Tax Planning for 2026: Potential Opportunities to Save

April 24, 2026

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As the year enters its warmer months, several provisions from last year’s tax law are now in effect. This opens new ways to reduce your tax bill through expanded credits and deductions. A bit of proactive planning now can create savings not only for this filing season, but well into the future.

The legislation passed last summer mostly keeps the lower tax rates set by the 2017 Tax Cuts and Jobs Act. It also adds some new updates.

The familiar seven tax brackets remain the same, but income thresholds have moved up. They will keep tracking inflation. This helps reduce the chance of being pushed into a higher bracket.

The law also introduces targeted relief aimed at retirees, families with children, and taxpayers dealing with higher state and local tax burdens. That said, not every provision is permanent, and some may be revisited in the coming years.

At the same time, ongoing changes tied to the SECURE 2.0 Act continue to shape retirement planning. Updates to catch-up contribution rules and inherited IRA rules remain important for savers and beneficiaries. These changes, especially those in 2025, still matter.

Altogether, these changes make this an opportune time to revisit your tax strategy. Several provisions create planning opportunities that did not exist a few years ago. These include enhanced deductions for older taxpayers.

They also include expanded child-related benefits like allowing you to reposition unused 529 funds. However, some of these benefits will end soon. For that reason, it can help to act sooner rather than later.

With that backdrop, here are several practical strategies to consider for 2026 and beyond:

Be mindful of how investment income is taxed

Long-term capital gains and qualified dividends still get lower tax rates of 0%, 15%, or 20%, based on income. While the rates have not changed, higher income thresholds may give you more flexibility. You can better time when to realize gains or losses. Strategic timing—particularly in years with lower taxable income—can help reduce the overall tax impact.

Revisit retirement contribution strategies

Contribution limits for workplace retirement plans have increased. Catch-up options are also available for people age 50 and older.

Some plans allow even higher limits for people in their early 60s. New requirements also apply to higher earners making catch-up contributions, which must now be directed into Roth accounts. This shift may influence how you balance tax-deferred and tax-free savings.

Evaluate whether itemizing makes sense again

Changes to the state and local tax (SALT) deduction may make itemizing more appealing for some households.

The main change is a higher cap, with income-based phaseouts. In addition, a limited charitable deduction is available again for those who do not itemize. This gives more people access to tax benefits for giving.

Stay current on inherited IRA rules

For non-spouse beneficiaries, the 10-year distribution rule now applies. You may also need to take required minimum distributions (RMDs) during that period. Missing these requirements can lead to major penalties. If you’ve inherited retirement assets, it’s vital to understand your obligations.

Incorporate estate and gifting strategies early

Higher lifetime estate and gift tax exemptions, along with the annual exclusion, create opportunities to transfer wealth more efficiently. Structured gifting, either to individuals or through 529 plans, can reduce a taxable estate over time.

Account for digital assets in tax reporting

Cryptocurrency and other digital assets remain under increased scrutiny. Reporting requirements have expanded, including new forms for certain transactions, making accurate recordkeeping more important than ever.

Adjust to the expiration of certain energy credits

Some residential energy incentives that were previously available have now ended. If you were planning upgrades based on those credits, timing may affect eligibility.

Take advantage of inflation adjustments

Higher income thresholds and increased contribution limits across retirement accounts and HSAs can help offset “bracket creep.” Maximizing contributions remains one of the most straightforward ways to reduce taxable income.

Understand new flexibility with 529 plans

Unused 529 funds can now be moved to the beneficiary’s Roth IRA. This transfer is subject to specific rules and lifetime limits. This provision adds a valuable layer of flexibility to education savings.

Leverage tax benefits for families

Updates to the child tax credit and new custodial retirement accounts for minors offer more planning options. Families can use them to build long-term financial security.

Bottom Line

Tax planning is rarely one-size-fits-all, and the right strategy depends on your broader financial picture. Still, with so many moving parts this year, staying informed and acting with intention can make a real difference. It can improve both current and future tax outcomes.

Sources:

https://www.fidelity.com/learning-center/personal-finance/tax-moves

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

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