10 Tax-Saving Ideas for 2026

There have been big changes to income taxes recently. Here are ten ideas to discuss with your advisor that could reduce your income tax bill.

There have been big changes to income taxes recently. Here are ten ideas to discuss with your advisor that could reduce your income tax bill.

1. Deduct $1,000 of contributions even if you don?t itemize.

A new rule lets non-itemizers deduct the first $1,000 of charitable contributions made by cash, check, or credit card. Normal rules about receipts still apply, but keep track of your gifts and save taxes.

2. Give appreciated assets

Even if you don't itemize, donating appreciated assets (such as stocks or real estate) owned for at least a year avoids capital gains tax and keeps reported income low. That protects other new tax benefits like the senior bonus deduction and the higher state and local tax deduction. If you itemize, you also get the full charitable deduction.

• Tip: Don't sell first - give before the sale. The nonprofit pays no tax when selling. If your nonprofit can't accept the asset, use a donor-advised fund.

You can give stock to MVNU easily with our new tool: see our stock gift instructions and a link to the tool on our Smart Giving page .

Why Wade '96 and Monica '97 Gray like to give stock .

3. Try the charitable swap; give appreciated investments without changing your portfolio

Donating appreciated assets has three benefits:

• Deduction equal to a cash gift.
• Avoids capital gains tax.
• Keeps reported income lower.

With a "charitable swap," give appreciated stock and then use cash to repurchase the same stock. Your portfolio stays the same, but the capital gain disappears. (No waiting period applies because this is not a "wash sale.")

4. Give from your IRA

If you're age 70½ or older, you can give directly from your IRA. These gifts don't count as income, so you never pay taxes on them. This is often better than a deduction because lower reported income (AGI/MAGI) qualifies you for other tax benefits.

• Example: A senior with $75,000 income qualifies for the new $6,000 bonus deduction. With $100,000 income, the bonus shrinks to $4,500 and phases out entirely at $175,000.
• Lower income also helps protect state and local tax deductions, AMT exemptions, Social Security tax reductions, medical deductions, and can keep Medicare Part B premiums lower.
• How to do it? Your IRA custodian has a form for this type of gift, called an IRA Qualified Charitable Distribution. Check their website or see our helpful finder tool. Or call us!

See how IRA gifts work for an actual MVNU donor.

5. Younger than you think! Make IRA gifts at age 70½

RMDs begin at age 73, but you can make direct IRA gifts starting at 70½. These gifts are excluded from income and reduce future RMDs. In 2026, anyone 70½+ can give up to $111,000 this way. Couples can give $222,000.

• Note: to give directly from a 401(k) or 403(b), you must first roll it into an IRA. Do this before age 73 to avoid taxes on that year's RMD.

6. Consider bunching your deductions

"Bunching" means giving more in one year and less in others. In your giving year, you itemize deductions; in off years you take the standard deduction. (You can bunch gifts by paying a multi-year pledge in advance or contributing assets or cash to your donor-advised fund.)

Example: Give $10,000 each year for four years--no benefit if the standard deduction is $16,100. Instead, bunch all $40,000 in the first year--deduct $40,000 that year, then take the standard deduction later, increasing total deductions by $23,900.

7. Make an IRA gift and get income for life

If you don't need all your RMD, you can make a one-time IRA gift to fund a charitable gift annuity (CGA). For example, at age 75, a CGA typically pays 7% for life. This transfer counts against RMD income but is capped at $55,000 per person.

CGAs are also available outside of IRAs, with no size limits and an immediate deduction. Calculate your personal CGA rates here

8. Make a smarter estate gift: the IRA/401(k)/403(b) beneficiary

Many people include a church or charity in their will. A tax-smart option is to name the nonprofit as beneficiary of an IRA, 401(k), or 403(b).

• Why? Heirs pay income tax on these accounts, but charities don't. If you plan to leave a charitable gift, give from retirement accounts first.

Ron '70 and Margaret '70 Billow's estate gift testimony.

9. Deduct today for a gift tomorrow! Take an immediate deduction for inheritance rights

You can donate the inheritance rights to a farm or a home with a special life estate deed. Unlike a will, this is irrevocable and creates an immediate deduction.

• Example: In August 2025, a 65-year-old donor deeds $100,000 of farmland inheritance rights to a nonprofit. The immediate deduction is $44,526. The donor retains the right to use the property for life. (A Charitable Remainder Trust (CRT) works similarly for other assets.)

10. Time for a Roth conversion! (And combine it with charitable planning)

A Roth conversion moves money from a traditional IRA into a Roth IRA. All future distributions are tax-free, but the conversion counts as income this year. Pairing a conversion with charitable strategies (gift bunching, donor-advised funds, CGAs, CRTs, life estate deeds, or paying a multi-year pledge early) can offset that income with deductions.

Planning Point: Let your faith and values drive your charitable gift decisions. Don?t do things just for the tax benefits. But, if you are going to give, it is perfectly legal and smart to take advantage of the rules to minimize the taxes you pay.

Remember: Discuss these ideas with your tax advisor. They may not apply in your situation.

We would be glad to talk with you about ways to reduce your taxes and achieve personal goals as you support MVNU, your church, and other charitable organizations.

With thanks to Russell James, J.D., Ph.D., CFP®, Professor of Charitable Financial Planning at Texas Tech University. Used with permission.

Mount Vernon Nazarene University does not provide legal, tax, or financial advice to donors or their advisors. The statements above apply to a general discussion of issues and do not constitute legal, tax, or financial advice or opinion. Please seek independent counsel to act upon any ideas presented in this message.