Two new charitable rules start with 2026 returns.
If you take the standard deduction, 2026 is the first year cash gifts to charity can still lower your federal tax. IRS Publication 6196 sets the limit at $1,000, or $2,000 for married couples filing jointly. The gift has to be cash to a qualifying charity, and gifts to donor-advised funds generally do not qualify.
If you itemize, the rule runs the other way. Starting in 2026, only the part of your charitable gifts above 0.5% of adjusted gross income is deductible. A household with adjusted gross income of $150,000 loses the first $750 of gifts, so spreading small gifts across several years may count for less than grouping them into one year. That is a planning question worth running with your actual numbers.
Check your withholding before the last paychecks.
A new job, a side business, or one of the new deductions can leave your withholding off for the year. The IRS recommends its Tax Withholding Estimator for this check, and the IRS says the tool now reflects the deductions for tips, overtime, car loan interest, and seniors.
A new Form W-4 with your employer only affects the paychecks left in the year, so the earlier you run the estimate, the more room you have to adjust.
Retirement and HSA contributions: two different deadlines.
401(k) deferrals come out of your paychecks, so the last 2026 paycheck is the last chance to add to them. The 2026 limits are below.
- 401(k), 403(b), and most 457 plans: $24,500.
- Catch-up for age 50 and older: $8,000, or $11,250 for ages 60 through 63.
- IRA: $7,500, plus a $1,100 catch-up at age 50 and older.
- HSA: $4,400 for self-only coverage and $8,750 for family coverage, plus $1,000 at age 55 and older.
IRA and HSA contributions for 2026 can be made until the April 15, 2027 filing deadline. That gives you time to decide after the year closes, once you can see the full return.
New baby in 2025 or 2026? Look at a Trump account.
Children born from 2025 through 2028 who are U.S. citizens with a valid Social Security number can receive a one-time $1,000 Treasury contribution to a Trump account. The election is made on Form 4547, which can be filed with the 2026 return. Our guide to Trump accounts for children covers the details.
Start the return file now.
December is a good month to set up a folder for 2026: charity receipts, year-end retirement and HSA statements, closing documents for any home purchase, and records of estimated payments. The tax preparation checklist covers the rest, and the 2026 deadline guide lists the dates that follow.
COMMON QUESTIONS
Questions you may have.
Can I deduct charitable gifts on my 2026 return if I do not itemize?
Yes, up to $1,000, or $2,000 for married couples filing jointly. The gift has to be cash to a qualifying charity, and gifts to donor-advised funds generally do not qualify.
What is the 0.5% floor on charitable gifts?
Starting in 2026, people who itemize can deduct only the charitable gifts above 0.5% of their adjusted gross income. The amount below that floor is not deductible.
Is it too late to contribute to an IRA for 2026 after December 31?
No. IRA and HSA contributions for 2026 can be made until the April 15, 2027 filing deadline. 401(k) deferrals have to come out of 2026 paychecks.