(Part 2 of 2)

Mistake #5: The Healthcare Marketplace Income Reporting Disaster

This mistake is expensive and completely avoidable.

If you receive marketplace health insurance and your income changes significantly during the year, you must update your projected income immediately. Failing to do this creates a tax time bomb.

Here’s what happens: You receive excess premium tax credits throughout the year based on your initial income projection. When you file your tax return, you have to pay back every dollar of excess credits received.

The 2026 changes make this worse:

• New rules eliminate premium tax credit eligibility for special enrollment periods based solely on income changes
• Different standard deduction amounts affect household income calculations
• Modified adjusted gross income thresholds shift due to personal exemption elimination

The solution: Update your marketplace account within 30 days of any significant income change. Don’t wait for annual enrollment periods.

Mistake #6: Completely Misunderstanding the SALT and Standard Deduction Changes

Most taxpayers don’t realize how dramatically the itemize-vs-standard-deduction decision changes in 2026.

The numbers that matter:

• Standard deduction: $32,200 (married filing jointly), $16,100 (single), $24,150 (head of household)
• SALT deduction cap increases to $40,000 (adjusted annually through 2029)

The strategic opportunity most people miss: Bunching deductions into alternating years.

Example: If you typically itemize with $35,000 in deductions, consider accelerating property tax payments and charitable donations into 2025, creating $50,000+ in itemized deductions. Then take the standard deduction in 2026.

The fix requires immediate action: Review your typical deduction amounts and decide whether to bunch payments into 2025 or spread them across years. This decision must be made by December 31, 2025.

Mistake #7: Ignoring the Personal Exemption Elimination Impact

Starting in 2026, personal and dependent exemptions are permanently eliminated: but the Child Tax Credit increases to compensate.

Most families don’t understand how this affects their planning:

• Large families lose more in exemptions than they gain in standard deduction increases
• Child Tax Credit phaseout thresholds change
• Dependent planning strategies require complete recalculation

The planning gap: Families assume these changes “wash out” without running the actual numbers for their specific situation.

The solution: Calculate your 2026 tax liability using the new rules now. Model different scenarios based on your family size, income level, and dependent ages. The results often surprise people.

Your Next Steps Before It’s Too Late

The window for 2026 tax planning is closing fast. These changes aren’t proposals or possibilities: they’re happening whether you’re prepared or not.

Here’s your immediate action checklist:

1. Schedule a comprehensive tax projection for 2026 using the new rules and your expected income

2. Update all W-4 forms if you’ve had any employment changes this year

3. Review quarterly estimated tax payments and adjust remaining 2025 payments

4. Decide on retirement contributions and charitable giving strategies before December 31st

5. Update marketplace health insurance income projections immediately

6. Calculate whether to bunch deductions into 2025 or take standard deductions in 2026

7. Model the personal exemption elimination impact on your specific family situation

The bottom line: Tax planning isn’t about April compliance: it’s about year-round strategic positioning that maximizes your financial outcomes.

Don’t let these seven mistakes cost you thousands of dollars in 2026 and beyond. The changes are coming whether you’re ready or not.

Ready to get ahead of the 2026 tax changes? Contact UniFirst Financial & Tax Consultants for a comprehensive review of how these changes affect your specific situation. We specialize in helping families and business owners navigate complex tax transitions with confidence.