5 Tax Changes for 2026 That Private Practice Owners Need to Know

Julie Herres
1 day ago
4 min read

Key rules that could impact your savings, your giving, and your peace of mind

Let’s talk tax changes. (Don’t run away just yet! I promise, it’s not all bad news.)

If you own a solo or group practice — or just want to keep more of what you earn — the tax landscape is shifting again in 2026. While “tax law changes” might sound like a headache, a little proactive planning can help you maximize the opportunities and sidestep surprises.

Below, we break down the five big updates most likely to affect your wallet, your savings strategy, and your charitable giving plans.

1. Higher Contribution Limits for Retirement & Health Savings

Every year, the IRS usually bumps up how much you can put into tax-advantaged accounts like 401(k)s, IRAs, and HSAs. In 2026, those limits are getting another lift. That’s good news for your future self and your future healthcare bills!

What to do: Take a few minutes to check your current contribution levels. Even a small increase — especially if automated — can add up over time. For solo and group practice owners, remember:

IRA & HSA contributions for 2025 can be made until April 15, 2026.
SEP IRA contributions (for business owners/self-employed) can be made through your tax-filing deadline, including extensions.

2. Catch-Up Contributions: New Rules for High Earners

If you’re 50+ and made more than $150,000 last year, catch-up contributions to your workplace retirement plan (think 401(k), 403(b), 457(b)) must now go into a Roth account. That means no up-front tax deduction, but those dollars can grow tax-free for retirement — and your heirs.

What to do: Don’t skip those catch-up contributions! Even though you won’t get a tax break now, the benefits down the road (hello, tax-free retirement income!) are worth it.

3. 529 Plan Perks for K-12 Education

Good news for parents and grandparents! The annual federal limit for 529 plan distributions for qualifying K-12 expenses will double in 2026 — from $10,000 to $20,000 per student. Plus, more expenses now qualify (think: curriculum, books, some tutoring/testing fees).

What to do: If you use a 529 plan for K-12 costs, you’ll have more flexibility — and potentially more tax-free growth. If you have extra funds in your 529, these expanded options make it easier to use up those dollars wisely. And remember:

You can gift up to $19,000 per person (or $38,000 for married couples) to a 529 in 2026 without using your lifetime exemption.
Some states also offer their own 529 plan perks!

4. New “Trump Accounts” for Kids (Yes, Really)

Starting July 2026, families can open a special “Trump account”— basically a starter IRA for kids under 18. These allow nondeductible contributions up to $5,000 (without needing earned income), and children born 2025–2028 get a one-time $1,000 federal contribution.

What to do: If you’ve got a child or grandchild born in 2025 or 2026, don’t miss the one-time $1,000 federal bonus! These accounts could be a great way to help your little one start building wealth for the future, especially if you’ve already handled your own retirement needs.

5. Charitable Giving: Deductions for Nonitemizers & New Rules for Itemizers

There’s a little more incentive for everyone to give to charity:

If you don’t itemize (most people don’t), you can deduct up to $1,000 in cash donations ($2,000 for joint filers).
If you do itemize, only contributions above 0.5% of your adjusted gross income (AGI) are deductible.

What to do: Standard deduction takers: Cash donations up to $1,000 ($2,000 for joint returns) can now lower your taxes. Itemizers: Consider “bunching” donations or using donor-advised funds to maximize your deduction, or, if you’re 70½+, donate directly from your IRA (a qualified charitable distribution or QCD).

A Few More Things to Know

Several favorable tax law provisions — like lower individual rates, higher standard deduction, and the qualified business income deduction — are being indefinitely extended under the current law. But as always, things can change, so stay connected with your tax professional.

Don’t Go It Alone

That’s a lot of changes, but you don’t have to sort it all out by yourself. Take things one step at a time, stay proactive about your planning, and lean on the resources and professionals you trust.

If you’re wondering how specialized accounting can impact your unique situation, schedule a consultation with us to learn about our services for therapists, counselors, and private practice owners!

This article is designed to provide information only and should not be considered legal or tax advice. Because of the complexity of the law and the variables in your own personal tax situation, you can’t rely on our advice specifically related to your unique circumstances. In order to get the best tax savings and legal advice available to you, you should consult with your own accountant, attorney, or advisor regarding your particular facts and circumstances.

GreenOak Accounting specializes in working with private practice owners across the United States. For more information on our services, visit our website.