Changes in tax laws and economic uncertainty highlight new wealth management challenges, particularly for high-income professionals moving into 2026. How can you continue to work toward your financial goals without facing complex tax implications? This guide explores different tax strategies so you can plan accordingly.
Filing your annual tax return could come with surprises if you don’t prepare early. Before you jump into the process, review your current financial situation with a professional. Inquire about a tax summary of your investment portfolio and other forms of income for a quick refresher on all of your money moves in 2025.
Rather than scrambling to plan for 2026, you’ll have a better idea of your overall finances and may use this information to your advantage. Don’t hesitate to ask for a tax summary so you can look at the bigger picture before it’s time to file your return.
For high-income professionals moving into 2026, their income may not always end up in a retirement account. This may cause them to miss out on some notable deductions for the 2025 tax year. A straightforward way to address this issue is by making a year-end contribution to a 401(k), 403(b), IRA, or other qualifying retirement account.
The IRS sets yearly contribution limits on each of these accounts, including:
Depending on income limits and individual plan rules, you could place additional funds into your retirement account before December 31. Making the maximum contribution to your retirement account may grant you some tax deductions that reduce your taxable income.
All high-income professionals moving into 2026 must be aware of how standard and itemized deductions work. Suppose you’re a single earner or married but choose to file your return separately. If you opt for the standard deduction in 2025, you can deduct your taxable income by $15,750 and $16,100 in 2026.
Bear in mind that taking the standard deduction doesn’t allow you to deduct charitable donations separately, though changes are on the horizon for 2026. Consider itemizing your return so you can list all of your possible deductions. State and local tax deductions now have a limit of $40,000, up from the previous $10,000 cap.
By itemizing your return, you may be able to reduce your taxable income by several thousand dollars more, depending on your filing status.
Once new tax laws go into effect on January 1, 2026, expect big changes when it comes to charitable giving opportunities. High-income professionals moving into 2026 should consider how new charitable deduction limits will impact their financial goals.
A new charitable deduction floor will go into effect, which allows you to only deduct donations that are greater than 0.5% of your adjusted gross income. Rather than deducting the entire donation on your itemized return, you’ll miss out on whatever amount is 0.5% of your AGI.
Plan for year-end donations now and prepare for the changes that await in 2026.
For high-income professionals moving into 2026, new IRS guidelines can raise some questions. Consider reaching out to Levy & Associates before you begin filing your taxes. Our knowledgeable consultants understand how these changes may impact you and are prepared to recommend certain strategies that suit your particular circumstances.
To connect with a professional tax consultant, call (800) 829-5389 or submit our convenient online form today.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.