Wait on Filing Those Taxes!

Don't File Those Taxes Quite Yet

Village Road by Cass Grange

February 2026

Greetings!

Even if you have all of your tax forms, our recommendation is that you hold off on filing your taxes. Custodians (such as Fidelity) have released initial tax forms for all accounts, but as they receive corrections, they may issue amended forms. While the changes are often small, our recommendation is to wait until early March to file in order to avoid having to file an amended tax return. Your tax preparer can prepare the return now, just wait a few more weeks to file.

Speaking of taxes, we understand that many of your tax preparers do not have the capacity to do tax planning, and we are here to help! The Watercolor Financial team made an investment in both technology and training over the past three years so that we can help you recognize tax planning opportunities. Once you file your taxes, please securely upload your tax return using this link. Roth conversions, charitable giving, and retirement plan contributions are just some of the areas of opportunity that are easy to overlook. We look forward to helping you with this important task!

The deadline to file your 2025 federal income tax return is April 15, 2026. Taxpayers must pay any taxes owed by this date to avoid penalties. You receive an automatic extension to file your return to October 15, 2026, but it does not extend the time to pay.

Key 2025 Tax Return Dates (Filed in 2026):

Late January 2026: IRS begins accepting 2025 returns.
April 15, 2026: Deadline to file returns and pay taxes.
October 15, 2026: Final deadline for those who have not already filed.

Important Information:

Extensions: File Form 4868 by April 15, 2026, to get an automatic 6-month extension, but remember that taxes owed must still be paid by the April date to avoid penalties.

Where to find your Tax Forms:

Fidelity Investments typically provides consolidated 1099 tax forms (including 1099-DIV, 1099-INT, 1099-B, 1099-MISC) by late January to mid-February, covering investment income, sales, and dividends. These forms are available online under "Accounts & Trade" > "Tax Forms & Information". Nonretirement account tax information can be directly imported into major tax software.

Here is a guide to over 800 IRS Tax Forms: https://www.fidelity.com/tax-information/guide-for-tax-forms

Watercolor Financial does not provide tax preparation services. This information is for general educational purposes only and is not intended as tax or legal advice. Tax laws are subject to change and individual circumstances vary. Please consult your tax professional regarding your specific situation.

Tips for Sharing Love and Money: Okay, this more about the money-side of love…

Schedule regular money meetings — monthly mini-checks and an annual deep dive to stay aligned.
Share full financial snapshots — income, debts, assets, and recurring expenses upfront. No big surprises.
Agree on short- and long-term goals — prioritize emergency fund, debt payoff, home, retirement. Work together.
Choose a system that fits you — joint accounts, separate accounts + shared pot, or a hybrid.
Define roles and backup plans — who pays bills, tracks investments, and how to step in if the primary is unavailable.
Automate savings and bills — reduce friction and avoid late fees or missed contributions.
Create a conflict protocol — pause, use “I” statements, return later, or bring in a neutral third party.
Protect each other — maintain individual ID and credit monitoring, and keep key documents accessible.
Plan for life changes — revisit budgets and goals after job changes, children, relocation, or health events.
Use tools wisely — shared budgeting apps, simple spreadsheets, and calendar reminders for reviews.
Celebrate milestones — acknowledge paid-off debts and savings targets to reinforce teamwork.

Tip: When meeting with us, ask for help to resolve sticking points. There are many ways to navigate money. We have practical advice you can try. We want to help.

Watercolor Wins!

After 25 years as a lawyer, our client, Brooke Hardie, founded Life Is Legal, a platform where real-life law gets explained for non-lawyers in bite-sized, entertaining pieces, through stories, podcasts, and everyday moments. Legal issues touch everyday life, from relationships and money to work, health, and aging.

Most people are left to navigate them without a roadmap. It’s legal education without the jargon or lectures...just honest conversations about how the law shows up in real life.

Click here to subscribe to the podcast and sign up for the newsletter.

Watercolor Financial is not affiliated with Brooke Hardie, Life Is Legal, or any related podcast, newsletter, or platform. The inclusion of this content is for informational purposes only and does not constitute an endorsement, recommendation, or testimonial by Watercolor Financial. Watercolor Financial has not independently verified the information contained in the referenced materials and makes no representations regarding their accuracy or completeness. Any views or opinions expressed are solely those of the third party.

Access your reports - Visit our web page for links to Fidelity (for access to statements and tax documents) and to the Orion portal (for access to performance reports and billing statements): Watercolor Financial website.

Q1 2026: Quarterly Market Guide

Please review this quarter's market guide by clicking on the painting. We encourage all of our clients to review the market guide written by Rafael Villagran, CIO of Genesia Investments and investment consultant for Watercolor Financial.

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