Families with Children

The child tax credit is $2,200 per qualifying child, with up to $1,700 refundable, and both the child and the parent claiming it must have a valid Social Security number. The child and dependent care credit is larger for 2026, up to 50% of eligible costs for lower and middle incomes, and the employer dependent care FSA limit rises to $7,500.

YEAR-END TAX PLANNING & PREPARATION

YEAR-END TAX PLANNING & PREPARATION GUIDE

As we approach the end of another year, it's time to start preparing for tax season!

At Pickler Accounting, we're committed to keeping you informed and helping you plan ahead. From important tax law changes and new deductions to filing deadlines and year-end planning opportunities, we've put together a comprehensive guide to help you navigate the upcoming tax season.

Explore the information below to learn what's new for 2026, what deadlines to keep in mind, and how you can prepare for a successful tax season.

Tax Changes

Tax Changes Affecting Your 2026 Return

Beginning in 2026, new tax legislation changes how charitable contributions are deducted. Taxpayers who take the standard deduction may now deduct up to $1,000 ($2,000 married filing jointly) of qualifying cash gifts to eligible charities. Only cash gifts to public charities count (gifts to donor-advised funds and supporting organizations do not), and you'll need bank records or charity receipts. For taxpayers who itemize deduction, charitable contributions are now only deductible to the extent they exceed 0.5% of your adjusted gross income. Additional limitations may also apply to taxpayers in the highest income tax bracket. With this new change, we want to ensure all our clients are aware of the potential deduction, even if they typically take the standard deduction. If you are a higher-income taxpayer who itemizes deductions, please contact our office so we can evaluate how these changes may affect your tax planning and charitable giving strategies.

Eligible taxpayers may qualify for deductions for qualified tips, qualifying overtime premium pay (the premium portion of FLSA-required overtime), qualifying vehicle-loan interest on new U.S.-assembled vehicles, and an additional deduction for eligible taxpayers age 65 or older, claimed on the new IRS Schedule 1-A. The caps are meaningful, at up to $25,000 of tips, $12,500 of overtime premium ($25,000 joint), $10,000 of vehicle loan interest, and $6,000 per senior spouse, but each has specific eligibility rules and income phase-outs, and these deductions reduce income tax but not payroll taxes. If any of these might apply to you, we can run the numbers.

For 2026, the SALT deduction cap is $40,400 ($20,200 if married filing separately), with a phase-down beginning above modified adjusted gross income of $505,000 ($252,500 if married filing separately) and a minimum cap of $10,000 ($5,000 if married filing separately). In 2030, the cap is scheduled to return to $10,000, so the window to be beneficial is limited. Important: the SALT deduction is available only if you itemize. If you take the standard deduction, a higher SALT cap does not change your tax. For Tennessee residents, who pay no state income tax, SALT generally means property taxes plus either actual or estimated sales tax.

Each year, you can claim either the standard deduction or itemize deductions, whichever gives you the larger tax benefit. Itemized deductions may include state and local taxes (subject to a limit), mortgage interest, charitable contributions, and medical expenses above 7.5% of your income.With the higher SALT limit, some homeowners may benefit more from itemizing, especially if they pay substantial property taxes, have mortgage interest, or make regular charitable gifts. We’ll compare both options when we prepare your return. If you’re close to the break-even point, a quick call before year-end can help us see whether timing payments or donations could make a difference.

Important Deadlines

Please review the schedule below for key dates and information due dates for the upcoming tax filing season. To help ensure timely preparation and filing, all required tax information must be received by our office by the dates listed below. Information received after these dates is not guaranteed to be completed by the applicable deadlines.

