How our proactive planning throughout the year helps navigate tax changes and uncover opportunities others may miss
By Ken Petrashek, EverPar Wealth Management
Key Takeaways:
- When should I start thinking about 2026 taxes? We’re already on it. Early-year planning gives us the most options and the best chance to implement strategies that require time.
- What’s the biggest tax change for 2026? A new senior bonus deduction adds $6,000 for single filers and $12,000 for married couples aged 65+, significantly increasing standard deductions for qualifying seniors.
- Why does year-round tax planning matter? Many tax strategies require months to implement. Waiting until December leaves you reacting instead of planning, often missing opportunities entirely.
Tax planning rarely comes down to a single decision or a single moment. More often, it’s a series of smaller conversations spread across the year, each one building on the last.
That’s why we think about taxes year-round. Not because it’s exciting dinner conversation, but because timing is important and proactive planning can give you options instead of regrets.
This year, that timing matters more than usual. Several changes are scheduled for 2026, including a few that could open meaningful opportunities for your family, and one that may reshape how charitable giving fits into your plan.
Here’s what’s shifting, and how our approach to year-round tax planning can make your financial decisions feel a lot more intentional.
Setting Your Foundation Early in the Year
Early in the year, one of the most useful signals we look at is how the prior tax year actually ended. One simple question usually gets us there: Did you receive a refund, or did you owe? There’s no “right” answer, but it tells us a lot.
I had a client last year who mentioned they were consistently receiving refunds of $12,000–$14,000. They thought of it as a forced savings account for vacations. But when we looked closer, it became clear they were overpaying taxes throughout the year, which is essentially giving the IRS an interest-free loan.
Because they were retired and living primarily off IRA withdrawals, we adjusted their withholding so that money stayed in their hands throughout the year instead. Same net outcome, with far more flexibility and more control over their cash flow.
That kind of refinement is what early-year planning is designed for. During this season, we focus on:
- Reviewing the prior year with purpose. Were there surprises? Unexpected income, missed deductions, or a tax bill that felt out of step with expectations?
- Identifying life changes. Marriage, a new child, a home purchase, or a business transition often create planning opportunities.
- Aligning taxes with your broader goals. Retirement contributions, education funding, charitable giving, and long-term family plans should all work together, not in isolation.
- Adjusting estimated tax payments. If you pay quarterly, we base those payments on current projections rather than simply repeating last year’s numbers.
New for 2026: Understanding the Senior Bonus Deduction
If you’re 65 or approaching it, this change is worth our attention. You’ve always received an extra standard deduction once you reach 65—$2,000 for single filers, $3,200 for married couples. Starting with your 2025 tax return (filed this April), there’s an additional bonus available through 2028:
- Single filers 65+: An extra $6,000 on top of the existing extra deduction
- Married couples (both 65+): An extra $12,000
Here’s what that looks like in practice for 2025:
| Single filer, 65 or older: – Standard deduction: $15,750 – Extra standard deduction for 65+: $2,000 – Senior Bonus Deduction: $6,000 Total deductions: $23,750 | Married filing jointly, both 65 or older: – Standard deduction: $31,500 – Extra standard deduction for 65+: $3,200 – Senior Bonus Deduction: $12,000 Total deductions: $46,700 |
That’s substantial tax savings, but there are income phase-out ranges:
- Married filing jointly: Phase-out begins at $150,000 AGI, eliminated completely at $250,000 AGI
- Single filers: Phase-out begins at $75,000 AGI, eliminated completely at $175,000 AGI
If you’re approaching these thresholds, early-year planning gives us months to explore strategies that might help manage your adjusted gross income and preserve some or all of this deduction. By the time December arrives, many of those options are off the table.
New for 2026: Standard Deduction Amounts
For 2026, the baseline standard deduction is also shifting upward:
- Single filers: $16,100
- Married filing jointly: $32,200
For most of you, this means itemizing still won’t make sense, a trend that’s continued since 2017 when the standard deduction increased significantly.
Checking in on Your Mid-Year Progress
By mid-year, we’ll be comparing your actual income trajectory against the projections we discussed in January. Sometimes everything’s tracking exactly as expected. Sometimes life throws a curveball, like a higher bonus than anticipated, an unexpected inheritance, or a business sale that moved faster than planned.
