How to Plan for Year End Under the New Tax Rules?
Manage your income with the “ACA cliff” in mind.
Shanti
10/10/20261 min read
How to Plan for Year End Under the New Tax Rules?
The CNBC article highlights several strategies financial advisors recommend for tax planning in 2026:
1. Manage your income with the “ACA cliff” in mind.
Your adjusted gross income, or AGI, can affect the premium tax credit for Marketplace health insurance. The article says that after the enhanced credits ended in 2025, some households may no longer qualify for subsidies in 2026 if their income is even one dollar above a certain limit. The article cites a limit of about $63,000 for one person and about $129,000 for a family of four. One suggested strategy, if you have an eligible health plan, is to contribute to a Health Savings Account, or HSA, which may lower your AGI.
2. Use the new tax deduction for charitable donations.
According to the article, starting in 2026, taxpayers who do not itemize deductions may also claim a tax deduction for cash donations to eligible charities, up to $1,000 for single filers and $2,000 for married couples. This amount is deducted from taxable income. A $2,000 donation does not mean a $2,000 reduction in taxes.
3. Time your charitable donations.
The article says new rules may limit the charitable deduction for people who itemize. In 2026, donations must exceed 0.5% of AGI to be deductible. The effective value of this deduction is also limited for some high income taxpayers. One suggested strategy is to combine donations that you would otherwise make over several years and contribute them in a single year. A donor advised fund can receive a larger contribution at once and distribute the money to eligible charities over time. Donating stocks or other assets that have increased in value may also help you avoid capital gains taxes.
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