Smarter Tax Prep—Get Ahead Early in 2026

Maximize deductions and contributions

According to the IRS, the standard deduction for tax year 2026 rises to $32,200 for married couples filing jointly and $16,100 for single filers. So, it is important to understand how your own deductions compare to these amounts.

And be sure to make the most of special tax-saving opportunities:

• Contribute to retirement accounts: Aim to contribute as much as you comfortably can to your 401(k), 403(b), or IRA throughout 2026 to help reduce taxable income and build long term savings.
• Use tax-loss harvesting when appropriate: Periodically review your investments during the year and work with a tax professional or advisor to determine whether realizing certain losses to offset capital gains makes sense for your situation.
• Itemize where it makes sense: Compare your potential itemized deductions (such as charitable gifts, mortgage interest, and eligible medical expenses) to the 2026 standard deduction so you can choose the method that provides the greater benefit under the new One Big Beautiful Bill Act rules.
• Use an HSA if eligible: If you have a high deductible health plan, contributing to a Health Savings Account (HSA) in 2026 can reduce your taxable income, allow tax deferred growth, and provide tax free withdrawals for qualified medical expenses.

Organize your tax documents early 

Before filing, make sure you have the correct IRS forms. The 1040 is available for download at the IRS website, by mail (call 800-829-3676 to request it), or at local libraries and post offices starting in January.

You'll receive a 1099 INT if you're the primary account holder and earned $10 or more in interest across your accounts. Interest from Certificates of Deposits (CDs) or Share Certificates is reported when credited—even if the CD hasn't matured. Forms are issued by January 31, 2026, online or by mail.

Staying organized makes tax season far easier. As you get ready to file your 2025 return in 2026, gather W 2s, 1099s, receipts, and other documentation in one place so nothing is missed. You can use resources such as the TaxSlayer Tax Document Checklist or TurboTax's guide to tax prep to help you keep track of what you need.

• Create a filing system: Keep both digital and paper copies of your key tax documents in clearly labeled folders.
• Use accounting software: Expense tracking tools can help identify deductible items and keep your records consistent throughout the year.
• Maintain receipts: Save receipts for health care, education, and charitable contributions, since they often support itemized deductions on your return.

Plan and pay estimated taxes

If you're self-employed or have side income, review your estimated tax payments. Use the IRS Form 1040-ES to calculate what you owe for 2026. Paying throughout the year can help avoid underpayment penalties.

• Follow "safe harbor" rules: Aim to pay at least 90% of your current year's tax or 100% of last year's tax liability to reduce the risk of underpayment penalties.
• Use online tools: The IRS website is a comprehensive resource for finding tax help and tools tailored to your needs.

Stay current on tax law updates

Significant updates are in effect for the 2026 tax year, so staying informed can help you make better decisions as you plan. New rules may affect your tax rate, the value of your deductions, and how your estate plan fits into your overall financial picture.

• New tax brackets: Inflation adjusted brackets may change the marginal rate that applies to portions of your income.
• New charitable rules: Deductions for charitable giving now follow updated thresholds and limits, including a floor based on a percentage of your adjusted gross income and new caps for higher earners.
• Increased estate exemption: The federal estate tax exemption has increased to $15 million per person, indexed for inflation, which may impact long term planning for larger estates.
• Monitor policy changes: Use trusted resources, such as the IRS and established tax education sites, to stay updated on how new legislation, including provisions from the One Big Beautiful Bill Act, may affect you.

Checking in with a tax professional can help you understand how these changes apply to your specific situation and if you should adjust your strategy.

Look for an independent, non-commissioned wealth advisor to help you consider the investment strategies, insurance options, cash management vehicles and other tools specific to your circumstances and goals.

Plan ahead for future years

Tax planning shouldn't stop once you file. Regularly review your long-term goals, especially as your life changes to potentially reduce your tax burden over time.

• Adjust for after-life events: Marriage, divorce, a new job, retirement, or a growing family can all change your tax picture and may require updates to withholdings, filing status, or savings strategies.
• Revisit investment strategies: Coordinate investment decisions, retirement contributions, and charitable giving with your tax plan to keep both your short- and long term goals aligned.