To Our Clients and Friends:
Get Ahead of Your 2026 Taxes
Tax season may still be months away, but now is the ideal time to start preparing for your 2026 tax return. Taking time to review your finances before year-end can help you stay organized, avoid surprises, and identify potential tax-saving opportunities.
Review Your Income and Withholding
Start by reviewing your year-to-date income and federal and state tax withholding. If your income has changed significantly from prior years because of a new job, bonus, investment income, business income, or other sources, you may want to review whether your current withholding or estimated tax payments are appropriate.
Planning ahead can help reduce the possibility of an unexpected tax balance when you file your return.
Consider Itemized Deductions
Most taxpayers will choose between taking the standard deduction and itemizing deductions. If you may benefit from itemizing, begin gathering documentation now.
Potential itemized deductions may include qualifying:
- Medical and dental expenses
- State and local taxes, subject to applicable limitations
- Mortgage interest
- Charitable contributions
- Certain other qualifying expenses
Your tax situation is unique, and not every expense is deductible. Keeping receipts, statements, acknowledgments, and other supporting documentation throughout the year can make tax preparation much easier.
Review Charitable Contributions
If you regularly make charitable donations, consider reviewing your contributions before year-end. Keep records of cash donations as well as documentation for qualifying non-cash contributions.
For taxpayers who itemize, charitable giving may provide a valuable deduction when properly documented and eligible under current tax rules. Certain taxpayers may also benefit from strategies involving appreciated investments or other assets, depending on their circumstances.
Review Your Retirement Contributions
Retirement planning can also play an important role in year-end tax planning. Review your contributions to employer-sponsored retirement plans, such as a 401(k), 403(b), or other qualified retirement plan, and determine whether you are taking full advantage of available contribution opportunities.
If you are self-employed or own a business, there may be additional retirement plan options worth considering.
Increasing eligible retirement contributions before the applicable deadlines may potentially reduce current taxable income while helping you build toward your long-term financial goals.
Don't Forget About IRAs
If you have an IRA, review your contributions and determine whether you are taking advantage of available opportunities for the 2026 tax year.
Depending on your income, filing status, participation in an employer retirement plan, and other factors, contributions to a traditional IRA may be deductible. Roth IRA contributions generally work differently because they are not deductible, but qualified withdrawals can potentially provide tax-free income in retirement.
IRA eligibility, contribution limits, deduction rules, and income limitations can vary, so it is important to review your specific circumstances before making a contribution.
Review Required Minimum Distributions
If you are required to take required minimum distributions (RMDs) from retirement accounts, make sure you understand your applicable deadline and distribution requirements. Failing to take a required distribution can result in significant tax consequences.
Retirement account rules can be complex, particularly when you have multiple accounts or recently reached an applicable RMD age. Consider reviewing your situation before year-end rather than waiting until tax season.
Review Investment Gains and Losses
If you have investments in taxable accounts, review your realized and unrealized gains and losses before the end of the year.
Depending on your circumstances, realizing certain investment losses may help offset capital gains. Likewise, selling appreciated investments can create taxable gains that should be considered as part of your overall tax planning.
Investment decisions should not be made solely for tax purposes, but understanding the potential tax impact before making a transaction can help you make more informed decisions.
Business Owners and Self-Employed Individuals
Business owners should begin reviewing their 2026 income and expenses well before December 31. Consider reviewing:
- Business income and profitability
- Estimated tax payments
- Equipment and other business purchases
- Vehicle and mileage records
- Business-use-of-home expenses
- Retirement plan contributions
- Payroll and contractor records
- Business-related receipts and documentation
Year-end planning may provide opportunities to manage the timing of income and expenses, evaluate potential deductions, and prepare for upcoming tax obligations.
Keep Your Records Organized
Good recordkeeping is one of the most important parts of a smooth tax preparation process. Throughout the year, maintain copies of tax forms, receipts, statements, donation records, retirement contribution information, and other supporting documents.
As you receive documents such as W-2s, 1099s, mortgage interest statements, investment statements, and retirement account forms, keep them in a secure and organized location.
Don't Wait Until Tax Season
Waiting until the last minute can make it harder to identify tax-planning opportunities. Some decisions need to be made before December 31, while others may have deadlines that extend into the following year.
A year-end tax review gives you an opportunity to look at your complete financial picture and determine whether there are steps you should consider before the tax year closes.
We're Here to Help
Tax planning is more than simply preparing a tax return after the year ends. Our goal is to help you understand your tax situation throughout the year and identify opportunities to plan ahead.
As part of your 2026 tax planning, we can help you review your income, withholding, estimated tax payments, deductions, retirement contributions, IRA options, charitable giving, investments, and other factors that may affect your tax liability.
We encourage you to contact our office before year-end, particularly if you have experienced significant changes in your financial or personal situation. A new job, retirement, marriage, divorce, home purchase or sale, inheritance, business activity, investment transactions, or changes in income can all have tax implications.
Our team can also help you determine what records and documentation you should begin gathering now so that your 2026 tax return can be prepared as efficiently as possible. Being organized early can help reduce stress, avoid missing important information, and make the filing process smoother.
Schedule Your Tax Planning Review
Don't wait until tax season to find out what you could have done differently. A year-end review gives you time to evaluate your options and make informed decisions before important deadlines.
Contact our office today to schedule your 2026 tax planning appointment. We're here to answer your questions, help you prepare, and work with you to make the most of the tax planning opportunities available to you.
Plan ahead. Stay organized. Minimize surprises. Let our team help you make tax season easier.
This letter only covers some of the year-end tax planning moves that could potentially benefit you, your family, and your business. Please contact us if you have questions, want more information, or would like us to help in evaluating best tax planning options for 2026.