Last updated: September 26, 2026 · By the Flex Tax and Consulting Group team
Year-end tax planning works best in October and November, not the last week of December. For 2026, several rules from the 2025 federal tax law apply fully for the first time: new limits on charitable deductions, a higher SALT cap that phases down for high earners, and permanent 100% bonus depreciation for businesses. This checklist covers the key numbers, the moves that must happen by December 31, 2026, and what can wait until April.
Key takeaways
- Charitable gifts in 2026 face a new 0.5%-of-AGI floor for itemizers, and a 35% cap on the benefit for top-bracket filers.
- The SALT cap is $40,400 for 2026 but phases down above $505,000 of modified AGI.
- 401(k) deferrals ($24,500 limit) must go through payroll by December 31; IRA and HSA contributions can wait until April 15, 2027.
- Business owners: 100% bonus depreciation is permanent, and Section 179 allows up to $2,560,000 of expensing for 2026.
- Q4 2026 estimated taxes are due January 15, 2027.
2026 numbers to know
| Item | 2026 amount |
|---|---|
| Standard deduction | $16,100 single / $32,200 married filing jointly |
| 401(k) / 403(b) employee deferral | $24,500 (+$8,000 catch-up at 50+; $11,250 at ages 60–63) |
| IRA contribution | $7,500 (+$1,100 catch-up at 50+) |
| HSA contribution | $4,400 self-only / $8,750 family |
| SALT deduction cap | $40,400, phasing down above $505,000 MAGI (floor of $10,000) |
| Annual gift tax exclusion | $19,000 per recipient |
| Estate and gift tax exemption | $15,000,000 per person |
| Section 179 expensing | $2,560,000 (phase-out begins at $4,090,000 of purchases) |
| QBI (Section 199A) income threshold | $201,750 single / $403,500 married filing jointly |
Checklist for individuals and high earners
Before December 31, 2026
- Max out workplace retirement deferrals. 401(k) contributions have to come out of 2026 paychecks. If your 2025 wages from the same employer were above about $150,000, your catch-up contributions in 2026 generally must go in as Roth.
- Review charitable giving under the new rules. If you itemize, the first 0.5% of your AGI in donations isn’t deductible starting in 2026. If you don’t itemize, you can now deduct up to $1,000 of cash gifts ($2,000 joint). Gifts of appreciated stock and donor-advised funds are still worth discussing.
- Harvest investment losses. Realized losses can offset gains and up to $3,000 of ordinary income. Watch the 30-day wash-sale rule when repurchasing.
- Use your annual gift exclusion. Gifts of up to $19,000 per recipient don’t use any of your lifetime exemption.
- Take required minimum distributions if they apply to you, and consider qualified charitable distributions from an IRA if you’re 70½ or older.
- Check your withholding. Big RSU vests, bonuses or stock sales often leave people under-withheld. A year-end paycheck adjustment counts as if it were paid evenly through the year.
Can wait until April 15, 2027
- IRA and Roth IRA contributions for 2026
- HSA contributions for 2026
Checklist for business owners
- Project 2026 profit now so there’s time to act before December 31.
- Time equipment purchases. Qualifying property must be placed in service by December 31 to count for 2026. Both 100% bonus depreciation and Section 179 are available.
- Review S-corp owner salary. Reasonable compensation affects payroll taxes, the QBI deduction and retirement plan contributions. Year-end payroll is the last chance to adjust it for 2026.
- Look at retirement plans. Solo 401(k), SEP and defined-benefit plans have different setup and funding deadlines. Some must be in place by December 31.
- California PTET. The elective pass-through entity tax is extended through 2030. If your entity missed the June 15, 2026 prepayment, the election is still possible, but the owners’ credit is reduced by 12.5% of the payment that was missed. Review this before your 2026 return is filed.
- R&D costs. Domestic research and experimental expenses can again be deducted immediately rather than spread over five years.
- Get ready for January filings. Collect W-9s from contractors now so 1099-NEC forms can go out by February 1, 2027 (January 31 falls on a Sunday).
Checklist for investors and international taxpayers
- Review unrealized gains and losses across all brokerage accounts, including RSU and ESPP shares.
- If you have large capital gains, ask whether a Qualified Opportunity Fund investment fits. The IRS asked in September 2026 for comments on rules for the next round of Opportunity Zones, which begin in 2027.
- If you have rental property, gather depreciation records and any cost segregation study before year-end.
- If you have foreign bank or investment accounts, track each account’s highest balance for FBAR (FinCEN 114) and Form 8938 reporting.
Key year-end and early-2027 deadlines
| Date | What’s due |
|---|---|
| December 31, 2026 | 401(k) deferrals, charitable gifts, loss harvesting, annual-exclusion gifts, RMDs, equipment placed in service |
| January 15, 2027 | Q4 2026 federal estimated tax payment |
| February 1, 2027 | W-2s to employees; 1099-NEC to contractors and the IRS |
| March 15, 2027 | S-corporation and partnership returns (or extension) |
| April 15, 2027 | Individual returns (or extension), IRA and HSA contributions for 2026, FBAR |
FAQ
When should I start year-end tax planning?
Ideally in October or November. Many moves, such as 401(k) deferrals, charitable gifts, equipment purchases and payroll changes, must be finished by December 31.
What changed for charitable deductions in 2026?
Itemizers can’t deduct donations below 0.5% of AGI, and top-bracket filers get a benefit capped at 35 cents per dollar of itemized deductions. Non-itemizers can deduct up to $1,000 ($2,000 joint) of cash gifts.
Can I still contribute to an IRA for 2026 after December 31?
Yes. IRA and HSA contributions for 2026 can be made until April 15, 2027.
Is bonus depreciation still available in 2026?
Yes. The 2025 tax law made 100% bonus depreciation permanent for qualifying property.
Related reading
- No Tax on Overtime: How the New Overtime Deduction Works
- Selling RSUs or ESPP Shares Without a Tax Plan
- Case Study: Does an S-Corp Actually Save Taxes If You Have a Full-Time Job?
Sources
- IRS: Tax inflation adjustments for tax year 2026
- IRS: 401(k) limit increases to $24,500 for 2026
- Tax Foundation: Charitable deduction changes under the 2025 tax law
Want a year-end review before December 31?
This article provides general information only and is not tax or legal advice. Tax outcomes depend on individual facts and circumstances. Contact us about your specific situation.