There are 2 months left in 2026 to make moves to reduce taxes. Most apply to everyone. A few are age-specific because of Required Minimum Distributions (RMDs) from a Traditional IRA beginning in the year of a person’s 73rd birthday.

My tax-reduction plan, which I have been phasing in for 7 years, culminates in 2026 because I turn 73 this coming December. My husband turned 73 last year.

According to the OBBBA, in the first year of making RMDs, the distribution can be delayed until April of the following year. The RMDs can then be combined and the tax paid. The RMD may be used to make a tax-exempt Qualified Charitable Distribution (IRA QCD) to an annuity sponsored by a nonprofit which then makes taxable distributions for life. This can only be done once in an amount up to $55,000. After the first year of making RMDs the QCD is tax-exempt but not usable for an annuity.

Here are more tax-planning hints.
wsj.com - What you can do now to cut your taxes


What You Can Do Now to Cut Your 2026 Taxes
Planning has to start well before year-end to make the most of changes to charitable giving and itemized deductions

By Laura Saunders, The Wall Street Journal, Oct. 30, 2026

...
To avoid underpayment penalties, filers typically must pay 90% of tax due by year-end or soon after. The deadline is Dec. 31, 2026 for tax on income like wages and IRA payouts that’s subject to withholding. It’s Jan. 15, 2027 for tax paid through quarterly estimates...

Filers can also avoid penalties by paying 100% of their prior-year tax if income is $150,000 or less, and 110% if it is more. Note: If you use these safe harbors and pay quarterly, it’s important to make equal payments...

For 2026, the standard deduction is $32,200 for married joint filers and $16,100 for singles. Filers ages 65 and older each get an extra $1,650 or more. This is separate from the deduction of up to $6,000 for some seniors enacted in the 2025 tax changes.

Last year, many filers who had been taking the standard deduction returned to itemizing due to the expanded deduction for state and local taxes, or SALT. For 2026 the SALT deduction is up to $40,400 for joint filers and singles with income up to $505,000. Above that, it phases down to $10,000 for filers with income of about $606,000 or more...

The good news is that givers who don’t itemize can now deduct up to $2,000 (joint filers) or $1,000 (singles and others) for donations to charities. These gifts must be of cash, not property like used clothes, and they can’t be to donor-advised funds.

The bad news is that givers who itemize charitable donations now lose an amount of the deduction equal to 0.5% of their adjusted gross income. So if a couple has $300,000 of income, they can only deduct donations above $1,500...

A key number for tax planning is adjusted gross income, or AGI, found on Line 11a of Form 1040. Congress often uses it as the threshold for a host of phase-ins, phaseouts and other provisions to raise revenue or stanch revenue loss. More than a dozen provisions are tied to AGI thresholds.

These provisions include the deductions enacted in 2025 for SALT, overtime and tips, as well as taxes due on Social Security payments; extra Medicare premiums known as Irmaa; and the 3.8% net investment income tax, among others...

What helps lower AGI? Among other things, says Pon, are pretax contributions to 401(k)s, traditional IRAs, health savings accounts and flexible-spending accounts; deductible business expenses for owners; and realized capital losses...[end quote]

Watch out for IRMAA. The income related monthly adjustment amount (IRMAA) for Medicare brackets are triggered if AGI is even $1 above the bracket cutoff.

IRMAA is a surcharge added to your Medicare Parts B and D premiums, based on income. Learn more about IRMAA for 2026 and how it impacts your Medicare costs.

I ordered my tax prep software which will be available Nov. 1.

Wendy