April 24, 2026
By Margaret Allen
PRESENTED BY Crowne Point Tax & Wealth Counsel
THIS WEEK
Three 2026 Tax Law Shifts That Rewrote Your Refund and Planning Playbook
Three major tax provisions quietly reshaped the 2026 landscape, and most filers have not caught up. The expanded standard deduction now sits at $15,750 for single filers and $31,500 for joint filers, shrinking the pool of itemizers but freeing up bigger baseline write-offs. A new above-the-line deduction for tips and overtime income is already lifting paychecks in service and hourly sectors. And the temporary expansion of the Child Tax Credit pushed the refundable portion higher for the 2025 filing season, with another bump scheduled for tax year 2026. Together, these changes mean the old rules of thumb — itemize aggressively, defer income, max every retirement bucket — need a fresh look this year.
Among the most meaningful shifts:
The $15,750 single / $31,500 joint standard deduction sharply raises the bar for itemizing in 2026.
A new above-the-line deduction for tips and overtime income is boosting take-home pay before the return is even filed.
The expanded Child Tax Credit pushes refundable amounts higher for 2025 filings, with another step up coming in tax year 2026.
These shifts are not just filing season trivia. They are a reminder that your 2026 tax strategy, paycheck setup, and year-end planning all deserve a fresh look before the window starts to close.
ALSO THIS WEEK
Five Legal Tax Savings Most 2026 Filers Leave on the Table
Tax savings are not always about sweeping changes or complicated structures. Sometimes the best opportunities come from understanding timing and using the code as it is already written. An AP piece provided by Morningstar highlights several provisions that can legally reduce taxes, including the 0% capital gains rate for eligible lower-income households, the Augusta Rule for short-term home rentals, low-income Roth conversion windows, and qualified charitable distributions for older taxpayers.
A few especially useful takeaways stand out:
Tax timing matters. In lower-income years, some investors may be able to realize long-term capital gains at a 0% federal rate.
Retirees in gap years may have an opportunity to convert traditional IRA assets to Roth accounts at a relatively low tax cost.
For taxpayers over age 70½, qualified charitable distributions can reduce taxable income while supporting charitable giving goals.
The common thread is that tax savings often come from timing, eligibility, and coordination rather than from last-minute scrambling. The people who benefit most are usually the ones planning before the opportunity closes.
QUICK HIT
Shopping in Europe This Summer? Do Not Leave Your VAT Refund Behind
If you are heading to Europe this travel season and plan to shop, there is a simple savings move worth remembering: many non-EU travelers can claim back VAT on eligible purchases before heading home. A recent Condé Nast Traveler guide breaks down the basics, including bringing your physical passport when shopping, asking for the VAT refund form at the store, keeping your receipts, and leaving enough time at the airport for customs validation and refund processing. It is a practical reminder that some of the easiest travel savings come from knowing the rules before you buy. Read more here.
THE BOTTOM LINE
Three Tax Moves Worth Making Before Summer Gets Away From You
This stretch of the year is one of the best times to make tax decisions while there is still room for them to matter. Three moves stand out right now: adjust your 2026 paycheck withholding if your refund was far too large or you ended up owing, map out your Q2 estimated tax payment due June 16 if you are self-employed or have significant side income, and lock in 2026 IRA or HSA contributions early so the tax benefit has more time to work in your favor.
There is also a practical reason not to push tax planning to the end of the year. The IRS has already updated 2026 withholding tables to reflect the new brackets and expanded deductions, which means the paycheck you see now may not line up with the refund or balance due you expect next spring. Checking your withholding while there is still time to make adjustments is much easier than finding out later that you were off course for months.
The main takeaway is simple: do not treat tax strategy like a year-end task. The people in the best position next year will usually be the ones who use this part of the calendar to make small, deliberate moves on withholding, estimated payments, contribution planning, and even travel-related savings opportunities before life gets busier.
That’s the week. See you next issue.
Margaret Allen
Editor-in-Chief
Smrtt Money
P.S. Tax season doesn't wait — and neither do the rules. The sooner you have a strategy in place, the more you keep. Book your free 30-minute session here.