Tax Planning
Tax Planning Tips for 2026: Making the Most of Inflation Adjustments and New Perks
With inflationary adjustments and new laws like the Working Families Tax Cuts, savvy taxpayers can seize benefits through strategic planning for 2026.
By NomadicTax Research Team • 5-8 min read • July 10, 2026
## Major Inflation Changes You Should Know for 2026
- **Standard deduction** increased to **$32,200 for married filing jointly**, **$16,100 for singles**, and **$24,150 for heads of households**. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai))
- For the **alternative minimum tax (AMT)** the exemption amount for single filers is **$90,100**, phasing out at $500,000; married couples filing jointly have a larger threshold. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai))
- **Estate tax exclusion** jumped to **$15 million** for decedents in 2026. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai))
- Enhanced **employer-provided childcare tax credit** increases maximum credit amounts substantially. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai))
- Key changes to **retirement contribution limits**: 401(k) contribution limit is now $24,500; IRA contribution limit moves up to $7,500. Catch-ups also increased under SECURE 2.0. ([irs.gov](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500?utm_source=openai))
## Take Advantage of the Enhanced Deduction for Seniors
If you (or your spouse) are **65 or older**, you can claim an **additional deduction of $6,000 per person**—on top of the standard deduction—for the tax years **2025 through 2028**, provided your income doesn’t exceed $75,000 ($150,000 if married filing jointly). ([irs.gov](https://www.irs.gov/newsroom/check-your-eligibility-for-the-new-enhanced-deduction-for-seniors?utm_source=openai))
## Strategic Moves to Maximize Your Refund or Reduce Taxes
- **Bunch itemized deductions**: With higher inflation adjustments, grouping deductions like medical expenses or charitable gifts in one year might push you past standard deduction thresholds.
- **Retirement account contributions**: Max out your 401(k), IRA or SIMPLE plan contributions to benefit from the higher limits.
- **Education credits**: Review eligibility for enhanced education credits or employer childcare credits, especially if you've had qualifying changes.
- **Estate planning**: With the elevated estate exclusion, now is a good time to revisit trusts or gifting strategies.
## Example Scenarios
- **Young professional**: Sara, 30, single, earns $90,000. She maxes out her 401(k) and Roth IRA using new contribution limits, takes advantage of standard deduction, and makes charitable contributions in one year to cross threshold for itemizing.
- **Retired couple**: John & Linda, both 66, have combined income of $140,000. Both qualify for enhanced senior deductions. Ensure incomes under phase-out thresholds to claim full benefit.
## Risks and Cautions
- Income phase-outs matter. Exceeding thresholds for AMT, senior deductions, or credits can reduce benefits sharply.
- Don’t assume all state laws conform—many states still use older thresholds or do not offer similar deductions.
- Keep current with upcoming IRS notices—proposed guidance might alter what's confirmed today.
**Bottom line:** Inflation adjustments in 2026 are more than just numbers—they’re opportunities. Whether you’re planning retirement, managing investments, or balancing family responsibilities, aligning your tax moves with these changes can yield meaningful savings.