The same clients who rely on you for financial and retirement recommendations want you to understand their tax situation, too. Granted, unless you are trained and qualified to prepare returns, you should stay away from giving actual tax advice and instead team up with a licensed CPA or tax professional. Nevertheless, staying informed is critical so that you are able to provide financial recommendations that make sense in light of current tax laws.
Here are a few things you should be aware of for 2026:
1) The Senior Deduction
Originally touted as a “Social Security tax cut,” the OBBBA tax bill established a temporary income tax deduction for people age 65 or older which will end for the 2029 tax year.
For tax years 2025 through 2028, an additional $6,000 can be deducted per eligible filer ($12,000 per couple)—provided their modified adjusted gross income does not exceed $75,000 for single filers, or $150,000 for those married filing jointly, when phase outs begin. The senior deduction phases out completely for single filers with incomes over $175,000 or $250,000 for couples.
This temporary senior deduction is available to clients whether or not they itemize deductions, and it’s on top of the normal standard deduction (if your client takes it), as well as the additional standard deduction already in place for taxpayers 65 and older. (For the 2026 tax year, those additional standard deductions for single filers or heads of household are $2,050 for those over age 65 or blind, or $4,100 if over age 65 and blind. For married people, whether filing jointly or separately, $1,650 can be deducted per person if age 65 or blind; $3,300 per person if over age 65 and blind.)
2) Permanent Qualified Business Income Deduction
The qualified business income (QBI) deduction is another tax break you should know about, and it’s permanent under the OBBBA, allowing eligible clients to deduct up to 20% of their qualifying business income on their return. This deduction is available whether your clients itemize or take the standard deduction.
For clients who own qualifying small businesses, this deduction can be significant. Many pass-through entities may qualify for the QBI deduction, including sole proprietorships, limited liability companies (LLCs), S corporations, and partnerships. Additionally, some trusts may also qualify.
3) Estate and Gift Tax Exclusions
Per the OBBBA, in 2026, the estate and/or lifetime gift exemption amount will be $15,000,000 per person or $30,000,000 for a married couple, with the amount indexing annually for inflation going forward. The annual gift tax exclusion amount is $19,000 or $38,000 per married couple in 2026. Annual gifts can be split, allowing a married couple to give their full $38,000 to one person. Additionally, cash gifts can be given to as many individuals as your client wants to in a calendar year up to the limit without having to file a gift tax return (Form 709).
4) Remember RMDs
Helping your clients sort through and calculate their required minimum distributions every year prior to the December 31 deadline is incredibly important to becoming indispensable to your retirement clients. Mistakes are still happening with RMDs every year, and unbelievably, some clients still don’t even know they are required and neglect to take them altogether. Financial institutions are not required to inform account holders that RMDs are due, so it’s incumbent upon you to help clients proactively. Read about some shocking mistakes here.
For financial advisor use only. This information is provided for informational purposes only, and is believed to be true based on research. It should not be used or relied on for either tax or financial advice.
Sources:
https://www.thinkadvisor.com/2026/02/03/dont-let-clients-miss-these-7-tax-benefits-in-2026/
https://www.thinkadvisor.com/2025/09/23/the-worst-rmd-mistakes-clients-made-advisors-advice/
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