If you’re like me, January is that weird month where the holiday highs wear off and are replaced by a growing pile of tax forms from three different countries. It’s usually when "I’ll do it later" turns into "where on earth did I put that PDF?"

This month’s newsletter focuses on helping you prepare better for tax season, eliminate unexpected "surprises," and make tax season actually boring.

As always, please share your feedback directly with me or if you want to see any other topic being covered.

🇺🇸 US Expats: The Rules are Shifting

1. IRS Direct File is taking a break:

   The Direct File pilot program has been discontinued for the 2026 filing season.

   • Action: Check your eligibility for IRS Free File (available if your income is below $84,000) or select a professional tax preparer who specializes in foreign exclusions and credits.

   • Links: IRS Free File Search Tool | Directory of Federal Tax Return Preparers

     
     

2. Paper checks are (finally) dying:

   The IRS began phasing out paper refund checks on September 30, 2025, to combat fraud and mail theft.

   • Action: Log in to your IRS Online Account to ensure your US bank routing and account numbers are correct to avoid your refund getting stuck in "limbo."

   • Links: Access your IRS Online Account | Direct Deposit Guide & FAQ

     
     

3. Get an IP PIN:

   Tax identity theft is a major headache for expats. An Identity Protection PIN adds a "deadbolt" to your filing by requiring a 6-digit code known only to you and the IRS.

   • Action: Enroll in the IP PIN program online via ID.me. Once you opt-in, remember to retrieve your new PIN through the portal every January.

   • Link: Apply for your Identity Protection PIN (IP PIN)

🇪🇺 EU Expats: Foreign Assets Watch (Example: Spain)

1. Spain’s Modelo 720:

   If you are a tax resident in Spain with over €50,000 in assets abroad, you must file this return by March 31, 2026.

   • Action: Check whether you cross the reporting threshold for foreign assets. If you do, sort your account statements and year-end values now.

   • Links: Submit Modelo 720 (Official AEAT Portal)

🇨🇦 Canadian Expats: The RRSP Sprint

1. The RRSP Deadline:

   March 2, 2026, is the final day to contribute to your RRSP to reduce your 2025 taxable income.

   • Action: Check your RRSP Deduction Limit via CRA My Account to avoid the 1% monthly over-contribution penalty.

   • Links: CRA My Account | RRSP Limits & Rules

     
     

2. Filing vs. Payment:

   Most Canadians must file and pay by April 30, 2026. Self-employed filers have until June 15 to file, but interest on any balance starts accruing on April 30.

   • Action: Use NETFILE-certified software for electronic submission; it's much faster than international mail.

   • Links: CRA Certified Software | CRA Payment Options

   
   

🗓️ The "Save Your Sanity" Cheat Sheet

🛠️ The 15-Minute Tax Sprint

Do these today so you don't spend a Saturday doing them in April.

1. Create the "2025 Tax" Folder: Drop your W-2s, 1099s, P60s, or T4s here as soon as they arrive.

2. Screenshot your Max Balances: For FBAR (US) or foreign reporting, you’ll need the highest balance of your foreign accounts in 2025. 

Tip: Log in to Aequify, connect your accounts, and get your highest balances instantly without scrolling through months of statements.

3. Check for "Ghost" Subscriptions: Taxes are a great time for a financial clean-up. Use Aequify to scan your recurring transactions and cancel that streaming service you haven't watched since 2024.

🚀 What we've been up to

We have been busy building tools that take the "heavy lifting" out of your tax season. Here’s what’s new:

1) Smart Personalized Category Rules

Set a simple rule in seconds and see all future transactions categorized your way.

• “Anything from Wise is an FX Transfer”

• “Anything from Delta is Travel”

Simply go to the 'Transaction' page, click three vertical dots against each transaction, make changes you need and select 'Create Smart Rule'. All your future transactions will be categorised accordingly. You can review and edit all your rules in the settings section. 

🔍 Coming in Jan 2026: 

1) Aequify Tax Consultant Marketplace is coming

Finding an expat tax pro who doesn't cost a fortune is hard. We reviewed over 100 international consultants and handpicked a few who are trusted, experienced, and reasonably priced.

• The Aequify Advantage: If you work with one of our pros, you can securely share your financial data with one click—no more manual spreadsheets or long, repetitive forms. 

• Have a pro you trust? Reply to this email and we'll vet them for the marketplace.

2) Investment and pension accounts coverage

We are working to expand EU coverage, including more investment and pension accounts, so your net worth picture is more complete.I will share more details soon.