Episode 210: Navigating Tax Changes for 2026

Jan 6, 2026

Discover the upcoming tax changes set for 2026, including a return to standard ACA subsidies and higher estate tax exemptions. Learn how adjusted standard deductions will influence itemization and delve into inflation-related tax adjustments. Explore the implications of the alternative minimum tax for high-income earners. Plus, get the scoop on new Trump accounts for minors debuting in July 2026, and enjoy some light banter about New Year’s resolutions, making it both informative and entertaining!

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ANECDOTE

Monopoly Board Game Kick Over New Year

Wade played Monopoly with his kids over New Year's and rekindled interest in the game's strategy. He even read books on Monopoly and considered simulating games by computer.

INSIGHT

SALT Cap Up; Mortgage Insurance Deductible

The SALT deduction cap rose from $10,000 to $40,000 (indexed annually) and phase-outs now begin at $505,000. Mortgage insurance premiums became deductible again, with phase-outs near $100,000 and relevance for reverse mortgages.

INSIGHT

Gambling Losses Now Offset Only 90%

Gambling-loss offsets are limited to 90% against gains, potentially creating taxable 'phantom' income after netting. That change reduces the prior ability to fully offset realized gambling gains with losses.

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In this episode of Retire with Style, Alex and Wade break down the key tax changes coming in 2026, including the return of standard ACA subsidies, the extension of current tax rates, and updates to standard deductions. They cover inflation-related adjustments, itemized deductions, charitable giving rules, estate tax exemptions, and what the alternative minimum tax means for retirees. The conversation also explores the new Trump accounts launching in July 2026 and wraps up with a lighthearted discussion on New Year’s resolutions. Listen now to learn more!

Takeaways

The ACA subsidies are reverting to pre-2021 levels in 2026.
Tax rates remain unchanged from previous years, providing stability.
Standard deductions continue to be higher, affecting itemization rates.
Inflation adjustments will impact the thresholds for tax brackets.
Charitable contributions now have a deduction floor based on AGI.
Estate tax exemptions are increasing significantly for 2026.
The alternative minimum tax may affect more high-income earners.
529 plans have expanded eligible expenses for education.
Trump accounts will allow contributions for minors starting in July 2026.
New Year's resolutions can be a time for reflection and planning.

Chapters

00:00 Welcome to 2026: New Beginnings
02:13 Affordable Care Act Changes
07:25 Tax Rates and Standard Deductions
09:16 Inflation Adjustments and Tax Planning
11:34 Itemized Deductions and Charitable Contributions
20:32 Estate Tax Exemptions and Business Income
24:44 Alternative Minimum Tax and 529 Plans
28:19 Trump Accounts and Future Planning
29:42 New Year Reflections and Resolutions

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This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips