November 2026 Tax Updates and Year End Planning

November is a good time to review your tax picture while there is still time to act before December 31. For Oregon households and business owners, that means looking at both federal changes and state rules. This month, we highlight charitable giving, deductions for eligible workers and seniors, and Oregon changes that could affect your 2026 return.

Review your withholding and estimated payments

Have your earnings, business profits, investment income, or family circumstances changed this year? Compare your expected 2026 tax with the amounts already withheld or paid. Updating withholding before your final paychecks may help address a shortfall. Estimated tax penalties depend on payment timing as well as the total paid, so a late payment may not resolve an earlier underpayment.

Your next step: Gather recent pay statements, estimated payment confirmations, and a current business profit and loss report for a year-end projection. The IRS withholding and estimated tax guide explains the rules.

Plan charitable giving under the 2026 rules

Beginning with tax year 2026, eligible taxpayers who take the standard deduction may also deduct qualifying cash contributions up to $1,000, or $2,000 for married couples filing jointly. Contributions must go to eligible organizations; gifts to individuals do not qualify.

For taxpayers who itemize, a new federal floor generally limits the charitable deduction to contributions exceeding 0.5% of adjusted gross income, subject to other applicable limits.

Your next step: Review your giving plan before year-end and retain bank records and required charity acknowledgments. Confirm an organization's eligibility before donating. See the IRS donation recordkeeping guidance and 2026 deduction changes.

Check deductions for seniors and eligible workers

For 2026, eligible individuals age 65 or older may qualify for an additional federal deduction of up to $6,000 each. The deduction begins phasing out above modified adjusted gross income of $75,000, or $150,000 for joint filers. Married taxpayers must file jointly to claim it.

Eligible workers may also qualify for federal deductions for qualified tips or overtime. The overtime deduction covers the qualifying premium above regular pay, rather than all overtime wages. Income limits, reporting rules, and other eligibility requirements apply.

Your next step: Keep earnings records and ask which deductions apply to your situation. Review the IRS overview of individual and worker deductions.

Account for Oregon differences before business purchases

Oregon does not follow every federal tax provision. Under enacted Senate Bill 1507, Oregon disallows federal bonus depreciation for tax years 2026 and later and disconnects from the federal personal vehicle loan interest deduction. A federal deduction therefore may not produce the same Oregon tax benefit.

Your next step: Before committing to equipment or vehicle purchases, request a federal and Oregon comparison. Base spending on business needs and cash flow as well as tax savings. See the Oregon Department of Revenue legislative summary.

Dates to keep on your calendar

• December 31, 2026: Calendar tax year ends. Review planned 2026 charitable gifts and other transactions whose tax treatment depends on completion before year-end.
• January 15, 2027: General deadline for the fourth 2026 federal individual estimated tax installment. Special rules and exceptions may apply. See IRS Publication 505.

Schedule your year end review

Contact Umpqua Valley Financial to discuss your 2026 tax projection and the records we will need. A conversation now can help you choose practical next steps before the year closes.