For most people, taxes are a spring activity — but by the time you're gathering documents in April, the tax year is closed and most planning opportunities have passed. The better time to act is now, while you can still make decisions that lower your bill.
This year that's especially true. The One Big Beautiful Bill Act (OBBBA), signed in July 2025, made substantial changes to individual and business taxes — some already in effect, others new for 2026. Here are the moves worth considering before December 31, for individuals and small businesses alike. None is one-size-fits-all, so treat this as a starting point for a conversation.
For Individuals and Families
Make the Most of Retirement Contributions
Retirement contributions remain one of the simplest ways to cut taxable income while building your future. For 2026, you can contribute up to $24,500 to most 401(k) plans (plus catch-up contributions at age 50 and older), and up to $7,500 to an IRA — $8,600 if you're 50 or older. Traditional contributions lower your taxable income now; Roth contributions trade that for tax-free withdrawals later. Most 401(k) contributions must go through payroll by December 31, though IRA contributions can generally be made until the April 2027 filing deadline.
Revisit Your Charitable Giving Strategy
Charitable deductions changed in 2026, in two directions. If you take the standard deduction, a new provision lets you deduct up to $1,000 in cash gifts ($2,000 for joint filers). If you itemize, a new floor applies: contributions are deductible only to the extent they exceed 0.5% of your adjusted gross income. That makes timing and method worth revisiting — bunching several years of giving into one, donating appreciated investments, or using a donor-advised fund can help in the right circumstances. Taxpayers 70½ or older should also consider qualified charitable distributions (QCDs), which send IRA money straight to charity and can satisfy required minimum distributions without adding the amount to taxable income.
Take Advantage of the Expanded SALT Deduction
OBBBA raised the deduction limit for state and local taxes (SALT) to $40,400 for 2026, up from the $10,000 cap in place before 2025. It begins phasing down above $505,000 of modified AGI ($252,500 if married filing separately). If you itemize, review the timing of property tax and state estimated payments before year-end — paying eligible amounts early can boost your 2026 deduction when the timing otherwise makes sense.
Review Your Investments Before Year-End
Investment gains and losses create both liabilities and opportunities. If you've realized capital gains this year, selling investments that have dropped can offset them; excess losses offset up to $3,000 of ordinary income a year, with the rest carried forward. In a lower-income year, the reverse can make sense — intentionally realizing gains while you qualify for favorable long-term rates. Year-end is also the time to weigh a Roth conversion, which creates taxable income now for potential long-term gain. Consider these together: a gain or conversion can ripple into Medicare premiums, credits, and other deductions.
Don't Overlook Health Savings and Dependent Care Benefits
Health Savings Accounts (HSAs) offer a rare triple advantage: deductible contributions, tax-deferred growth, and tax-free withdrawals for qualified medical costs. For 2026, you can contribute up to $4,400 (self-only) or $8,750 (family), plus a catch-up at 55 or older — and OBBBA expanded HSA eligibility to more health plans. Families paying for childcare should revisit their benefits too: the maximum exclusion for employer dependent-care assistance rose to $7,500 for most taxpayers in 2026, and changes to the Child and Dependent Care Credit may add savings for some households. HSA contributions can generally be made into April 2027, but most dependent-care and FSA decisions must be made by year-end.
Check Your Eligibility for New Individual Deductions
OBBBA created four temporary deductions for tax years 2025 through 2028, available whether you itemize or not (income limits and other rules apply):
• Qualified tips — up to $25,000 of reported tip income.
• Qualified overtime — up to $12,500 ($25,000 for joint filers) of overtime premium pay.
• Vehicle loan interest — up to $10,000 on loans for certain new, U.S.-assembled personal vehicles.
• Seniors — up to $6,000 per taxpayer age 65 or older (up to $12,000 for couples when both qualify).
If one applies to you, review your expected year-end income and keep the right documentation — it could make a real difference at filing.
Review Family Tax Credits and Education Expenses
Families with children should review credits and education costs before year-end. The Child Tax Credit rose to as much as $2,200 per qualifying child under 17, subject to income limits. For college families, the timing of tuition payments can affect education credits, and 529 plan contributions may carry state tax benefits depending on your plan and state. These are especially worth a look if your family's income, education expenses, or dependents changed this year.
For Small Business Owners
Consider Equipment Purchases Before December 31
One of OBBBA's biggest business changes is the permanent restoration of 100% bonus depreciation for qualifying property acquired after January 19, 2025 — letting you deduct the full cost of many equipment purchases the year they're placed in service rather than over time. Section 179 expensing also rose, to a maximum $2.56 million for 2026, subject to investment and income limits. The key phrase is placed in service: the asset must be in use, not merely bought or ordered, before year-end. Accelerating a planned purchase can save real money — but buying solely for the deduction rarely makes business sense. Weigh cost, financing, future profitability, and state tax treatment.
Review Business Income and Expenses
If your business uses the cash method, the timing of income and expenses affects this year's tax. Collecting some receivables in January instead of December, or paying legitimate expenses before year-end, may help — but deferring income isn't always right. If you expect higher income or rates next year, the opposite can be smarter. The goal is to manage taxable income across years, not just minimize this year's profit.
Revisit Retirement Plans for Business Owners
Business owners have extra room for tax-advantaged retirement savings — SEP IRAs, SIMPLE IRAs, and traditional or solo 401(k) plans, depending on your structure and staff. Some can be opened or funded after December 31; others have year-end requirements. These contributions can lower business taxable income without accelerating expenses or buying equipment, so if you've had a profitable year, weigh them before deciding how much to distribute or retain.
Understand the Changes to Pass-Through Business Deductions
The 20% Qualified Business Income (QBI) deduction for eligible sole proprietorships, partnerships, and S corporations is now permanent. For 2026, the law also widens the income phase-in ranges and adds a minimum deduction for certain taxpayers — opening fresh room to plan around income, retirement contributions, and entity structure. Restored expensing for domestic research and development and changes to business interest limits may benefit qualifying businesses as well.
A Few Important Deadlines
Not every opportunity expires December 31, but several can't wait. By year-end: handle payroll retirement contributions, required minimum distributions, charitable gifts, investment sales, deductible payments, and any business assets that must be placed in service. In early 2027: eligible IRA, HSA, and certain business retirement contributions may still be made for 2026, subject to the rules. Knowing which is which is half of good planning.
The Bigger Picture
Tax provisions rarely work in isolation. A retirement contribution might preserve another deduction. A Roth conversion might pay off long-term but raise this year's Medicare premiums. A big equipment purchase might cut federal tax while changing your state result — and sometimes recognizing more income now beats deferring it. The best year-end strategy isn't the one with the largest deduction; it's the one that fits your whole financial picture.
Let's Talk Before the Year Closes
There's still time to shape your 2026 tax bill, but much of it requires action before December 31. If you'd like to review your situation, we can help identify which moves are worth making and how they fit your broader goals. A little planning now can make a real difference come spring.
This article is general information, not individualized tax advice, and reflects federal tax law as understood in October 2026. Tax treatment depends on your circumstances, applicable state law, and eligibility rules. Please consult your tax advisor before acting on any strategy discussed here.