- - 5 Things To Do in February To Lower Your Tax Bill This Year

Laura BogartFebruary 14, 2026 at 9:05 AM

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February is a busy month. You’re still working on your New Year’s resolutions. Planning Valentine’s Day celebrations. Shoveling snow. Starting to prepare for tax season — or, if you’re not, you should be. Though Tax Day isn’t until April, there’s a lot you can do in February to help lower your bill or avoid costly surprises.

You might be surprised to learn that taking certain steps now — not March or even April — can reduce your tax burden in the near future. MoneyLion spoke with Brian Zink, CEO and founder of No Upfront Tax Relief, to learn exactly what you should be doing in February to lower your tax bill.

1. Fix Potential Problems Early

If you start preparing your taxes in February, time is on your side. Instead of rushing to meet the deadline or stressing about filing an extension, you’ll have breathing room to ensure everything is accurate and that you’re claiming all eligible credits and deductions.

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Think of it this way: When you’re stressed, you’re more likely to miss the Child Tax Credit or forget to deduct home office expenses if you qualify.

“At No Upfront, we encourage starting in February to give yourself enough time to fix problems before filing deadlines,” Zink said. “When clients wait until the last minute, it limits strategic options, and planning turns into damage control.”

Starting early also gives you time to correct errors on forms such as a W-2 or 1099 before you file, which can help you avoid amended returns and penalties.

2. Adjust W-4 Withholding

Did you owe taxes last year? Receive a larger refund than expected? Zink says February is a prime time to address those issues by adjusting your W-4 form. If you’ve experienced major life changes since last year, you should update your W-4 as well.

“Life changes during the year should prompt a review to avoid under- or over-withholding,” he said. “These changes include changing jobs and getting married or divorced.”

Updating your Form W-4 now won’t change last year’s tax bill, but it can help you avoid owing money — or overpaying — when you file next year.

3. Use Last Year’s Return To Play Detective

Last year’s tax return may feel like old news, but it can be a valuable tool for improving this year’s outcome. Review it closely to see what you might do differently.

“We advise clients to compare total tax owed with total withholding,” Zink said. “Under-withholding will likely lead to owing. Over-withholding will likely result in a large refund.”

You should also review which credits and deductions you claimed and which ones you may have missed, so you can plan ahead and keep better records this year.

4. Track Deductible Expenses

Tax time can be especially stressful for freelancers and gig workers. Zink says many worry about unpleasant surprises when they file. Fortunately, there are steps they can take in February to stay ahead.

“We advise clients to set aside 25% to 30% of their net income for taxes and track deductible expenses,” he said. “They can also review last year’s net income to calculate estimated quarterly payments.”

Freelancers generally must make estimated tax payments four times a year, and the first payment for the current tax year is typically due in April. Getting organized in February can make those deadlines easier to manage and help avoid penalties.

5. Keep Funding Important Accounts

Zink reminds clients that traditional IRAs and health savings accounts (HSAs) can be funded until the tax filing deadline for the prior year. However, eligibility and income limits apply.

Funding deadlines differ for HSAs and flexible spending accounts (FSAs).

“Contributions to an HSA are usually allowed until the prior year’s filing deadline,” he said. “FSA contributions generally must be made during the plan year, although some plans allow limited grace periods or carryovers.”

Making eligible contributions before the tax filing deadline can reduce your taxable income for the prior year, which may lower the amount you owe or increase your refund.

The Bottom Line

February isn’t just another winter month — it’s an opportunity to get ahead on your taxes. Use the time to reduce mistakes, maximize credits, fund key accounts and adjust your withholding. You’ll be glad you did.

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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Source: “AOL Money”