The new year isn't just about resolutions; it's the perfect time to get ahead on your tax strategy. While many people wait until April to think about taxes, smart tax planning starts in January, when you still have 12 full months to make moves that can save you thousands.
Whether you're a retiree enjoying the Sunshine State, a business owner in Central Florida, or a professional planning for the future, taking action now gives you the flexibility and time to maximize your tax situation for 2026.
Here's your guide to starting the year right.
Part 1: What You Need to Consider While Preparing Your 2025 Taxes
Before you can plan for 2026, you need to close out 2025 properly. Here are the key items to gather and consider:
Documents You'll Need
- W-2s and 1099 forms (wages, contract income, investment income)
- Investment statements showing capital gains, dividends, and interest
- Retirement account contributions (401(k), IRA, HSA)
- Charitable donation receipts (especially important if you itemize)
- Business expense records (if self-employed or a business owner)
- Mortgage interest statements (Form 1098)
- Property tax records (Florida property taxes are deductible)
- Health insurance premiums (if self-employed)
Key Questions to Ask Your Tax Preparer
- Did I maximize all available deductions and credits for 2025?
- Should I be itemizing or taking the standard deduction?
- How do the new tax law changes from the One Big Beautiful Bill Act affect my 2025 return?
- What estimated tax payments (if any) should I be making for 2026?
- Did I take advantage of all available retirement account contributions?
Common Mistakes to Avoid
Missing the IRA contribution deadline: You have until April 15, 2026 to make 2025 IRA contributions (traditional or Roth). If you haven't maxed out yet, you still have time.
Forgetting about HSA contributions: Like IRAs, you can contribute to your Health Savings Account for 2025 until the tax filing deadline.
Not tracking estimated taxes: If you're self-employed or have significant investment income, make sure you're staying current on quarterly estimated payments to avoid penalties.
Overlooking new 2025 deductions: The One Big Beautiful Bill Act created several new tax deductions that apply to 2025 taxes you'll file in 2026. If you received tips, overtime pay, or paid interest on an auto loan in 2025, you may qualify for new deductions. More on this below.
Part 2: What to Update with Your Financial Advisor for 2026
Once your 2025 taxes are handled, it's time to look forward. Here are the strategic conversations you should be having with your advisor now, while you have a full year to act.
- Review Your Retirement Contribution Strategy
2026 Contribution Limits:
- 401(k)/403(b): $23,500 (under age 50) | $31,000 (age 50+)
- IRA (Traditional or Roth): $7,000 (under age 50) | $8,000 (age 50+)
- SEP IRA: Up to $70,000 or 25% of compensation
- Solo 401(k): Up to $70,000 (under age 50) | $77,500 (age 50+)
Action Item: If you're not maxing out these accounts and can afford to, work with your advisor to adjust your paycheck contributions now. Small increases spread over 12 months are far easier than playing catch-up in December.
- Optimize Your Tax-Loss Harvesting Strategy
If you have a taxable investment account, tax-loss harvesting can help offset gains and reduce your tax bill. But this isn't something to think about once a year, it should be part of your ongoing strategy.
Action Item: Ask your advisor to review your portfolio for opportunities to harvest losses strategically throughout 2026, especially during market volatility.
- Consider Roth Conversions
If you're in a lower tax bracket now than you expect to be in retirement (or if you anticipate higher tax rates in the future), a Roth conversion might make sense.
Why now matters: Roth conversions take planning. You need to figure out how much to convert without pushing yourself into a higher tax bracket, and you need to have cash available to pay the taxes owed. Starting this conversation in January gives you time to strategize and execute.
Action Item: Model out different Roth conversion scenarios with your advisor to see if it makes sense for your situation in 2026.
- Review Your Estate Plan and Beneficiary Designations
Tax laws aren't the only thing that changes, so does your life. Marriage, divorce, births, deaths, relocations... all of these can impact your estate plan and tax situation.
Action Item: Schedule a beneficiary review with your advisor. Make sure your retirement accounts, life insurance policies, and other assets reflect your current wishes. This is especially important if you've moved to Florida recently, as estate laws vary by state.
- Evaluate Your Charitable Giving Strategy
If you're charitably inclined, there are tax-efficient ways to give that can maximize your impact and minimize your tax bill.
Strategies to Consider:
Qualified Charitable Distributions (QCDs): If you're 70½ or older, you can donate up to $105,000 directly from your IRA to charity (tax-free). This satisfies your Required Minimum Distribution (RMD) and reduces your taxable income.
Donor-Advised Funds (DAFs): Contribute appreciated stock or cash to a DAF, get an immediate tax deduction, and distribute to charities over time.
Bunching donations: If you're close to the itemization threshold, consider bunching multiple years' worth of charitable gifts into one year to exceed the standard deduction.
Action Item: If you give regularly to charity, talk to your advisor about structuring your giving in the most tax-efficient way.
- Business Owner Tax Planning
If you're a business owner here in Winter Garden or Central Florida, you have unique tax planning opportunities, but they require proactive planning.
Key Considerations:
- Are you maximizing retirement contributions through a SEP IRA, Solo 401(k), or other qualified plan?
- Should you be setting up an S-Corp or LLC structure to optimize self-employment taxes?
- Are you taking advantage of available business deductions (home office, vehicle expenses, equipment purchases)?
- The One Big Beautiful Bill Act made the Section 199A pass-through deduction permanent; are you maximizing this 20% deduction?