When your income is running higher than expected, we might talk about accelerating retirement contributions or exploring tax-loss harvesting opportunities. If it’s lower, we might adjust your estimated payments to avoid overpaying unnecessarily. If you’re behind on maximizing your 401(k) or considering catch-up contributions, mid-year gives us time to increase deferrals gradually rather than trying to front-load everything in the final quarter.
This is also when we look for tax-loss harvesting opportunities in your portfolio, or conversely, whether it makes sense to realize some gains strategically if you have the capacity to take on a bit more taxation in a lower-income year
New for 2026: Increased SALT Deduction Cap
The state and local tax (SALT) deduction (which includes property taxes) has been capped at $10,000 since 2017. That cap is now $40,000 through 2030, then reverts to $10,000.
For most of you, this won’t drastically change your situation. But if you own property in multiple states or have family members in high-tax areas like California, New York, or Texas, this increase could be meaningful. Early-year planning gives us time to evaluate whether itemizing makes sense now when it didn’t before.
Late-Year Tax Strategies We Explore Together
By the time we reach the final quarter, we’re not scrambling to invent a strategy from scratch. Because we’ve been planning together since January, we’re executing a plan we’ve been refining all year.
Here are the strategies we typically focus on in the final quarter:
Retirement Funding
We’ll make sure you’ve maximized contributions to your 401(k), IRA, or SEP before year-end. If you’re self-employed or a business owner, this is critical and something we monitor closely throughout the year.
Capital Gains Planning
We can also potentially offset gains with losses or strategically realize gains if you’re in a lower tax bracket this year.
I’m currently working with a client who has a highly concentrated corporate stock position. The tax burden to sell would be significant, but since his income needs are met through more diversified investments, we’reexploring ways to reduce this exposure while satisfying his philanthropic interests. He’s considering gifting shares to family members and charitable organizations, which allows him to use his wealth intentionally without incurring unnecessary tax expenses.
Roth Conversions
This is one of the most common strategies we implement in the final quarter. Converting traditional IRA funds to a Roth means paying ordinary income tax now, but those funds grow tax-free for life. The key is understanding your tax burden for the year so we can help you make an informed decision about how much to convert.
Sometimes we aim to stay within a certain marginal tax bracket. Other times, we’re more focused on helping you understand the consequences so you can decide what makes sense for your situation.
New for 2026: Charitable Giving
If charitable giving is part of your financial picture, we want to talk about this sooner rather than later, so you know all your options and can give intentionally.
Starting in 2026, you’ll only be able to deduct charitable donations exceeding 0.5% of your adjusted gross income.
Let’s break down what this means with an example:
- Imagine your AGI is $100,000
- $100,000 × 0.005 = $500 (not deductible)
If you donate $1,200 during the year, you subtract the $500 exclusion, so only $700 of your $1,200 donation is deductible.
This applies to cash donations, appreciated stock gifts, and contributions to charitable organizations. If you’ve been consistently charitable (tithing at church, supporting nonprofits) this change can significantly reduce your deductibility.
Related: Click here to read “Strategic Giving: Three Ways to Give More Intentionally in 2026”
We’re bringing this into our early-year conversations because it’s not just a tax question. For families where charitable giving reflects deeply held values, being told that giving is suddenly “worth less” from a tax perspective can feel discouraging. If this resonates with your situation, let’s discuss it in our next conversation.
Looking Ahead: What to Expect as We Navigate 2026 Together
As we move through the year, we’ll continue our regular planning conversations with the 2026 tax changes in mind.
- If you’re approaching 65, we’ll make sure you’re positioned to take advantage of the senior bonus deduction.
- If charitable giving is important to you, we’ll discuss whether accelerating donations into 2025 makes sense.
- And if you have questions about how any of these changes affect your specific situation, we’re always here to talk through them.
That’s the benefit of year-round planning: You’re never wondering whether you’re missing something or whether you should have acted sooner. We’re monitoring these changes on your behalf and bringing them into our conversations when they’re relevant to your goals.
If something about 2026’s tax changes caught your attention or you’d like to discuss how they might affect your family specifically, reach out to us—we’re always here.
And if you’re not yet working with EverPar but are wondering what it would feel like to have a trusted partner thinking through these decisions with you, we’d welcome that conversation. Schedule a complimentary Foundation Session to explore whether our approach to wealth management aligns with what you’re looking for.
EverPar Advisors LLC (“EverPar”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where EverPar and its representatives are properly licensed or exempt from licensure.
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