Personalized tax advice from tax professionals is always recommended. But we wanted to give you a few things to consider, for informational purposes only.
Many new large and complex tax laws have been passed in the last decade, with clauses slowly taking effect through time and being clarified by the IRS to this day. These include the original Tax Cuts and Jobs Act (TCJA) of 2017, the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, the SECURE Act 2.0 of 2022, the Inflation Reduction Act (IRA) of 2022, and the One Big Beautiful Bill Act (OBBBA) of 2025.
With these new complexities on top of the already-existing complicated tax laws, instead of waiting until the end of the year, we want to encourage everyone to get pertinent tax advice from their team of financial, legal, and tax professionals now, mid-year, while they still have plenty of time to take action.
Personalized tax advice from tax professionals is always recommended. But we wanted to give you a few things to consider, for informational purposes only.
Can I benefit from charitable contributions?
- For non-itemizers, you can still claim an “above the line” deduction on your 2026 tax return for cash gifts to qualifying charities, excluding donor-advised funds and private foundations. Single people can claim up to $1,000; married up to $2,000. NOTE: Non-cash or in-kind donations of property are not deductible for those using the standard deduction.
- For those who itemize, you can still use Schedule A, but you can only deduct contributions that exceed .5% of your adjusted gross income. For example, if your AGI is $100,000, only donation amounts in excess of the first $500 are tax-deductible. Non-cash, in-kind donations are deductible over the threshold, but must meet new, stricter rules to substantiate fair market value of the items. For donated items valued over $500, you must file IRS Form 8283, and an independent appraisal is generally required for property valued over $5,000. For those in the top income tax bracket (37%), the tax benefit of charitable deductions is reduced from 37 cents to 35 cents per dollar donated.
- If you have a tax-deferred IRA (individual retirement account) and you are at least 70-1/2 years old, you might be able to make a direct QCD, or Qualified Charitable Contribution to an eligible nonprofit, allowing you to exclude up to $111,000 from your gross income. You can also use QCDs to satisfy your annual required minimum distributions, eliminating part or all of your tax bill on otherwise taxable RMDs.
Can I “bunch” my tax deductions?
With the standard deduction amount at $16,100 for single filers and $32,200 for those filing jointly in 2026, itemizing your tax returns only makes sense if your deductions exceed these amounts. Bunching multiple years’ worth of charitable donations, state and local taxes (SALT), large medical expenses, and other claimable deductions into a single tax year may be possible to help you surmount the standard deduction threshold.
Will I be able to make catch-up contributions for the 2026 tax year?
Maximizing contributions to tax-deferred qualified accounts is a strategy used by some to reduce taxable income. For those aged 50 or older, be aware that there are new requirements for catch-up contributions to workplace plans for 2026.
- $150,000 or less in income
For those who earn less than $150,000, you can still make catch-up contributions to your workplace traditional 401(k) or similar pre-tax accounts, or to your Roth accounts if your employer offers them. It’s your choice. Those aged 50 or older can contribute an additional $8,000 catch-up amount on top of their standard $24,500 contribution limit for 2026, while those aged 60 through 63 are allowed “super catch-up” amounts of $11,250.
- $150,000 income or more
For those who earn $150,000 or more, catch-up contribution amounts can only be made to after-tax Roth accounts beginning this year. If your workplace doesn’t offer a Roth option, you cannot make catch-up contributions in 2026.
- IRA catch-up amounts
For those who own their own traditional IRA or Roth IRA accounts, you may be able to contribute $7,500 for 2026 if you meet income and other IRS requirements. If you are 50 or older, an additional $1,100 catch-up amount may be allowed.
Do I have more tax write-off options as a sole-proprietor or business owner?
The short answer is yes. Here are a couple of recent tax laws that may apply to you as a business owner, but there are many more tax opportunities for businesses you may want to explore.
The OBBBA permanently provides immediate 100% bonus depreciation for eligible assets like vehicles or equipment allowing businesses to write off the entire cost of qualifying property upfront. Bonus depreciation can also be used to create or increase a net operating loss which can be carried forward to offset future taxable income.
The OBBBA also made the QBI deduction permanent with expanded access to more businesses. Pass-through businesses (meaning profits pass through your business to your personal tax return) may be eligible to deduct up to 20% of their QBI or qualified business income if they meet eligibility requirements.
We can team up with your CPA or tax professional to provide tax-advantaged strategies and solutions. Contact us to discuss!
This content is for informational and educational purposes only and should not be construed as tax, legal, or individualized financial advice. Always consult with your tax advisor, attorney, and/or qualified financial professional regarding your specific situation before making any retirement plan or tax-related decisions. Retirement plan provisions can vary based on plan design, employer implementation, and individual circumstances. Roth availability and catch-up contribution rules are subject to plan amendments and IRS guidance.