- Do you have a succession or exit strategy that minimizes taxes?
Action Item: Meet with both your financial advisor and CPA early in the year to align your business and personal tax strategies.
Part 3: Understanding the One Big Beautiful Bill Act Changes
In July 2025, Congress passed, and President Trump signed the One Big Beautiful Bill Act, the most comprehensive tax legislation since the 2017 Tax Cuts and Jobs Act. This law made many previous temporary provisions permanent and created several new tax breaks.
Here's what you need to know for your 2026 planning:
What Became Permanent (Starts 2026)
Individual Tax Rates: The seven tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) that were set to expire are now permanent.
Standard Deduction: The nearly doubled standard deduction is now permanent and got an additional boost for 2025-2028 (an extra $1,000 for single filers, $1,500 for head of household, $2,000 for married filing jointly).
Child Tax Credit: Now permanent at $2,200 per child (up from the previous $2,000) and will be adjusted for inflation annually.
Pass-Through Business Deduction (Section 199A): The 20% deduction for qualified business income is now permanent. If you're a business owner, this is huge.
Temporary New Deductions (2025-2028)
These provisions apply for four years and could significantly reduce your tax bill:
Senior Deduction (Age 65+): If you're 65 or older, you can claim an additional $6,000 deduction ($12,000 for couples where both qualify). This phases out for higher earners (starting at $75,000 for singles, $150,000 for joint filers).
"No Tax on Tips" Deduction: Workers in tipping industries can deduct up to $25,000 in qualified tips annually. This phases out for higher earners (starting at $150,000 for singles, $300,000 for joint filers).
"No Tax on Overtime" Deduction: You can deduct up to $12,500 ($25,000 for joint filers) of qualified overtime pay. This is specifically the "extra" portion of time-and-a-half pay required under federal labor standards. Phases out for higher earners (starting at $150,000 for singles, $300,000 for joint filers).
Auto Loan Interest Deduction: You can deduct up to $10,000 of interest paid on loans for new vehicles purchased for personal use (manufactured and assembled in the U.S.). Phases out for higher earners (starting at $100,000 for singles, $200,000 for joint filers).
SALT Deduction Increase (2025-2029)
For Florida residents, this may not matter much since we don't have state income tax, but if you're paying high property taxes or have moved from a high-tax state, the cap on state and local tax deductions temporarily increases from $10,000 to $40,000 (for taxpayers earning under $500,000).
What This Means for You
Action Item: Review your 2025 tax return with your CPA to see if you qualify for any of the new deductions. Then, work with your advisor to strategize how to maximize these benefits in 2026 and beyond.
Important 2026 Deadlines to Remember
- January 15, 2026: Q4 2025 estimated tax payment due
- April 15, 2026: 2025 tax return due | 2025 IRA/HSA contribution deadline
- April 15, 2026: Q1 2026 estimated tax payment due
- June 16, 2026: Q2 2026 estimated tax payment due
- September 15, 2026: Q3 2026 estimated tax payment due
- October 15, 2026: Extended 2025 tax return deadline (if you filed for an extension)
Florida-Specific Tax Advantages
At LaPorte Financial, we're proud to serve clients in Oakland, Winter Garden, Orlando, and throughout Central Florida. Living in our area comes with some real tax benefits:
No state income tax: Florida remains one of the few states with no personal income tax, which can result in significant savings, especially for high earners and retirees. This becomes even more valuable as federal tax rates are now permanently lower thanks to the recent tax law.
Homestead exemption: If you own your primary residence in Florida, make sure you've filed for the homestead exemption to reduce your property taxes.
Portability: If you're moving within Florida, you may be able to transfer (or "port") your Save Our Homes benefit to your new home, protecting you from sharp property tax increases.
Action Item: If you recently moved to Florida or purchased a home, make sure you've applied for your homestead exemption by March 1, 2026.
Don't Forget About Medicare Premiums (IRMAA)
If you're approaching or already on Medicare, your Modified Adjusted Gross Income (MAGI) from two years ago determines your Medicare Part B and Part D premiums. High earners can pay significantly more due to Income-Related Monthly Adjustment Amounts (IRMAA).
Action Item: If you're planning a large Roth conversion, stock sale, or other income event in 2026, model out the potential IRMAA impact for 2028. Sometimes spreading income over multiple years can help you avoid higher Medicare premiums.
The Bottom Line: Plan Now, Benefit All Year
Tax planning isn't a once-a-year event; it's an ongoing strategy. The decisions you make in January can have a lasting impact throughout the entire year and beyond.
At LaPorte Financial, we work with individuals, families, and business owners right here in Winter Garden and across Central Florida to develop comprehensive financial strategies that include proactive tax planning. We coordinate with your CPA to ensure that every aspect of your financial life works together efficiently.
Ready to make 2026 your most tax-efficient year yet?
Let's sit down and review your situation. Whether you're planning for retirement, managing a business, or simply looking to keep more of what you earn, we're here to help.
Contact LaPorte Financial today to schedule your 2026 tax planning consultation.
Disclaimer: This information is for educational purposes only and should not be considered tax or legal advice. Tax laws are complex and subject to change. Please consult with a qualified tax professional or CPA before making any tax-related decisions. LaPorte Financial does not provide tax or legal advice but works collaboratively with your tax and legal professionals to support your overall financial strategy.