What do you need to know about tax planning in 2026? On this episode of Money Unscripted, learn about the new SALT cap increase, why you might want to consider itemizing over taking the standard deduction, a boosted child tax credit, and other opportunities to save on your taxes. Join host Ally Donnelly and Ajay Sarkaria, Fidelity Regional Vice President of Private Wealth Management, as they walk through the tax strategies that could help you keep more of what you earn. Watch now. 00:00 Welcome to Money Uns ...

Core Insights - The SALT deduction cap has increased from $10,000 to $40,000 for tax years 2025 through 2029, providing new relief for taxpayers [1] - Charitable contributions are highlighted as an effective method to reduce tax liability, with new limitations on deductions set to take effect in 2026 [2][3] - Financial advisors emphasize the importance of year-end tax management strategies, particularly in light of new tax laws introduced by the One Big Beautiful Bill Act [5][6] Tax Deductions and Contributions - Charitable deductions will be capped at a 35% rate starting next year, prompting many clients to accelerate their charitable contributions into 2025 [3] - The full $40,000 SALT deduction begins phasing out at modified adjusted gross incomes of $500,000 for joint filers, reverting to $10,000 at $600,000 [6] - New tax deductions include up to $12,500 for qualified overtime pay and up to $10,000 for interest on auto loans for qualified vehicles purchased in 2025 [7] Tax-Loss Harvesting and Investment Strategies - Tax-loss harvesting is recommended as a strategy to offset ordinary income, not just capital gains, and should be revisited at year-end [8] - Investors are advised to consider their taxable brokerage accounts to manage taxes on interest, dividends, and capital gains effectively [8] - The crypto market presents unique tax management opportunities, allowing for the capture of losses without the wash-sale rule [10] Roth Conversions - Advisors suggest considering Roth conversions as a strategy to lock in future tax-free growth, especially in light of potential tax-bracket shifts [10][11] - Roth conversions are seen as beneficial for individuals in their 70s to prepay taxes at lower rates and manage required minimum distributions [11]

Core Points - The new federal law increases the SALT deduction limit to $40,000 per household from the previous $10,000, reverting back to the lower limit in 2030 [1] - Single filers and married couples filing jointly can claim the full $40,000 deduction, while married couples filing separately have a maximum deduction of $20,000 [2] - A modified gross income below $500,000 is required to claim the SALT deduction, with a phase-down starting at $500,000 compared to the previous $600,000 cap [2] Tax Strategies - Itemizing deductions is recommended, especially for those in high-tax states, with categories including medical expenses, home mortgage interest, charitable contributions, and disaster-related losses [4] - Contributions to retirement accounts can help reduce modified adjusted gross income, keeping taxpayers below the phaseout threshold [5] - Timing income strategically can maximize SALT deductions, such as deferring large deposits or prepaying property taxes and charitable contributions [7]