Most tax decisions for a given year have to be made before December 31, not in April. Once the calendar turns, your options shrink to a few items such as IRA and HSA contributions. That makes November and December the right time to take stock. This checklist covers the main areas worth reviewing for the 2026 tax year, with the official IRS figures that apply to returns filed in 2027. Several rules changed for 2026 because of the 2025 tax law often called the One Big Beautiful Bill Act, so even routine habits deserve a second look.
1. Know your 2026 bracket and standard deduction
Understanding where your income falls helps you judge whether to accelerate or delay income and deductions. These are the 2026 figures from IRS Revenue Procedure 2025-32.
| Rate | Single: taxable income over | Married filing jointly: taxable income over |
|---|---|---|
| 10% | $0 | $0 |
| 12% | $12,400 | $24,800 |
| 22% | $50,400 | $100,800 |
| 24% | $105,700 | $211,400 |
| 32% | $201,775 | $403,550 |
| 35% | $256,225 | $512,450 |
| 37% | $640,600 | $768,700 |
The 2026 standard deduction is $16,100 for single filers and married people filing separately, $32,200 for married couples filing jointly, and $24,150 for heads of household. If your itemized deductions will be close to these amounts, timing matters: grouping deductible payments into one year, sometimes called “bunching,” can let you itemize in that year and take the standard deduction in the next.
2. Maximize workplace retirement contributions
401(k), 403(b) and most 457 contributions must come out of 2026 paychecks to count for 2026. The 2026 employee limit is $24,500, plus an $8,000 catch-up if you are 50 or older, or an $11,250 catch-up if you are 60 to 63. If you are behind and can afford it, ask payroll whether you can raise your percentage for the remaining pay periods. Pre-tax contributions lower your 2026 taxable income; Roth contributions do not, but grow tax-free for qualified withdrawals.
3. Plan IRA and HSA contributions (deadline: April 2027)
These two have a grace period. You can generally make 2026 contributions until the April 2027 filing deadline. For 2026, the IRA limit is $7,500, plus $1,100 if you are 50 or older. The HSA limit is $4,400 for self-only coverage and $8,750 for family coverage, plus $1,000 if you are 55 or older. A deductible traditional IRA or HSA contribution can still lower your 2026 tax bill after the year ends.
4. Use or plan your flexible spending account
The 2026 health FSA salary-reduction limit is $3,400. FSAs generally follow a “use it or lose it” approach, though your employer may offer a limited carryover or a grace period. Check your plan’s deadline and remaining balance, and schedule eligible purchases or appointments if needed. Open enrollment is also when you choose your 2027 FSA amount.
5. Review charitable giving under the 2026 rules
Charitable deductions changed starting in 2026:
- Non-itemizers can deduct some cash gifts. According to the IRS, taxpayers who take the standard deduction can deduct up to $1,000 ($2,000 if married filing jointly) of cash gifts to qualifying charities. Gifts to donor-advised funds and supporting organizations do not count, and non-cash gifts are excluded.
- Itemizers face a new floor. For those who itemize, charitable deductions are reduced by 0.5% of adjusted gross income, so only giving above that threshold produces a deduction.
- Top-bracket benefit is capped. Taxpayers in the 37% bracket see the value of itemized deductions limited to 35%.
Keep written acknowledgments for any single gift of $250 or more, and records such as bank statements for smaller cash gifts.
6. Required minimum distributions and QCDs
If you are 73 or older, your 2026 required minimum distribution (RMD) from IRAs and most workplace plans is generally due by December 31, 2026. If 2026 is the year you turned 73, your first RMD can be delayed until April 1, 2027, but then you would take two distributions in 2027. Missing an RMD triggers a 25% excise tax on the shortfall, reduced to 10% if corrected within two years.
If you are at least 70½, a qualified charitable distribution (QCD) lets you send money directly from an IRA to an eligible charity. The 2026 QCD limit is $111,000 per person. A QCD is excluded from income and can count toward your RMD, but you cannot also deduct it as a charitable contribution.
7. Review investment gains and losses in taxable accounts
Long-term capital gains (on assets held more than one year) are taxed at 0%, 15% or 20%, depending on taxable income. For 2026, the 0% rate applies to taxable income up to $49,450 for single filers and $98,900 for married couples filing jointly. The 20% rate begins above $545,500 (single) and $613,700 (joint). Short-term gains are taxed as ordinary income.
- Loss harvesting: Realized losses offset gains, and up to $3,000 of net losses per year ($1,500 if married filing separately) can offset ordinary income, with the rest carried forward.
- Wash-sale rule: A loss is disallowed if you buy a substantially identical security within 30 days before or after the sale.
- Mutual fund distributions: Funds often pay capital gains distributions in December. Buying shortly before a distribution can create a taxable event without an economic gain.
8. Check the new deductions created for 2025 through 2028
The 2025 tax law created several temporary deductions available whether or not you itemize. Each has an income-based phase-out. Per the IRS:
| Deduction | Maximum | Phase-out begins (MAGI) |
|---|---|---|
| Qualified tips | $25,000 | $150,000 ($300,000 joint) |
| Qualified overtime pay | $12,500 ($25,000 joint) | $150,000 ($300,000 joint) |
| Interest on a qualifying new car loan | $10,000 | $100,000 ($200,000 joint) |
| Additional deduction for age 65 and older | $6,000 per eligible person | $75,000 ($150,000 joint) |
Each has specific eligibility rules, so keep pay stubs, loan documents and records that show which amounts qualify.
9. Check withholding and estimated payments
If you had a raise, side income, investment gains or a job change, compare your year-to-date withholding to your expected tax. The IRS Tax Withholding Estimator can help. Increasing withholding on your last paychecks can reduce or avoid an underpayment penalty, because withholding is generally treated as paid evenly through the year. Self-employed people should also note the fourth-quarter estimated payment due in mid-January 2027.
10. Other year-end items
- Annual gift exclusion: You can give up to $19,000 per recipient in 2026 without using any lifetime exemption or filing a gift tax return.
- Education: Review 529 plan contributions, since many states offer state tax deductions with a December 31 deadline.
- Child tax credit: The IRS lists the credit at up to $2,200 per qualifying child, with up to $1,700 refundable, subject to income limits and Social Security number rules.
- Records: Start a folder for 2026 documents: W-2s, 1099s, receipts and charitable acknowledgments arrive in January and February.
The bottom line
Before December 31, 2026, confirm your bracket, finish workplace retirement contributions, use FSA balances, take any RMDs, review charitable giving under the new rules, and look at gains and losses in taxable accounts. IRA and HSA contributions can wait until April 2027. Tax situations vary widely, so for decisions specific to you, consult a licensed tax professional such as a CPA or enrolled agent.
Sources
- IRS: Tax inflation adjustments for tax year 2026 (IR-2025-103)
- IRS: One Big Beautiful Bill Act tax deductions for working Americans and seniors
- IRS: Retirement topics, required minimum distributions
- IRS Topic 409: Capital gains and losses
Featured image: Coyau / Wikimedia Commons, CC BY-SA 3.0