Accountio / Templates / Tax law letters / Year-end tax planning letter

Year-end tax planning letter template for 2026

Tell clients which steps can still lower their 2026 tax bill before December 31, including the new rules from the One Big Beautiful Bill Act, and invite them to book a meeting. This year-end tax planning letter is one Word letter in plain English, with sections you keep or delete for each client.

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What the letter looks like

Year-end tax planning letter template
What the letter coversSection in the letter
Withholding and estimated tax
✓
Before December 31, 2026Whether an extra payment or more withholding from final paychecks would avoid a penalty
Charitable gifts
✓
Before December 31, 2026What changes for clients who itemize and for those who don't, and grouping two years of gifts
State and local taxes
✓
Before December 31, 2026The 2026 cap and timing income for clients near the income limit
Retirement savings
✓
Before December 31, 2026401(k), IRA and HSA contributions, with an optional line on Marketplace plans and HSAs
Investments and family gifts
✓
Before December 31, 2026Selling losses to offset gains, and gifts within the $19,000 annual exclusion
Tips and overtime
✓
If you earn tips or overtimeKeeping pay stubs and checking employer records before the Form W-2 is issued
Car loan interest
✓
If you bought a carThe deduction for a new, US-assembled vehicle bought with a loan, and the records to keep
Business owners
✓
If you own a businessBuying equipment before year end, the qualified business income deduction, and collecting Forms W-9 for 1099s
Families
✓
If you have childrenThe child tax credit, Trump accounts and the dependent care account limit
Your own recommendation
✓
Optional paragraphA line for advice based on what you know of the client
A call to book a meeting
✓
Closing paragraphContact name, phone and email, and a date to reply by

When to send it

Send it in the autumn, with enough time before December 31 for clients to act and book a meeting. The pack also has three other client letters on the One Big Beautiful Bill Act: one for individuals, one for business owners and a mid-year check-in.

  • October or November, to every individual and business owner client
  • Before your planning meeting season, so clients come with questions
  • To clients whose income changed this year, such as a new business, a sale or retirement
  • To clients with tips, overtime or a new car loan who may not know about the new deductions

How to use the year end tax planning letter

  1. Set the reply date. Give clients a date to contact you that leaves time to act before December 31.
  2. Keep the sections that apply. Delete the business, children, tips or car sections for clients they don't fit.
  3. Choose the optional lines. Keep the top-bracket line, the HSA line or your own recommendation only where they apply.
  4. Add your contact details. Name the person clients should call to book a planning meeting.
  5. Send it on your letterhead. Merge it from your client list, or send it as a PDF by email.

Questions

What is a year-end tax planning letter?

A letter an accountant or tax preparer sends to clients before December 31, listing the steps that could still lower that year's tax bill and inviting them to discuss them.

What should be in a 2026 year-end tax planning letter?

Withholding and estimated tax, charitable gifts, state and local taxes, retirement contributions, investment losses and family gifts, plus sections for business owners, families and anyone affected by the new deductions for tips, overtime and car loan interest.

How much can you give in 2026 without gift tax?

Up to $19,000 to each person in 2026 without using any of the lifetime exemption. The basic exclusion amount for estate and gift tax is $15 million a person for 2026.

Which years do the tips and overtime deductions cover?

The deductions for qualified tips and qualified overtime apply for 2025 to 2028. The tips deduction is up to $25,000 a year, and the overtime deduction up to $12,500, or $25,000 on a joint return, with both reduced at higher incomes.

Who can deduct car loan interest?

From 2025 to 2028, people who buy a new vehicle with final assembly in the United States, using a loan, can deduct up to $10,000 of interest a year. Lease payments don't qualify, and the deduction is reduced above $100,000 of income, or $200,000 on a joint return.

Also in the tax law change client letters

Letter to individualsLetter to business ownersMid-year check-in letter

See the whole pack →

Who it's for

US tax practices that want one clear planning letter to send every client each autumn.

Last checked

Checked against IRS guidance on the 2026 tax year and the One Big Beautiful Bill Act in November 2026.