Final Call for 2025 Tax Prep + 2026 Tax Planning
Autumn is the perfect time to get your financial ducks in a row for year-end tax planning. And wrap up last year, if you’re still waiting to file 2025. Here are the key deadlines, the 2026 numbers, and a few strategies to consider.
deadlines to plan by
Always: Tax planning Hearts Cash Flow.
Reach out to your tax pro to estimate tax due if your income has changed, or if you have had a significant sale or purchase of a significant asset (houses, business equipment).
If you made more money than usual freelancing, in your business, or selling an asset, set aside 30-40% for taxes, just in case.
September 15 and January 15: 2026 estimated tax payments. Pay online to avoid increasingly common processing delays.
October 15: The final deadline to file extended 2025 individual returns. Confirm with your tax pro that they have everything they need to file.
December 31: 2026 tax year to dos before 12/31
Complete your RMDs for 2026!
If you inherited an IRA or you’re over 73 years old, avoid a 25% penalty by taking your Required Minimum Distributions (RMDs).
You might be able to satisfy your RMD via Qualified Charitable Distributions (QCDs)? If you work with a financial planner, we recommend letting them know by November 15 so they can process the paperwork in time to get the money out to your non-profit heroes.
Fund your future self! Max out your 2026 retirement contributions:
401(k): By 12/31 fund$24,500, plus an $8,000 catch-up if you are 50 or older (or $11,250 catch-up if you are 60 to 63 years old).
New this year: if you earned more than $150,000 from your employer in 2025, any 401(k) catch-up contributions now have to go into a Roth account, to continue growing tax free until retirement.
IRA: $7,500, plus a $1,100 catch-up if you are 50 or older. Fund by April 2027.
Health Savings Account (HSA): $4,400 for self-only coverage or $8,750 for family coverage, plus a $1,000 catch-up if you are 55 or older. The HSA is one of the most tax-advantaged accounts there is, so if you are able, max it out, but don’t spend it! Most Modernist clients invest theirs for the long term to help fund healthcare in retirement. Fund by April 2027.
Year-end generosity
GiVING TO PEOPLE
In 2026 you can give up to $19,000 to any one person, or $38,000 as a couple, without any gift tax paperwork.
If you give more than that to a single person, you still have a $15 million lifetime exemption to draw on. You will likely need to file a gift tax return as part of your 2026 return.
GIVING TO CHARITY
We’re passionate about donating to the heroes working to make our world a better place. As Michelle reminded us: “we have the power to marry our hope with our action.”
Charitable deductibility rules changed under the 2025 OBBBA tax law. A few things worth knowing as you plan your 2026 gifts:
Ask your tax pro to calculate what is no longer deductible or help with year-end tax strategies.
If you itemize, only a portion of your giving is deductible now.
If you are in the top tax bracket, the value of your charitable deduction is now capped at 35%.
A new benefit, if you take the standard deduction, you can now deduct up to $1,000 for single filers ($2,000 for MFJ) in cash gifts to 501c3 charities.
Consider if you really “need” the deduction.
Consider bunching several years of giving into one year.
Replacing your RMDs from your IRA with QCDs (Qualified Charitable Distributions) is more valuable than ever, as limitations don’t apply.
Donate appreciated investment assets instead of cash
This is a midterm election year, and giving is one way to act on our hope.
What impact do you want to have this year? Some framing we find useful:
Build permission to shift your deductible gifts to non-deductible orgs.
For Modernist clients paying less than 15% average federal tax, we recommend skipping deductible gifts.
*To figure out your average rate: look at your last return, divide total tax due by total income.
If you take the standard deduction you’re not receiving a significant deduction anyway, so consider a 501(c)(4) as a powerful place to invest your dollars in the change we hope to see around us.
Direct versus legislative impact
(Might be) Tax-deductible: gifts to 501(c)3 organizations, like the Red Cross providing direct aid.
NOT deductible: gifts to politicians and 501(c)4 organizations, like Basic Rights Oregon, funding legislative advocacy and lobbying.
