simply “filling in the forms.”

Retirement Contributions (Big One)

Many retirement contributions can still be made after year-end:

• Traditional and Roth IRAs (subject to income limits)
• SEP IRAs (for business owners)
• Solo 401(k)s (contributions may still be available, depending on setup)

These contributions can directly reduce taxable income or create long-term tax benefits—and they’re often one of the most impactful January decisions. IRA contribution deadline is generally April 15.

Health Savings Account (HSA) Contributions

If you were eligible for an HSA during the year, you can still make contributions well into the following year and deduct them on your return.

HSAs are one of the most tax-efficient tools available, yet they’re frequently underused.

Certain Business Elections and Strategy Decisions

While the income itself is locked in, how it’s reported may still require thoughtful analysis:

• Entity classification elections
• Depreciation methods already available
• Accounting method considerations
• Allocation of business expenses

These aren’t DIY decisions—and January is often when they’re evaluated properly.

What January Is Really Good For: Clarity and Planning

Even when changes can’t be made retroactively, January is incredibly valuable for:

Understanding Why Your Tax Result Looks the Way It Does

If you owe more than expected—or received a smaller refund—there’s usually a reason:

• Withholding didn’t keep up with income changes
• Bonus or investment income wasn’t taxed evenly
• Side income created unexpected tax exposure

Identifying the “why” now prevents surprises next year.

Setting Up Better Outcomes Going Forward

January is an ideal time to:

• Adjust payroll or retirement withholding
• Revisit estimated tax payments
• Plan retirement contributions intentionally
• Coordinate tax strategy with business and investment decisions

Tax planning works best before December—but January is when smart planning often starts.

If you’re feeling behind in January, you’re not alone—and you’re not out of options.

Some tax moves are time-sensitive. Others are still very much available. And often, the most valuable outcome of January isn’t changing last year’s tax result—it’s making sure the next one is better.

If you have questions about what still applies to your situation, or whether proactive planning makes sense this year, we’re happy to help you sort through it calmly and clearly.

Tax season doesn’t have to be stressful—and it shouldn’t be reactive.

Contact us to learn more about Rose Group CPAs.