Tax planning shouldn't start when it's time to file your tax return. It should start before the year is over.

With several significant federal tax law changes taking effect in 2026, this year presents important planning opportunities for individuals, families, business owners, and higher-income taxpayers.

Waiting until tax season to find out what you owe can leave you with limited options. By reviewing your income, deductions, investments, business activity, and estimated tax payments before December 31, you may be able to make meaningful adjustments to your tax situation.

At AJB & Associates, LLC, we approach tax planning by looking at the numbers first, identifying potential opportunities, and evaluating how different decisions could affect your overall tax liability.

Why 2026 Tax Planning Matters

The 2026 tax year includes several changes that may affect how much you owe. Depending on your circumstances, some of these changes could create additional deductions or planning opportunities.

Some of the areas worth reviewing include:

• New tax deductions: Potential deductions for qualifying overtime, tips, vehicle loan interest, and individuals age 65 and older.
• Retirement contributions: Evaluate 401(k), IRA, SEP IRA, SIMPLE IRA, and other retirement plan contributions.
• Business deductions: Review Section 179 expensing, 100% bonus depreciation, and qualified business income deductions.
• Capital gains: Evaluate stock sales, investment income, capital loss harvesting, and the timing of transactions.
• State and local taxes: Review the increased federal SALT deduction limit and applicable limitations.
• Estimated tax payments: Determine whether withholding and quarterly payments are sufficient to cover your projected liability.

Not every provision applies to every taxpayer. Income limitations, eligibility requirements, and individual circumstances matter.

Know What You Currently Owe: Tax Projections

One of the most valuable parts of tax planning is knowing where you currently stand.

Rather than relying on last year's tax return or guessing what you might owe, we use tax projection worksheets to evaluate your current financial information and estimate your tax liability for the year.

Our tax projection process can include:

• Current-year wages and other income.
• Business, rental, and investment income.
• Capital gains and losses.
• Available deductions and credits.
• Federal and state income tax calculations.
• Federal and state withholding and estimated payments.
• Estimated balance due or projected refund.

The goal is to give you a clearer picture of your tax situation before the year ends.

An Example of Our Tax Planning Process

Below is an example of the type of tax projection worksheet used during our planning engagements.

TAX PROJECTION SAMPLE

Our worksheets can compare multiple scenarios side by side, including:

• Current-year projected tax liability.
• The potential impact of purchasing qualifying business equipment.
• The tax consequences of an additional investment or asset sale.
• Changes in income, deductions, or other planning assumptions.

This allows us to evaluate the potential tax impact of different decisions rather than simply discussing deductions in general terms.

For example, a business owner considering a major equipment purchase may want to understand how the purchase could affect taxable income, federal taxes, state taxes, and overall cash flow.

Having those numbers in front of you makes it easier to make informed decisions.

Tax projections are estimates based on available information and assumptions. Actual results may differ.

Tax Planning for Individuals and Families

Tax planning isn't limited to business owners. Individuals and families can also benefit from reviewing their financial situation before year-end.

Depending on your circumstances, we may evaluate:

• Retirement contributions and Roth conversion opportunities.
• Capital gains and investment transactions.
• Charitable contributions.
• Withholding adjustments.
• New deductions available under 2026 tax law.
• Retirement distributions and required minimum distributions.
• Potential changes to filing status or household income.

A tax projection can help identify potential problems early enough to evaluate available options.

Tax Planning for Business Owners

Business owners often have additional planning opportunities, but they also have more moving pieces to consider.

A review of your business and personal tax situation may include:

• Entity structure and S corporation elections.
• Reasonable compensation and shareholder distributions.
• Section 179 and bonus depreciation.
• Qualified business income deductions.
• Business retirement plans.
• Equipment purchases and capital expenditures.
• Year-end income and expense timing.
• Bookkeeping accuracy and estimated tax obligations.

The objective is not simply to generate deductions. It is to evaluate the overall financial and tax consequences of business decisions.

Download Our 2026 Tax & Retirement Planning Guide

We've prepared a 2026 Tax & Retirement Planning Guide covering important federal tax figures, new tax law provisions, retirement contribution limits, business deductions, and year-end planning considerations.

The guide is designed to help taxpayers understand the changes affecting 2026 and identify areas that may deserve additional attention.

[DOWNLOAD THE 2026 TAX & RETIREMENT PLANNING GUIDE]

Start Planning Before December 31

The biggest mistake taxpayers can make is waiting until their return is being prepared to start thinking about taxes.

By that point, many planning opportunities may have already passed.

Whether you're an individual with investment income, a business owner evaluating equipment purchases, or a high-income taxpayer looking to better manage your overall liability, a proactive review can make a difference.

AJB & Associates, LLC provides tax planning, tax projections, and advisory services for individuals and businesses.

Contact us to discuss your 2026 tax situation and determine whether a tax planning engagement makes sense for you.