Year-End Tax Planning Checklist for 2026

Tax season is months away, but most of the choices that shape your 2026 return have to be made before January 1. Here is a short checklist of the areas worth a look, with the 2026 numbers you need.

1. Standard deduction or itemizing?

For 2026 the standard deduction is $16,100 for single filers and married people filing separately, $24,150 for heads of household, and $32,200 for married couples filing jointly.

Add up what you could itemize (state and local taxes, mortgage interest, charitable gifts, medical costs over the threshold) and compare. This year the math may come out differently than it has in the past, because the cap on state and local tax deductions is much higher (see below).

If you’re in the top 37% bracket, note that a new limit also trims the value of itemized deductions to 35 cents on the dollar starting in 2026.

2. Check your state and local tax (SALT) deduction

The SALT cap is $40,400 for 2026 ($20,200 if married filing separately). It covers property taxes plus either state income tax or sales tax. The cap shrinks by 30% of income above $505,000, but never below $10,000. The higher cap runs through 2029 and then drops back to $10,000 in 2030.

If your SALT total is under the cap, paying a bill before year end may increase your deduction. Property taxes that have already been assessed and state estimated tax payments are the usual candidates. Don’t prepay anything that hasn’t been assessed, and check with us before you do.

3. Rethink your charitable giving

Two rules changed in 2026:

If you don’t itemize, you can deduct up to $1,000 of cash gifts to qualifying charities ($2,000 for joint filers). Gifts of goods don’t count, and donations to donor-advised funds are generally excluded.
If you do itemize, only the part of your giving above 0.5% of your adjusted gross income is deductible.

That second rule makes “bunching” worth considering: giving two years’ worth of donations in one year, so you clear the floor and the standard deduction in the same year. Keep receipts for everything.

4. Look at your investments

If you have losses in a taxable account, selling before year end can offset gains you’ve already realized. If losses are larger than gains, up to $3,000 can be deducted against other income ($1,500 if married filing separately), and the rest carries forward.

Two cautions:

The wash-sale rule. If you buy the same or a substantially identical investment within 30 days before or after the sale, the loss is disallowed for now.
The 3.8% net investment income tax applies when modified adjusted gross income passes $200,000 (single) or $250,000 (joint). These thresholds aren’t indexed for inflation, so more people owe it each year. Harvesting losses can help.

5. Use your retirement plan

Contributions made through payroll reduce your taxable income and can lower your adjusted gross income, which matters for several deductions that phase out. Our post on increasing your 401(k) before year end covers the 2026 limits.

6. Mind the calendar

Most of these moves must be completed by December 31. Payroll changes, in particular, can take a pay period or two to take effect, so don’t wait for the last week.

Want a second set of eyes?

A short planning call can show whether any of this applies to you. Book a call with FlowTex.

Sources

This article is general information, not tax or legal advice. Your facts and state rules can change the answer. Talk to a qualified professional before acting.