Sample issue. Written by AI for a fictional firm to show format and quality. Subject line: "Year-end 2026: 6 tax moves to consider before December 31". Preheader: "New charitable rules, 2026 retirement limits and the higher 1099 threshold."

Year-end 2026: what to consider before December 31

From Oak & Ledger CPAs (sample firm)

Hi there,

The 2025 tax law known as the One, Big, Beautiful Bill (OBBB) changed several rules that take effect for the 2026 tax year: the return you'll file in 2027. Some of them reward acting before December 31. Here are six items to review. We're happy to help you run your numbers.

1. Charitable giving has new rules for 2026

If you take the standard deduction: starting in 2026, you can deduct up to $1,000 of cash gifts to qualifying charities ($2,000 for married couples filing jointly). Gifts to donor-advised funds generally don't qualify. Keep receipts or bank records.
If you itemize: starting in 2026, charitable gifts are deductible only to the extent they exceed 0.5% of your adjusted gross income. With $200,000 of AGI, for example, the first $1,000 of gifts isn't deductible.

Talk to us before making a large gift. Timing and method (cash, appreciated stock, donor-advised fund) can change the tax result.

2. Check your standard deduction versus itemizing

For 2026, the standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household. If you're close to the line, bunching deductions into one year may help. Your situation determines whether it does.

3. Use your 2026 retirement contribution room

401(k), 403(b), most 457 plans and the Thrift Savings Plan: up to $24,500 in employee deferrals.
Catch-up (age 50+): an extra $8,000, or $11,250 if you're 60-63 in 2026.
IRA: up to $7,500 (plus $1,100 catch-up at 50+). IRA contributions for 2026 can generally be made until the April 2027 filing deadline. Workplace plan deferrals generally must come out of 2026 paychecks.

4. Business owners: the 1099 threshold went up

For payments made after December 31, 2025, the reporting threshold for Forms 1099-NEC and 1099-MISC rose from $600 to $2,000. Review your 2026 vendor and contractor payments now. Collect W-9s from anyone you paid $2,000 or more, so January filing goes smoothly. 1099-NEC forms are generally due to recipients and the IRS by January 31. In 2027 that date falls on a weekend, so the deadline moves to the next business day.

5. Payment apps: the 1099-K threshold is back to $20,000

Payment platforms and marketplaces generally must issue Form 1099-K only if you received more than $20,000 across more than 200 transactions. All income is still taxable whether or not you receive a form, so keep your own records.

6. Don't forget the January 15 estimated payment

If you pay estimated tax, the fourth-quarter 2026 payment is due January 15, 2027. If your income changed a lot this year, let us check whether your payments are on track to avoid an underpayment penalty.

Want a year-end review? Reply to this email and we'll send available times. If you'd like us to run the numbers first, send last year's return and your year-to-date figures.

The team at Oak & Ledger CPAs

Drafted with AI assistance and reviewed by Oak & Ledger CPAs (sample firm).

This newsletter is general information, not tax, legal or accounting advice for your situation. Tax rules have exceptions and limits not covered here. Please consult Oak & Ledger CPAs (sample firm) before acting.

Sources: IRS IR-2025-103 (2026 inflation adjustments, including OBBB amendments); IRS IR-2025-111 and Notice 2025-67 (2026 retirement limits); IRS Publication 6196 (2026 charitable deduction for non-itemizers); IRS IR-2025-107 (Form 1099-K threshold); Crowe, "OBBB Eases and Adds Info Reporting Obligations" (1099-NEC/MISC $2,000 threshold).

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