A new year has arrived—and for many, this means it's time to start thinking about the impending tax season. Even though returns may not be due until April, it's never too early to start planning ahead and strategizing ways to minimize your tax liability.
At the same time, the passing of the One Big Beautiful Bill Act (OBBBA) in 2025 means a lot of tax law changes will go into effect beginning this year.
Whether you're preparing a business tax return or an individual tax return, there are some practical tips worth keeping in mind that may help you reduce your tax liability this season.
One notable change in 2026 is a significant increase to the estate and gift tax exemption, reaching a historic high of $15 million per taxpayer. Although this increase may make it seem as though an estate plan is no longer needed under these laws, the reality is that you should still have a written estate plan if the value of your estate exceeds the new tax threshold.
Because so many tax laws are changing or being updated in 2026, it is possible that your tax situation will change in several ways. As a result, one decision you make to lower your tax liability could affect other aspects of your taxes. Because of this, it's important to consider several different scenarios when it comes to your tax planning—or to meet with an advisor who can use modeling software to find the best possible outcome for your tax return this year.
If you're thinking about selling stock in 2026, you should be aware that stockholders of qualifying C corps may be eligible for enhanced qualified small business stock (QSBS) exclusions, provided that the stock was issued after July 4, 2025. Specifically, the exclusion is now limited to the greater amount of $15 million or 10 times the stock's basis. This expanded benefit could make 2026 the year to sell off stock you've been holding onto and enjoy the tax benefits.
As new floor and ceiling limits are being introduced in 2026, taxpayers may want to consider accelerating multiple years' worth of charitable donations into their 2025 returns. In doing so, they can avoid the newly imposed 1% floor for individual charitable contributions.
While it's true that OBBBA did phase out many energy credits and tax benefits beginning in 2026, the reality is that solar and wind property projects may still qualify for some lucrative credits—provided that construction begins by July 4, 2026 or will be completed by December 31, 2027.
With changes to the taxation of overtime and tipped wages, individuals may be able to claim a deduction of up to $25,000, thus significantly reducing their tax liability. For business owners, however, this may create additional reporting challenges—as businesses are not required to report tipped and overtime wages differently. As your business heads into 2026, this is an important requirement to keep in mind if you want to avoid potential penalties.
Tariffs have impacted many businesses in the United States, especially when it comes to obtaining materials and supplies from foreign countries (such as China). If your business has been affected by tariffs, there are strategies to mitigate the effects, such as altering procurement strategies and completing comprehensive sourcing studies.
8. Don't Overlook State Income Tax
One important thing to remember is that although OBBBA was implemented only at the federal level, there's still a good chance that states will vote to decide how and when they will adopt and conform to its stipulations. While many states have yet to make a decision, taxpayers should be aware of potential changes to their own income tax liability if elements of OBBBA are passed in their respective states.
If your business obtained or built a nonresidential real estate property that was used for manufacturing, production or refining in 2025, it may be eligible for an immediate deduction. This type of deduction could be extremely helpful for businesses looking to minimize their tax liabilities heading into 2026.
There are still some uncertainties regarding 2026 tax changes that the Department of Treasury will likely address and provide additional guidance on in the coming months. To stay on top of this information as it comes out, we recommend keeping an eye on the Department of Treasury website for an updated 2025-2026 Priority Guidance Plan and additional information.
If you have any questions or would like additional information, please contact our tax services team.