Planning Priorities: Income management, investment decisions, retirement savings, deductions, and new individual tax provisions.
2026 Legislative Emphasis: Expanded SALT deduction limits, new limitations on certain itemized deductions, charitable deduction changes, and eligibility for the OBBBA’s new individual deductions.
- Project 2026 adjusted gross income and federal and state income tax liability.
- Evaluate tax bracket management and potential income acceleration or deferral.
- Review traditional IRA, Roth IRA, 401(k), and other retirement contributions.
- Consider Roth conversions and the resulting federal and state tax impact.
- Review required minimum distributions (RMDs) and qualified charitable distributions (QCDs).
- Harvest investment losses where appropriate, while avoiding wash-sale violations.
- Evaluate capital gains recognition, including the 3.8% net investment income tax.
- Review charitable giving strategies, including donor-advised funds and appreciated securities.
- Evaluate itemized deductions, including the expanded state and local tax (SALT) deduction and applicable income limitations.
- Review eligibility for deductions related to qualified overtime compensation, qualified tips, qualifying vehicle loan interest, and the additional senior deduction.
- Review education tax credits, dependent-related benefits, and eligible education savings accounts.
- Evaluate withholding and fourth-quarter estimated tax payments to minimize penalties.