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Key Tax Moves for 2026: A Practical Planning Guide

Tax changes for 2026 touch nearly every corner of the financial picture, from retirement and charitable giving to education funding and estate planning. Rather than treating these updates as isolated rules, it’s often more helpful to look at who they affect and what decisions they influence.

Below is a streamlined guide to the most important 2026 tax changes, organized by planning theme.

If You Typically Take The Standard Deduction

Expanded Benefits for Older Adults (Age 65+)

A new senior deduction is available for tax years 2025–2028:

  • $6,000 for single filers
  • $12,000 for married couples filing jointly
  • Available without itemizing

The deduction phases out at:

  • $75,000 MAGI (single)
  • $150,000 MAGI (married filing jointly)

This is in addition to the existing age-based standard deduction, which does not phase out.

Why it matters:
Income timing, such as Roth conversions, capital gains, or Social Security decisions, may affect whether you qualify for the full benefit.

New Charitable Deduction (Even Without Itemizing)

Starting in 2026:

  • Non-itemizers may deduct up to $1,000 in cash charitable contributions
  • $2,000 for married couples filing jointly

Why it matters:
Charitable giving can remain tax-efficient even for households using the standard deduction.

If You Itemize

Itemized Deductions Still Count, With New Constraints

Key itemized deductions include:

  • State and local taxes (SALT)
  • Mortgage interest
  • Medical and dental expenses
  • Charitable contributions
  • Disaster-related casualty losses

The SALT cap remains elevated at $40,000, which may push more households toward itemizing.

However, new limitations apply:

  • Charitable deductions now face a 0.5% AGI floor
  • High earners in the top bracket see deduction value capped at 35%
  • The 60% AGI limit for cash gifts to public charities is now permanent

Why it matters:
“Bunching” charitable gifts into one year may still help—but the math is more nuanced than before.

If You’re Focused on Saving (or Catching Up)

Retirement Accounts

  • IRAs: $7,500 contribution limit (+$1,100 catch-up if age 50+)
  • 401(k)s:
    • $24,500 (under 50)
    • $32,500 (50+)
    • Ages 60–63 may contribute even more via a new “super catch-up”

Starting in 2026, individuals earning $150,000+ in prior-year FICA wages must make catch-up contributions to Roth accounts, not pre-tax.

Why it matters:
This changes future tax treatment of retirement income and may affect Roth conversion and withdrawal strategies.

Health Savings Accounts (HSAs)

  • 2026 limits increase to:

    • $4,400 (self-only)
    • $8,750 (family)
    • Additional $1,000 catch-up per spouse if age 55+

Why it matters:
HSAs remain one of the most tax-efficient tools available when coordinated with long-term planning.

Flexible Spending Accounts (FSAs)

  • Dependent Care FSA limit increases to $7,500 in 2026

If Education Planning Is on Your Radar

529 Plans Get More Flexible

  • Beginning in 2026:

    • Up to $20,000 per year may be used for qualified K–12 expenses
    • Eligible expenses expand beyond tuition to include books, tutoring, and fees

    Iowa-specific benefit:
    Iowa taxpayers may deduct up to $6,100 per beneficiary in 2026, with contributions allowed through the state filing deadline.

Why it matters:
For families with multiple beneficiaries, 529 planning can meaningfully reduce state taxes while supporting education goals.

If Education Planning Is on Your Radar

Child Savings Accounts (“Trump Accounts”)

  • Starting July 4, 2026:

    • Up to $5,000 per child per year
    • Government contributes $1,000 for eligible children born 2025–2028
    • Tax-deferred growth

Why it matters:
These accounts introduce a new planning tool for families focused on long-term savings.

Other Major 2026 Changes to Know

  • ESTATE AND GIFT TAX EXEMPTION increases to $15 million per person
  • CLEAN ENERGY AND EV CREDITS largely expire after 2025
  • CAR LOAN INTEREST DEDUCTION (up to $10,000) available for qualifying U.S.-assembled vehicles, subject to income limits
  • GAMBLING LOSSES are limited to 90% of winnings—meaning even “break-even” gambling may now create taxable income

The Big Picture

2026 tax changes reinforce an important theme: planning works best when decisions are connected. Income timing, savings strategies, charitable giving, education funding, and legacy goals increasingly overlap.

At Conley Capital Management, we help clients step back from the noise and look at how these rules fit into a coordinated plan, so decisions feel intentional rather than reactive.

Conley Capital Management offers advisory services through XYPN Sapphire, an SEC- Registered Investment Adviser. The information on this site is educational and is not intended as specific financial, tax, accounting, or legal advice. . Information provided should not be solely relied upon for decision making. Please consult your financial, legal, tax, or accounting professional regarding your specific situation.