January is the best time to set your tax strategy for the year. We cover the 2026 tax brackets, new contribution limits, and the five financial habits that separate our most successful clients from the rest.
2026 Tax Brackets and What They Mean for You
The IRS adjusts tax brackets annually for inflation. For 2026, the standard deduction is $15,000 for single filers and $30,000 for married filing jointly. The 22% bracket applies to income between $48,475 and $103,350 for single filers. Understanding which bracket you're in helps you make smarter decisions about timing income and deductions throughout the year. If you're close to a bracket boundary, strategic moves in December can make a real difference.
2026 Contribution Limits: Max Them Out
401(k) contribution limit: $23,500 (plus $7,500 catch-up if 50 or older). IRA limit: $7,000 (plus $1,000 catch-up). HSA limits: $4,300 single / $8,550 family. SEP-IRA: up to 25% of compensation, max $70,000. If you're not maxing out your retirement accounts, you're leaving tax-free growth on the table. Set up automatic contributions in January so you don't have to think about it the rest of the year.
Five Financial Habits of Our Most Successful Clients
After years of working with business owners and individuals across Oklahoma and Texas, we've noticed clear patterns. Our most financially successful clients: (1) reconcile their books every month without exception, (2) make estimated tax payments on time every quarter, (3) keep business and personal finances completely separate, (4) meet with their accountant at least twice a year — not just at tax time, and (5) maintain at least three months of operating expenses in a dedicated business savings account.
From the Firm
Happy New Year from the entire McCloud & Associates team. We're grateful for your trust and look forward to helping you build wealth and reduce your tax burden in 2026. Our office is now scheduling tax appointments for the upcoming season. Early filers get the best appointment times — call us today at (918) 205-1350.