Tax law rarely makes for exciting dinner conversation. But several changes taking effect in 2026 may be worth talking about—especially when they could affect how much your family saves, gives, invests or ultimately pays in taxes.
Recent federal tax legislation made a few provisions permanent while introducing some new opportunities. Here are a few worth having on your radar.
A larger standard deduction. For 2026, the standard deduction increases to $32,200 for married couples filing jointly, $16,100 for single filers and $24,150 for heads of household. While higher deductions are good news, they can also change the math around itemizing deductions and the timing of charitable gifts.
A new charitable giving benefit—even if you don’t itemize. Beginning in 2026, taxpayers who take the standard deduction can still receive a deduction for qualifying cash contributions to charity—up to $1,000 for an individual or $2,000 for a married couple filing jointly. That creates a new tax incentive for charitable giving even when a taxpayer doesn’t have enough itemized deductions to exceed the standard deduction.
An extra deduction for many taxpayers 65 and older. Through 2028, eligible taxpayers age 65 or older may claim an additional $6,000 deduction per person, on top of the existing senior deduction. The new deduction begins to phase out when modified adjusted gross income exceeds $75,000 for an individual or $150,000 for married couples filing jointly. Importantly, it may be available whether you itemize or take the standard deduction.
A new way to start saving for children. One of the most talked-about additions is the new Trump Account, a tax-advantaged investment account for children under 18 with a valid Social Security number. Children born from 2025 through 2028 who meet eligibility requirements can receive a one-time $1,000 contribution from the federal government.
Parents, grandparents and others can contribute, with most contributions subject to a combined $5,000 annual limit during the account’s growth period. Employers can also contribute up to $2,500 annually under qualifying programs, with that amount counting toward the $5,000 limit. Contributions began July 4, 2026, making this a particularly timely planning conversation for families and grandparents.
The bigger lesson? Plan before December. Tax planning is most valuable when there is still time to act. Changes in income, retirement, charitable giving, investments, or a new child or grandchild can create opportunities that are easily missed once the calendar turns to January.
At CD Torrance & Associates, we believe good tax planning isn’t simply about preparing a return. It’s about looking ahead, understanding how changes apply to your situation and making thoughtful decisions before year-end.
Because when it comes to taxes, a little planning in October can be far more valuable than a surprise in April.
Tax laws and individual circumstances vary. Consult your tax professional regarding how these provisions apply to your situation.
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