As we enter the second half of 2026, now is an ideal time to review your tax strategy. Many tax-saving opportunities require action before year-end, and waiting until tax season may limit your available options.

A mid-year tax review can help you evaluate your income, deductions, retirement contributions, investments, and other planning opportunities while there is still time to make adjustments.

Review Your Estimated Tax Payments

If you are self-employed, own a business, earn investment income, or have variable income, your tax situation may have changed since your last estimate.

Reviewing your projected income and estimated tax payments now can help you avoid unexpected tax liabilities and better prepare for year-end obligations.

Maximize Retirement and Health Savings Contributions

Tax-advantaged accounts can help support long-term financial security while potentially providing current tax benefits.

For 2026, employees can contribute up to $24,500 to eligible 401(k) plans. Individuals age 50 and older may be eligible for an additional $8,000 catch-up contribution. Employees who turn age 60, 61, 62, or 63 during the year may qualify for an increased catch-up contribution of up to $11,250, subject to plan rules and eligibility requirements.

Beginning in 2026, certain higher-income employees may be required to make eligible catch-up contributions on a Roth basis if their retirement plan offers a Roth feature and they meet applicable income requirements.

If you are eligible for a Health Savings Account (HSA), review your contributions and consider whether increasing them may align with your healthcare and tax planning goals.

Review Charitable Giving Opportunities

Thoughtful charitable planning can help support organizations you care about while potentially providing tax benefits.

Before year-end, review your charitable contributions, documentation, and whether itemizing deductions may provide a greater benefit based on your individual circumstances.

Evaluate Your Investment Portfolio

Mid-year is a good time to review potential capital gains and losses.

Selling certain investments that have declined in value may allow you to use capital losses to offset capital gains. If losses exceed gains, you may generally be able to deduct up to $3,000 of net capital losses against ordinary income each year, with remaining losses carried forward.

Before making investment decisions, consider reviewing your strategy with your tax and financial advisors to determine whether tax-loss harvesting or other approaches may be appropriate for your situation.

Review Deductions and Other Tax Planning Opportunities

Tax rules, income levels, and financial circumstances can change from year to year. Review whether taking the standard deduction or itemizing deductions may provide the greatest benefit for your situation.

Potential areas to review may include charitable contributions, state and local taxes, mortgage interest, retirement savings, and other qualifying expenses.

Consider Alternative Minimum Tax (AMT) Exposure

Some taxpayers may be affected by the Alternative Minimum Tax, particularly those with higher income, incentive stock options, significant deductions, or other AMT-related items.

Reviewing potential AMT exposure before year-end may help identify opportunities to adjust the timing of income or deductions.

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