A Fall Tax Planning Checkup Can Lead to Better Tax Outcomes in the New Year

November 1, 2026

Many unpleasant spring tax surprises can be prevented by taking a few key steps the previous fall. Adding these items to your fall tax checklist can help ensure that you do not leave money on the table when filing season arrives.

New Rules for Deducting Charitable Contributions

IRS rules that took effect in 2026 allow most people to deduct up to $1,000 in monetary donations to qualifying charities (up to $2,000 for joint filers), even if they do not itemize deductions. Keep a bank record or written communication from the charity documenting each monetary donation. For any single contribution of $250 or more, obtain a timely written acknowledgment from the charity that includes the required information about any goods or services received in return. Keep these requirements in mind as you plan your holiday giving, and watch out for charity impersonation scams that get more sophisticated every year. You can check whether an organization is eligible to receive tax-deductible contributions through the IRS Tax Exempt Organization Search tool.

To deduct larger donations or contributions of property, you will still need to itemize deductions. Beginning with tax year 2026, a “floor rule” now applies to itemized deductions for charitable donations. As a result, you may only deduct donations to the extent that they exceed 0.5% of your adjusted gross income (AGI). Your deduction may also be subject to an IRS limit, most commonly in the range of 30%-60% of your AGI.

The 2026 Annual Gift Exclusion

The federal annual gift tax exclusion generally allows you to give up to a specified amount per recipient each year without filing a federal gift tax return, provided the recipient can immediately use or enjoy the gift. Gifts that qualify for the annual exclusion do not use any of your lifetime federal gift and estate tax exemption. The 2026 annual exclusion amount is $19,000 per recipient, and you may use this exclusion for gifts to any number of recipients. Certain gifts and elections may still require a gift tax return. Each spouse has a separate annual exclusion, allowing a married couple to give a combined $38,000 per recipient in 2026. Electing to split a gift made by one spouse requires gift tax reporting, even if no gift tax is due.

Check Your FSA Balances and Make Plans Now to Use Up Funds

Workplace flexible spending arrangements (FSAs) generally have “use it or lose it” rules, but forfeiture deadlines and exceptions depend on your employer’s plan. Dependent care FSAs may offer a grace period that allows employees to use remaining funds for eligible expenses incurred after the plan year ends. Health FSAs may offer a limited carryover or a grace period of up to 2½ months after the plan year ends, but not both. Check your plan’s deadlines for incurring eligible expenses and submitting reimbursement claims, and plan to use funds that would otherwise be forfeited.

Many medical, dental and vision care appointments must be scheduled weeks in advance, so now is the time to get needed services on the calendar. A little advance planning can help ensure that you use your available benefits before your plan’s deadlines.