As we look toward the upcoming 2026 tax season, a multitude of changes to the tax code, known as the OBBBA (Overhaul of Business and Beneficiary Act), are set to take effect. This comprehensive overhaul will significantly impact both individual taxpayers and businesses. With the new regulations around the corner, it is crucial to start preparing early to navigate these changes effectively. Heres how you can prepare yourself:

1. Understanding the New Tax Brackets and Rates: The restructured tax brackets and modified rates mean that your current withholding might not be optimal. Evaluate your current tax situation and consider adjusting your withholdings to avoid a surprise tax bill or a smaller refund.
2. Maximize Retirement Contributions: One of the most advantageous ways to reduce your taxable income is by maximizing contributions to retirement accounts. The OBBBA adjustments enhance the limits for certain types of retirement accounts, making now a great time to increase your contributions and take advantage of these new opportunities.
3. Stay Informed About Deduction Changes: Several itemized deductions and credits have been modified under the OBBBA. These changes might affect everything from mortgage interest deductions to educational credits. Keep abreast of these updates to ensure you're not missing out on any potential tax savings.
4. Allocating Resources to Health Savings Accounts (HSAs): With adjustments to the qualifications and benefits of HSAs, increasing your contributions can provide a triple tax benefitcontributions are tax-deductible, the account grows tax-free, and money can be withdrawn tax-free for qualified medical expenses.
5. Professional Guidance on New Business Deductions: For business owners, the OBBBA introduces several new deductions and alters existing ones. Professional advice is more vital than ever to understand these changes and adapt your business strategies accordingly.

The year 2026 is not just another tax year; its a critical time that requires diligent preparation under the new OBBBA regime. Whether you're an individual taxpayer or a business owner, being proactive will ensure you are placed best to meet your tax obligations as well as optimize your financial strategy.

Amidst these significant tax changes, one of the most effective strategies to reduce your tax liability is through strategic giving. Heres how:

• By setting up private foundations, taxpayers can enjoy the dual benefit of tax deductions and the ability to direct funds to causes they support.
• Donor-Advised Funds (DAFs) offer a simpler, less expensive alternative to private foundations, with similar tax benefits but requiring significantly less management and no mandatory payout ratios.

These strategic giving methods not only maximize your contributions to society but also optimize your tax benefits, aligning financial goals with philanthropic efforts.

Want to Save Money on Taxes? Don't miss out on a chance to keep more of what you earn! At Together CFO, we focus on smart tax strategies that last Structures Over Loopholes. Schedule a call with us today to find out how we can help you pay less in taxes. It's simple and free to get started. Click here to book your consultation now!

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