Still finishing your 2025 taxes? October brings an important filing deadline—and the beginning of a critical year-end tax planning period for individuals, self-employed taxpayers and business owners.

For taxpayers who timely requested an extension for their 2025 individual federal income tax return, October 15, 2026 is the extended filing deadline. The IRS confirms that an extension provides additional time to file but does not provide additional time to pay taxes that were originally due in April.

At TaxPlus, October also marks the transition from completing extended 2025 filings to helping clients evaluate opportunities before the end of the 2026 tax year.

What Is the October 15, 2026 Tax Deadline?

Individual taxpayers who timely filed Form 4868 generally received an automatic extension through October 15, 2026 to complete their 2025 federal income tax return.

If you’re still on extension, don’t assume that having an extension means there is nothing left to address until October 15. Tax documents still need to be collected, returns prepared and reviewed, and any outstanding tax balance evaluated.

An extension of time to file is not an extension of time to pay. Taxes owed for 2025 were generally due April 15, 2026. Filing sooner may therefore be important if you have an outstanding balance that could continue to accrue penalties or interest.

The September 15 Deadline Has Already Passed

September 15, 2026 was another important date for taxpayers and business owners.

Calendar-year S corporations filing Form 1120-S and partnerships filing Form 1065 that timely requested six-month extensions generally had an extended filing deadline of September 15, 2026. September 15 was also the third estimated-tax payment deadline for individuals making 2026 estimated payments.

If you missed a filing or estimated-payment deadline, contact a tax professional promptly rather than waiting until year-end.

2026 Year-End Tax Planning Begins in October

Once the October filing deadline passes, attention should turn toward 2026 year-end tax planning.

TaxPlus will formally focus on year-end planning from October 16 through December 18, 2026. The objective is to identify relevant planning opportunities while there is still time to take action before December 31.

For business owners, self-employed professionals, families and higher-income taxpayers, waiting until tax preparation begins in 2027 may mean certain opportunities are no longer available.

Important Tax Changes to Understand When Filing Your 2025 Return

Several federal tax changes affect 2025 returns and can also inform future tax-planning conversations.

Higher SALT Deduction Limit

For tax year 2025, the federal deduction limit for qualifying state and local taxes increased to $40,000, or $20,000 for married taxpayers filing separately.

The maximum deduction begins to decrease for taxpayers with modified adjusted gross income above $500,000, or $250,000 for married filing separately, and cannot be reduced below $10,000 or $5,000 respectively.

For taxpayers in higher-tax states such as California, the change may make itemizing deductions more attractive depending on mortgage interest, charitable contributions and other deductible expenses.

New Deduction for Qualified Overtime

Eligible workers may deduct up to $12,500 of qualified overtime compensation, or as much as $25,000 for qualifying married couples filing jointly.

The deduction applies to qualified overtime compensation—not necessarily the employee’s entire overtime paycheck—and income limitations and other requirements apply.

New Deduction for Qualified Tips

Certain employees and self-employed individuals who receive qualified tips may be eligible for a deduction of up to $25,000.

Eligibility depends on factors including the type of occupation, the nature of the tips received, filing status and modified adjusted gross income.

Qualified Car Loan Interest

For tax years 2025 through 2028, qualifying taxpayers may be able to deduct up to $10,000 of qualified passenger vehicle loan interest.

Among other requirements, the vehicle generally must be new, purchased for personal use, secured by a qualifying loan and have final assembly in the United States. Income limitations apply.

Enhanced Deduction for Seniors

Taxpayers age 65 or older may qualify for an additional deduction of up to $6,000 per eligible person, or up to $12,000 when both spouses filing jointly qualify.

The deduction is available to eligible taxpayers whether they itemize or claim the standard deduction, although income limitations apply.

2025 Standard Deduction Amounts

For 2025 returns, the standard deduction is $31,500 for married couples filing jointly, $15,750 for single taxpayers and married taxpayers filing separately, and $23,625 for heads of household.

Whether it makes more sense to claim the standard deduction or itemize depends on your individual circumstances.

Year-End Planning for Business Owners

Business owners should use the final months of 2026 to review income, expenses, projected taxable income and potential year-end transactions.

One area worth discussing is depreciation. Current federal rules generally allow a 100% additional first-year depreciation deduction for certain qualifying property acquired and placed in service after January 19, 2025, although qualification depends on the property and transaction.

A year-end review can also examine retirement contributions, qualified improvement property, charitable giving, business expenses, payroll considerations and other strategies based on the company’s structure and financial position.

The important distinction is that these strategies should be evaluated before transactions are completed, not retroactively assumed to qualify when preparing a tax return.

Should Business Owners Put Family Members on Payroll?

Employing family members can create legitimate business and tax-planning opportunities, but the rules are more nuanced than simply putting a child or parent on payroll.

For example, the federal employment-tax treatment of wages paid to a child depends on the child’s age and the legal structure of the business. In a parent’s sole proprietorship or a partnership where each partner is the child’s parent, wages paid to a child under 18 generally aren’t subject to Social Security and Medicare taxes, while FUTA treatment uses a different age threshold. Corporations follow different rules.

Any family member receiving wages must perform legitimate work and compensation should reflect the services being provided.

Charitable Giving and Itemized Deductions

Taxpayers who may itemize should maintain good records for qualifying charitable contributions.

The increased 2025 SALT limitation may cause some taxpayers who previously used the standard deduction to revisit whether itemizing produces a better result. Charitable contributions, mortgage interest, qualifying state and local taxes and certain other deductible expenses may factor into that analysis.

Documentation matters. Keep receipts, acknowledgement letters and records supporting both cash and eligible non-cash contributions.

Don’t Wait Until December to Begin Tax Planning

Effective tax planning works best while there is still time to change the outcome.

For some taxpayers, year-end planning may involve reviewing withholding or estimated payments. For others, it may involve business purchases, retirement contributions, charitable giving, income timing or evaluating how recent tax-law changes apply to their situation.

The appropriate strategy is highly individual.

Start Your TaxPlus Review

If your 2025 return is still on extension, contact TaxPlus now to complete the filing process.

If your 2025 return is complete, October is also an ideal time to begin discussing your 2026 year-end tax strategy.

Los Angeles Office
310-398-3231
May@taxplus.com

San Diego Office
858-279-1640
Ashley@taxplus.com

TaxPlus works with clients both in person and remotely by phone or video conference.

Returning tax clients may also request a customized tax organizer containing prior-year information to help streamline the preparation process.

Schedule your TaxPlus tax planning consultation today.

This article provides general tax information for educational purposes and does not constitute individualized tax, legal or financial advice. Tax rules, eligibility requirements and deadlines may vary based on individual circumstances and entity structure.