Tax Planning Deadline

Service	Information Due to Our Office
Year-End Tax Planning	December 4, 2026
W-2 and 1099 Preparation (Forms Only)	January 8, 2027

2027 Filing Deadlines

Title	Federal Filing Deadline	Information Due to Our Office
S Corporation and Partnership	March 15, 2027	February 15, 2027
Individual, C Corporation, and Trust	April 15, 2027	March 12, 2027
Nonprofit	May 17, 2027	April 19, 2027
S Corporation and Partnership, Extended	September 15, 2027	August 13, 2027
Trust, Extended	September 30, 2027	August 30, 2027
Individual and C Corporation, Extended	October 15, 2027	September 16, 2027
Nonprofit (990, 990-EZ, 990-PF), Extended	November 15, 2027	October 18, 2027

These dates are based on a calendar year-end. If you have a fiscal year-end, other dates may apply. Form 990-N (e-Postcard) is not eligible for an extension.

The January 8 deadline applies only to clients who use our office exclusively for W-2 and/or 1099 preparation. It does not apply to clients who utilize our office for ongoing payroll services, year-end payroll planning, or bookkeeping services that include 1099 preparation. All other deadlines apply as listed.

For our S corporation clients, if you have not processed any shareholder payroll during 2026, please contact our office immediately. To remain compliant with IRS requirements, any shareholder who performs services for the corporation must receive reasonable compensation in the form of wages, paid through payroll by December 31, 2026. To assist you, we will review your estimated business income and expenses, evaluate your year-end payroll requirements, and determine whether additional estimated tax payments may be needed.

Year-End Tax Planning

A little planning now can make a big difference when tax season arrives! At Pickler Accounting, we offer year-end tax planning services to help individuals and business owners review their financial situations, identify potential tax-saving opportunities, and prepare for the year ahead.

Year-end tax planning is available to all our clients, not just business owners.

Depending on your situation, our team can assist with:

Reviewing estimated business income and expenses

Reviewing marketplace health insurance credits

Determining whether additional estimated tax payments may be needed

Discussing potential year-end purchases

Choosing between itemizeing and the standard deduction

Evaluating RMDs and Roth conversions

Evaluating significant changes in income or charitable giving

What Information Do We Need?

To help us evaluate your tax situation, please provide the following information, as applicable:

Estimated business income and expenses

Estimated personal income from all sources

Federal or state estimated tax payments made during the year

Federal and state income tax withholding from W-2s, retirement distributions, and other sources

Any other information you believe may affect your 2026 situation

Year-End Tax Planning Deadline
December 4, 2026

To allow sufficient time to complete your year-end tax planning, please submit your information to our office no later than December 4, 2026.

Please contact our office for more information.

Getting Ready for Tax Season

To make tax season smoother, please start gathering:

Forms W-2, 1099, 1098, and 1095-A as they arrive in January

Property tax statements and charitable gift records, if you may itemize

Estimated tax payments, plus federal and state withholding from W-2s and retirement distributions

Retirement, IRA, and HSA contributions for 2026

Records of tips, overtime, or vehicle loan interest (if applicable)

Business owners: year-to-date income and expense records

THE CORE VALUES OF PWA

THE CORE VALUES OF PWA

OUR FAMILY DELIVERING SOLUTIONS FOR YOUR FAMILY.

THE CORE VALUES OF PWA

OUR FAMILY DELIVERING SOLUTIONS FOR YOUR FAMILY.

THE CORE VALUES OF PWA

OUR FAMILY DELIVERING SOLUTIONS FOR YOUR FAMILY.

THE CORE VALUES OF PWA

OUR FAMILY DELIVERING SOLUTIONS FOR YOUR FAMILY.

THE CORE VALUES OF PWA

OUR FAMILY DELIVERING SOLUTIONS FOR YOUR FAMILY.

THE CORE VALUES OF PWA

OUR FAMILY DELIVERING SOLUTIONS FOR YOUR FAMILY.

OUR FAMILY DELIVERING SOLUTIONS FOR YOUR FAMILY.

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YEAR-END TAX PLANNING & PREPARATION GUIDE

Tax Changes Affecting Your 2026 Return

Charitable Giving: Two Important Changes

Four Deductions Available for 2025 Through 2028

A Larger State and Local Tax (SALT) Deduction

Itemizing or the Standard Deduction?

Families with Children

Important Deadlines

Tax Planning Deadline

2027 Filing Deadlines