Year-End Tax Moves That Still Work in 2026
A practical checklist: bunching, retirement, QBI, estimated taxes, and what not to do in December.
Year-end planning is a calendar, not a philosophy. These are the moves that still change 2026 Form 1040 and business returns, and the ones that create audits.
Do these if they fit the facts
- Max employer retirement plans before the payroll cutoff. Employee deferrals cannot be funded in April; employer contributions often can.
- Bunch charitable gifts into a donor-advised fund in a year you will itemize, then take the standard deduction in the off year.
- Pay state estimates with the $40,400 SALT cap in mind. Extra January payments may not help 2026 federal itemizing.
- Place-in-service rules for equipment: Section 179 and bonus depreciation require the asset to be ready and available, not sitting in a crate.
- QBI wage and UBIA planning for specified service trades above the threshold — sometimes a December bonus or asset purchase is the entire 199A strategy.
- Harvest losses and watch the wash-sale 30-day window, including in IRAs.
Do not do these
- Backdate invoices or “share” a 1099 with a spouse’s business without substance.
- Prepay five years of rent to manufacture a deduction.
- Convert a hobby Schedule C loss into a “business” the week before Christmas.
- Ignore 1099-K and 1099-NEC that will arrive in January. The IRS already has the copy.
After year-end
January through April is for estimated-tax catch-up, retirement contributions that are still allowed, and filing extensions when records are incomplete. An extension to file is not an extension to pay. Pay the tax you can compute; penalty on an unpaid balance is cheaper than a made-up return.
General information for tax year 2026, not legal or tax advice. IRS programs depend on your filing history, assets, and collection statute. Talk with a representative before you send the IRS money or financials.