Tax Planning Strategies to Be Thankful for in 2026

As Thanksgiving approaches, many people take time to appreciate the relationships, routines, and opportunities that bring more ease to everyday life. It is also a fitting time to recognize the financial choices that can make the next tax season more manageable.

Thoughtful tax planning is not limited to a last-minute effort to collect documents in the spring. It is built through consistent habits, informed decisions, and attention to opportunities throughout the year. As the 2026 tax year draws to an end, we want are grateful for you as our clients and want to share strategies and tools that help you and your families stay prepared, reduce stress, and potentially improve their tax outcomes.

Keep Financial Documents Organized

Maintaining clear financial records year-round is one of the most helpful habits for a smoother tax filing process. Although it may seem routine, organized documentation can save significant time when it is time to prepare a return.

Store receipts, records of charitable gifts, investment statements, business-expense documentation, and other key financial materials in one reliable location. This makes it easier to identify available deductions and credits. Consistent tracking is particularly important for self-employed individuals, freelancers, and people earning income through gig work, since income and expenses may not be captured on a single tax form.

Good recordkeeping also reduces the pressure of trying to locate missing paperwork just before a filing deadline. A simple system used throughout the year can make tax preparation more accurate and far less overwhelming.

Retirement Savings That Support Two Goals

Retirement contributions can be valuable because they help build financial security for the future while potentially providing tax benefits today. Making retirement savings part of an overall tax strategy can create meaningful advantages over time.

For 2026, eligible participants may contribute up to $24,500 to employer-sponsored retirement plans, including 401(k), 403(b), and most 457 plans. Individuals age 50 and older generally may make an additional $8,000 catch-up contribution. Those ages 60 through 63 may be eligible for a higher catch-up amount of $11,250.

Individual Retirement Accounts also remain an important planning option. Depending on income and personal circumstances, contributions to a traditional IRA may be deductible. Roth IRAs, meanwhile, can offer qualified tax-free withdrawals in retirement. The 2026 IRA contribution limit is $7,500, plus an additional $1,100 catch-up contribution for eligible taxpayers age 50 and older.

A Charitable Deduction for Standard-Deduction Filers

Changes introduced through the One Big Beautiful Bill Act, or OBBBA, provide an additional reason to appreciate charitable giving beginning in 2026. The new rules can create a federal tax benefit for some people who do not itemize deductions.

Eligible taxpayers who take the standard deduction may deduct qualifying cash charitable contributions of up to $1,000 for single filers and up to $2,000 for married couples filing jointly. As a result, many people who previously did not receive a direct federal tax benefit from giving may now have access to one.

Anyone planning year-end charitable gifts should retain receipts and other required supporting records. Proper documentation is essential when it comes time to claim a deduction.

An Additional Deduction for Taxpayers Age 65 and Older

The OBBBA also established a new deduction intended for taxpayers who are age 65 or older. This change may offer useful flexibility for retirees and older adults who are evaluating their tax plans.

For tax years 2025 through 2028, qualifying individuals may be eligible for a deduction of up to $6,000 per person. A married couple in which both spouses qualify could receive as much as $12,000, though the benefit begins to phase out for taxpayers with higher incomes.

This deduction may be available whether a taxpayer itemizes or uses the standard deduction. That flexibility can make it an important item to review as part of an annual tax strategy.

The Value of Taking the Standard Deduction

In many cases, the simplest filing approach can also be a highly beneficial one. The standard deduction allows taxpayers to reduce taxable income without separately tracking and claiming every deductible expense.

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

Even if the standard deduction is likely to be the best option, it is wise to review that choice each year. Changes in mortgage interest, medical costs, state and local taxes, or charitable contributions could make itemizing more favorable depending on the taxpayer's situation.

Tax Credits That Can Benefit Families

Tax credits can be especially meaningful because they generally reduce the tax owed directly instead of only reducing taxable income. For eligible families, credits may play an important role in the overall tax picture.

For 2026, qualifying families may be able to claim a Child Tax Credit of up to $2,200 for each qualifying child under age 17. Income limits and additional eligibility rules apply, so it is important to consider the details of each family's circumstances.

Family changes can affect eligibility for available tax credits. A birth, adoption, or change in custody arrangements may alter a taxpayer's situation during the year. Keeping Dale Bugasch & Associates informed about these life events can help ensure potential tax opportunities are considered.

Health Savings Accounts Offer Multiple Tax Advantages

For taxpayers who are eligible, Health Savings Accounts remain among the most tax-favorable tools available. An HSA can help address current medical costs while also supporting longer-term healthcare planning.

In 2026, eligible individuals with self-only coverage may contribute up to $4,400 to an HSA. Those with family coverage may contribute up to $8,750. Taxpayers age 55 and older may also be eligible to add a $1,000 catch-up contribution.

HSA contributions may be deductible or made with pre-tax dollars, investment growth can be tax-free, and withdrawals for qualified medical expenses are generally tax-free. Unlike flexible spending accounts, HSA balances can carry over from one year to the next, allowing unused funds to remain available for future healthcare expenses.

More Flexible Uses for 529 Plan Savings

Although 529 plans are commonly associated with college savings, recent updates have broadened the ways these accounts may be used. This expansion can help families and individuals use education savings in support of more career paths.

Under the OBBBA, qualified expenses can now include certain postsecondary credentialing programs. Depending on the program, eligible costs may include tuition, fees, books, supplies, equipment, and certain testing expenses related to obtaining or maintaining recognized professional credentials.

This additional flexibility means 529 savings may be used for career advancement and continuing education opportunities beyond a traditional college degree program.

The Importance of Planning Beyond Tax Season

The strongest tax strategies are rarely developed only when a tax return is due. Reviewing financial circumstances throughout the year gives taxpayers more time to make beneficial adjustments before important deadlines pass.

Year-round planning may include checking withholding or estimated tax payments, assessing retirement contributions, evaluating charitable gifts, managing investment gains and losses, and estimating total tax liability before year-end. A proactive approach can reduce surprises and support better-informed financial decisions.

Thanksgiving is a reminder to value the things that matter most, including the habits that make tax season easier from one year to the next. Whether the focus is organizing records, increasing retirement savings, using new deductions, or reviewing an overall strategy, small actions can have a meaningful impact.

Dale Bugasch & Associates can help you evaluate these tax planning opportunities and discuss a year-end strategy before the calendar changes. With informed guidance and timely preparation, you can approach the 2026 tax season with greater confidence.