2025 Tax Tips & 2026 Tax Strategy Checklist: What to Do Now

By D. Christopher Winans, EA

For the 2025 tax year, most last-minute deductions needed to be completed by December 31, 2025. Even though year-end has passed, there are still tax strategies you could use to lower your 2025 tax liability, such as contributions to IRAs and health savings accounts (HSAs) that can be made until the tax filing deadline of April 15, 2026.

At Fidelis Tax & Accounting, we take a proactive approach to tax management and financial planning for our clients. Getting ahead of the tax curve is the core of our approach and how we help clients plan ahead for better financial outcomes.Let’s take a look at several of our recommendations to both save on taxes in 2025 and to plan ahead for the 2026 tax year.

Actions to Save 2025 Tax Liability with Deadlines in 2026

You have until the general tax filing deadline of April 15, 2026, to make contributions for the 2025 tax year for the following accounts:

• Traditional or Roth IRA contributions:

  • 2025 limit: $7,000, plus an additional $1,000 catch-up contribution if age 50 or older.

  • Eligibility for deduction or contribution may be limited by your income level and workplace retirement plan participation.

• Health savings account (HSA) contributions:

  • 2025 limits: $4,300 for self-only coverage and $8,550 for family coverage, with an extra $1,000 catch-up if age 55 or older.

• SEP IRA contributions: For self-employed individuals, employer contributions to a SEP IRA can be made as late as your extended 2025 tax filing deadline (October 15, 2026). 

Considerations to Plan Ahead for 2026

Early in the year is the best time to get your financial house in order and start tax savings for 2026. Here are our top ideas:

Key Year-Long Deferral Opportunities for 2026 

• Employer-sponsored retirement plans (401(k), 403(b), 457(b), TSP): Contributing up to the maximum allows for pre-tax salary deferrals, which reduces your current AGI. Try to maximize your employer’s matching contributions as best as possible.

  • Standard limit: The employee elective deferral limit is $24,500.

  • Age 50+ catch-up: If you are age 50 or older, you can make an additional catch-up contribution of $8,000, for a total possible employee contribution of $32,500.

  • Ages 60-63 enhanced catch-up: A special catch-up limit of $11,250 is available for participants ages 60-63, if the plan allows it.

  • Note for high earners: If you earned more than $145,000 in FICA wages in the prior year (2025), your catch-up contributions must be made as Roth (after-tax) contributions beginning in 2026.

• Traditional individual retirement arrangements (IRAs): Contributions may be tax-deductible, depending on your income and whether you are covered by a workplace retirement plan.

  • Standard limit: The total combined annual contribution limit for traditional and Roth IRAs is $7,500.

  • Age 50+ catch-up: If you are age 50 or older, you can contribute an additional $1,100 catch-up contribution, for a total of $8,600.

Actionable Steps

• Maximize contributions early: Start or increase your retirement account contributions now. Consistently funding throughout the year is more effective than waiting until the deadline.

• Review employer plans: Check if your employer offers Roth 401(k) options and if you need to adjust your catch-up contribution selection for 2026 based on the new high-earner rule.

Consider Year-Long Charitable Giving Strategies

Fidelis Tax & Accounting is a strong believer in charitable giving. Strategic charitable giving in 2026 involves adapting to new tax rules that offer a universal deduction for non-itemizers but imposes a 0.5% AGI floor and a 35% deduction cap for high-income itemizers. 

For Taxpayers Who Take the Standard Deduction

If you do not itemize deductions (which is expected for about 86% of taxpayers), you can now claim a new “above the line” deduction for cash contributions. 

• Deductible amount: Up to $1,000 for individual filers and $2,000 for married couples filing jointly.

• Qualifying gifts: Must be cash contributions made directly to qualified public charities (e.g., churches, schools, food banks).

• Exclusions: Contributions to donor-advised funds (DAFs) or private foundations do not qualify for this universal deduction.

• Action step: Keep records of your cash donations to take advantage of this new benefit on your 2026 return. 

For Taxpayers Who Itemize Deductions

If you itemize, new limitations will affect the value of your deductions: 

• 0.5% AGI floor: You can only deduct the portion of your total charitable contributions that exceeds 0.5% of your adjusted gross income (AGI). For example, if your AGI is $200,000, the first $1,000 of donations is not deductible.

• Deduction cap for high earners: For taxpayers in the top 37% tax bracket, the effective tax benefit of itemized deductions is capped at 35%.

• Key strategy: “bunching” contributions: To clear the 0.5% AGI floor, consider concentrating multiple years’ worth of donations into a single year, perhaps using a DAF to manage the disbursement timing to charities. 

General Strategies for All Donors

• Donate appreciated assets: Donating long-term appreciated securities (stocks, mutual funds) directly to a charity or DAF remains highly tax efficient. You can deduct the fair market value and avoid capital gains tax on the appreciation.

