Setting Financial Resolutions: A Tax-Savvy Guide for 2026

As the new year approaches, many of us will set resolutions to improve our finances. We aim to save more, spend less, and invest wisely.

But one of the most powerful tools for building wealth is often overlooked in New Year’s resolutions: strategic tax planning. By making tax-savvy financial resolutions, you can ensure that more of your hard-earned money stays in your pocket.

Here’s a guide for Californians to set impactful financial goals for 2026 with a focus on tax efficiency.

Resolution 1: Maximize Your Retirement Contributions

This is perhaps the single most effective way to save for the future while reducing your current tax bill. Contributions to traditional 401(k)s and IRAs are tax-deductible, meaning they lower your taxable income for the year. For 2026, make it a goal to contribute the maximum amount allowed by the IRS.

Tax-Savvy Tip: If your employer offers a 401(k) match, contribute at least enough to get the full match. It’s free money. If you are self-employed, explore options like a SEP IRA or Solo 401(k), which allow for even larger tax-deductible contributions.

Resolution 2: Embrace Tax-Loss Harvesting

If you have a taxable investment account (i.e., not a retirement account), tax-loss harvesting is a powerful strategy. It involves selling investments that are at a loss to offset the taxes on your capital gains. You can deduct up to $3,000 in net capital losses against your ordinary income each year, and carry forward any additional losses to future years.

Tax-Savvy Tip: Don’t just think about this at the end of the year. Monitor your portfolio throughout 2026 for opportunities to harvest losses. Be mindful of the “wash-sale rule,” which prevents you from claiming a loss if you buy a “substantially identical” investment within 30 days before or after the sale.

Resolution 3: Get Organized with Your Records

A lack of organization can cost you dearly at tax time. You might miss out on valuable deductions simply because you can’t find the receipts. This year, resolve to keep meticulous records. Use a spreadsheet or an app to track:

• Charitable contributions (both cash and non-cash).
• Business-related expenses if you’re self-employed.
• Medical expenses (you can deduct expenses that exceed 7.5% of your adjusted gross income).
• All your cryptocurrency transactions, including the date, cost basis, and sale price.

Tax-Savvy Tip: Create dedicated digital folders for each category of tax document. When you receive a relevant email or receipt, save it to the folder immediately. This will make tax preparation in 2027 a breeze.

Resolution 4: Review Your Tax Withholding

Did you get a massive tax refund last year? While it might feel like a bonus, it really means you gave the government an interest-free loan.

On the other hand, did you owe a lot of money and face underpayment penalties? That’s not ideal either. The goal is to get as close to zero as possible.

Tax-Savvy Tip: Use the IRS’s Tax Withholding Estimator tool online to check if your current withholding is appropriate for your financial situation. If you’ve had a major life event—like getting married, having a child, or starting a side gig—it’s especially important to adjust your W-4 form with your employer.

Resolution 5: Consult with a Professional

The best financial resolution you can make is to admit when you need help. Tax law is complex and constantly changing. A consultation with a California tax planning attorney can provide a personalized strategy to help you achieve your financial goals. They can identify opportunities you may have missed and help you navigate complex situations involving business ownership, investments, or real estate.

By incorporating these tax-savvy resolutions into your 2026 financial plan, you’re not just saving money—you’re actively building a more secure and prosperous future. Here’s to a wealthy and tax-efficient new year!

Disclaimer: This content is for informational purposes only and not intended as financial or tax advice. Please consult with a qualified professional before making any financial decisions.