The end of the year is the last chance to make moves that count on your 2026 return. Here is what is worth knowing now, plus a first look at next year’s numbers.
For individuals and families
Several deductions created by last year’s tax law are in place through 2028, and you can claim them whether or not you itemize:
- Age 65 or older: an extra deduction of up to $6,000 per person ($12,000 for a married couple who both qualify). It phases out once modified adjusted gross income passes $75,000 ($150,000 for joint filers). Learn more on IRS.gov
- Tips: up to $25,000 of qualified tips can be deducted. It phases out above $150,000 of income ($300,000 joint). Learn more on IRS.gov
- Overtime: the extra “half” of time-and-a-half pay can be deducted, up to $12,500 ($25,000 joint), with the same income phase-out as tips. Learn more on IRS.gov
- Car loan interest: up to $10,000 a year of interest on a loan taken out after 2024 for a new vehicle assembled in the United States and used personally. It phases out above $100,000 ($200,000 joint). You will need the vehicle’s VIN on your return. Learn more on IRS.gov
If any of these apply to you, keep your year-end pay stubs and loan statements handy. They make the deductions much easier to document.
Charitable giving changes in 2026
Starting with 2026 returns, people who take the standard deduction can still deduct cash gifts to qualified charities: up to $1,000 for single filers and $2,000 for married couples filing jointly. Gifts to donor-advised funds generally don’t count. Keep the receipt or bank record for every gift. Learn more on IRS.gov
For business owners
- 1099 threshold: for payments made in 2026, the reporting threshold for many 1099 forms rose from $600 to $2,000. You may have fewer forms to file in January, but you still need a W-9 on file for contractors you pay. Learn more on IRS.gov
- Payment apps and card processors: Form 1099-K is required only when payments exceed $20,000 and 200 transactions. All of your business income is still taxable, whether or not you receive a 1099-K. Learn more on IRS.gov
- Equipment purchases: business assets bought and placed in service by December 31 can often be deducted this year. If you are planning a purchase, talk with us about timing before year-end. Learn more on IRS.gov
A first look at 2027
The IRS released next year’s inflation adjustments on November 5:
- Standard deduction: $16,600 single, $33,200 married filing jointly, $24,925 head of household
- Child tax credit: up to $2,300 per child, with up to $1,800 refundable
- Annual gift exclusion: $20,000 per recipient
- Estate tax exclusion: $15,480,000 per person
- Section 179 expensing limit for businesses: $2,640,000
See all of the 2027 adjustments on IRS.gov
Upcoming deadlines
- December 31: last day for 2026 charitable gifts, equipment placed in service and 401(k) deferrals through payroll.
- January 15, 2027: fourth-quarter 2026 estimated tax payment. Learn more on IRS.gov
- February 1, 2027: 2026 Forms W-2 and 1099-NEC due to recipients and the IRS (January 31 falls on a Sunday). Learn more on IRS.gov
Have a question about how any of this affects you? Call us at (352) 338-0424 or send us a message. We are happy to help you plan before the year closes.
This article is general information, not advice for your specific situation. Tax rules have limits and exceptions, so please talk with us before acting.