• Qualified charitable distributions (QCDs): For donors aged 70½ and older, QCDs are an excellent way to give. You can transfer up to an inflation-adjusted annual limit (e.g., $111,000 in 2026) directly from your IRA to an eligible charity, satisfying your required minimum distribution (RMD) and excluding the amount from your taxable income. QCDs are not subject to the new AGI floor or deduction cap.

• Use charitable trusts: For high-net-worth individuals, vehicles like charitable remainder trusts or charitable lead trusts can provide income and estate planning benefits while supporting causes.

• Research charities: Use independent evaluators like Charity Navigator, Candid, or CharityWatch to vet potential recipients and verify your funds are used effectively.

Your Entity Structure and Compensation Programs Matter

If you are a small business owner, your business needs and goals will likely change over time and the initial structure chosen may no longer be optimal. A year-end review confirms alignment and addresses potential issues before they carry into the new year. 

• Maximize tax savings: Different structures offer varying tax benefits. For example, transitioning from a sole proprietorship or standard LLC to an S corporation could save significant self-employment taxes by allowing you to take some income as distributions rather than salary.

• Enhance liability protection: As your business grows in revenue, operations, and number of employees, so does your risk exposure. Reviewing your structure can help personal assets remain protected from business debts and lawsuits.

• Simplify governance and succession: If you have added partners or are planning for an exit or transition of ownership, the right legal framework is vital for a smooth process and to prevent future disputes.

• Adapt to new tax laws: Tax laws are subject to change. A year-end review with a tax advisor helps you adapt to new provisions and leverage available deductions and credits specific to your entity type for the 2026 tax year. 

Compensation planning for the new year demands foresight to balance competitiveness, compliance, and budget. 

• Confirm compliance with regulations: 2026 brings new potential enforcement activities and policy updates. Reviewing compensation plans now helps to maintain compliance and avoid potential penalties.

• Optimize tax efficiency:

  • Bonuses and profit-sharing: Structuring bonuses and profit-sharing contributions can offer a tax deduction for the business in the current year and can be an effective employee retention tool.

  • Retirement contributions: The end of the year is an ideal time to evaluate retirement plans to maximize deductions.

  • Owner compensation: For pass-through entities, owner compensation planning can significantly impact the qualified business income (QBI) deduction. A year-end review helps meet reasonable compensation standards to avoid audit issues.

Ultimately, performing these reviews provides the clarity and time necessary to make informed, proactive decisions that set your business up for a successful 2026.

How Are You Prepared to Save in 2026?

If there’s one tenet in the tax and financial world we’ve seen work time and time again, it’s that strategic, proactive planning often yields the best results. To get started with your 2026 strategy, learn more about how Fidelis partners with our clients to meet their tax and accounting needs. 

Contact us by calling (443) 760-4001, emailing info@fidelistaxandaccounting.com, or via our social media channels. We look forward to speaking with you!

Frequently Asked Questions

What tax planning strategies are still available to lower my 2025 tax bill?

Even after year-end, there are still meaningful tax planning opportunities for 2025. Contributions to IRAs, HSAs, and certain self-employed retirement plans can be made up until the April 15, 2026 filing deadline (or later with extensions). For high-income earners, these deductions can reduce taxable income while supporting long-term savings goals. Working with a proactive tax advisor helps you use these last-chance strategies correctly and efficiently.

How should high-income earners approach tax planning for 2026 differently?

High-income earners benefit most from year-round tax planning rather than last-minute moves. This includes maximizing employer retirement plans, coordinating Roth vs. pre-tax contributions, planning charitable giving strategically, and reviewing entity structure and compensation. Early planning allows deductions and deferrals to be layered thoughtfully, helping reduce surprises and improve overall tax efficiency.

Which tax deductions matter most for high-income taxpayers going forward?

For high-income taxpayers, the value of deductions increasingly depends on timing and structure. Retirement contributions, charitable strategies like donating appreciated assets or using QCDs, and business-related deductions tied to entity structure can all have an outsized impact. Fidelis Tax & Accounting helps high-income earners evaluate which deductions are most effective under current tax law and how to align them with broader financial and business goals.

About Christopher

D. Christopher Winans is the President and Founder of Fidelis Tax & Accounting, a proactive, advisory-driven accounting firm based in Annapolis, Maryland, serving clients across 45 states. A licensed Enrolled Agent, Chris is authorized to represent clients before the IRS and state tax authorities nationwide. His career path (from the medical and law enforcement fields to financial planning and taxation) gave him a unique perspective on problem-solving and the importance of planning ahead. When he discovered the need for more proactive, strategy-based tax support, he pursued his EA designation and launched Fidelis to fill that gap.

Since founding Fidelis in 2016, Chris and his team have built a national practice rooted in integrity, open communication, and personalized service. The firm offers a full suite of tax and accounting services, with a strong emphasis on customized tax strategy, ongoing planning, and client education. 

Outside the office, Chris enjoys spending time with his wife, Courtney, and their daughter, Parker. The family is actively involved in Bay Area Community Church and Arnold Christian Academy, where they value community, faith, and service. To learn more about Christopher, connect with him on LinkedIn.