Everyone Wins This Year’s Tax Lottery
Please see a summary of tax law changes made in 2025 here. So many changes, most of which are permanent.
2026 Tax Planning Checklist (Client-Friendly)
Retirement & Income
- Roth conversions
- Additional deduction for taxpayers age 65+ (up to ~$6,000 per eligible person; income limits may apply)
- Social Security benefits may still be taxable (rules unchanged in many cases)
Paycheck Items
- Deduction for qualified tips (limits and eligibility rules apply)
- Deduction for qualified overtime (limits and eligibility rules apply)
Loans & Consumer
- Auto loan interest deduction (up to ~$10,000 for eligible loans; limits may apply)
Family & Education
- Child Tax Credit (about $2,200 per qualifying child; phaseouts may apply)
- Children’s savings account
- Up to $5,000 annual contribution
- Up to $2,500 employer contribution
- Withdrawals after age 18 (rules apply)
- $1,000 U.S. funding for certain children born 2025–2028 (eligibility rules apply)
- 529 plans: expanded qualified expense options (confirm eligible categories)
Deductions & Itemizing
- Standard deduction (Married Filing Jointly: around $31,500; indexed)
- SALT cap increase (up to ~$40,000 if MAGI under ~$500,000; phaseout rules apply)
- Charitable giving: deduction generally only for amounts above ~0.5% of AGI (rules apply)
- Mortgage interest rules: commonly referenced cap around $750,000 (confirm based on loan details)
Other Tax Rules
- AMT (Alternative Minimum Tax) rules made permanent
- Estate & gift exemption: approximately ~$15 million per person (indexed)
Investors & Business Owners (If Applicable)
- Qualified Opportunity Zones (QOZ): gain deferral/incentives (timing and eligibility rules apply)
- Clean energy credits: reduced/eliminated (effective dates may vary)
- 100% bonus depreciation for qualifying business assets
- Immediate expensing for certain production property and research costs
- QSBS (Qualified Small Business Stock) gain exclusions (strict eligibility/holding period rules apply)
While some may find these changes applying to only the wealthy, others will find significant tax refunds coming to them this year.
If you’d like an introduction to Chris, JD or Fred, just let me know!
Eat wisely
Sleep well
Love with Abandon!