End-of-the-Year Money Moves
Here Are Some Things You Might Consider Before Saying Goodbye to 2026
What has changed for you in 2026? For some, this year has been as complicated as learning a new dance. Did you start a new job or leave a job behind? That’s one step. Some bigger changes, especially those in the family, are practically a pirouette. If notable changes have occurred in your personal or professional life, you may want to review your finances before the end of this year and the beginning of 2027. Proving that you have all the right moves in 2026 might put you in a better position to tango with 2027.
Even if your 2026 has been relatively uneventful, the end of the year is still a good time to get cracking and see what changes may need to be made.
Do you engage in tax-loss harvesting? That’s the practice of taking capital losses (selling securities worth less than what you first paid for them) to manage capital gains. If you are thinking about this move, consider seeking some guidance from a professional who can provide insights.
In fact, you could even take it a step further. Consider that up to $3,000 of capital losses in excess of capital gains can be deducted from ordinary income, and any remaining capital losses above that amount can be carried forward to offset capital gains in upcoming years.1
Keep in mind this article is for informational purposes only and is not a replacement for real-life advice. Please consult your tax professional before making any changes to your tax strategy.
Do you want to itemize deductions? You may want to consider taking the standard deduction for the 2026 tax year, which has increased to $16,100 for single filers and $32,200 for joint filers. If you think it might be better to itemize, now would be a good time to get the receipts and assorted paperwork together.2
Are you thinking of gifting? How about donating to a qualified charity or non-profit organization before 2026 ends? Your gift may be eligible for a tax deduction. For some gifts, you may be required to itemize deductions.3
While we’re on the topic of year-end moves, why not take a moment to review a portion of your estate strategy? Specifically, take a look at your beneficiary designations. If you haven’t reviewed them for some time, double-check that these assets are structured to go where you want them to, should you pass away. Lastly, look at your will to see that it remains valid and up-to-date.
Check on the amount you have withheld. If you discover that you have withheld too little on your W-4 form so far, you may need to adjust your withholding before the year ends.
What can you do before ringing in the New Year? New Year’s Eve may put you in a dancing mood, eager to say goodbye to the old year and welcome 2027. Please do it now rather than in February or March. Little year-end moves might help you improve your short-term and long-term financial situation.
Sources:
1. IRS.gov, 2026
2. IRS.gov, 2026
3. IRS.gov, 2026
Navigating Short-Term Rental Tax Regulations
The short-term rental market has grown from a casual side income into a serious real estate asset class. Airbnb and VRBO have made it easier than ever to rent out a property, but the tax rules behind that income are far more nuanced than most owners realize.
Whether you rent for a weekend or a full month, how long your guests stay and how much personal service you provide determines your entire tax classification. Get it right, and you may be able to offset active income with rental losses through what’s known as the “STR Loophole.” Get it wrong, and you could face unexpected self-employment tax or increased audit risk.
A few things every short-term rental owner should know:
- The 14-Day Rule. If you rent your property for 14 days or fewer per year, that income is 100% tax-free and doesn’t even need to be reported.
- The STR Loophole. Properties with an average guest stay of 7 days or less can bypass standard passive activity loss rules, without requiring Real Estate Professional Status.
- The material participation trap. Hiring a full-service property manager can make it nearly impossible to meet the hours test that keeps your losses non-passive.
- Cost segregation opportunities. Engineering-based studies can accelerate depreciation on building components, creating significant year-one deductions.
These strategies come with real compliance requirements: detailed time logs, accurate stay tracking, and annual review of whether your services cross into “substantial services” territory.
We’ve put together a comprehensive white paper covering the full framework, from federal classification rules to a five-step compliance roadmap. If you own or are considering a short-term rental property, it’s worth the read.
Have questions about how these rules apply to your property? Contact Rodney W Deloe, CPA, CEPA, to schedule a consultation.
How the IRS Is Changing the Way You Make Tax Payments
If you currently use the Electronic Federal Tax Payment System (EFTPS) to pay your individual federal taxes, there is a change on the horizon you should know about. The IRS is moving individual taxpayers away from EFTPS and toward two newer tools: IRS Direct Pay and IRS Individual Online Accounts. Here is what the transition means for you and what steps to take now.
Why the IRS Is Making This Change
This shift is part of a broader modernization effort by the IRS and the U.S. Treasury. The goals are straightforward: improve security, reduce costs, and give taxpayers a better experience. Paper checks remain vulnerable to mail theft and loss, and the legacy EFTPS infrastructure is expensive to maintain. The newer tools offer stronger fraud protections, instant payment confirmation, and a single place to view your balances, payment history, and tax notices.
Key Dates to Know
- October 17, 2025: New individual enrollments in EFTPS stopped. If you were not already enrolled at that point, EFTPS is no longer an option for you as an individual taxpayer.
- Late 2026: EFTPS will be fully phased out for individual taxpayers. Even current EFTPS users will need to switch to Direct Pay or an IRS Individual Online Account by then.
Who Is Affected
These changes apply to individual taxpayers only. If you currently use EFTPS to pay your personal federal taxes, this transition affects you. Businesses, payroll providers, and trustees will continue using EFTPS for federal tax deposits and batch payments without interruption.
Tax professionals who help clients with estimated or balance-due payments should also take note, as the enrollment cutoff and 2026 deadline will affect how they guide clients going forward.
Your Two Options Going Forward
IRS Direct Pay lets you pay directly from your bank account with no fees, no enrollment required, and instant confirmation. It works well for one-time or occasional payments, including quarterly estimated taxes.
IRS Individual Online Account is a more robust option if you want to manage your tax obligations in one place. Once you create an account, you can view your balance, payment history, tax transcripts, and notices, in addition to making payments.
The Benefits of Making the Switch
The newer tools are not just a replacement for EFTPS, they are a genuine upgrade. Here is what you gain by moving to IRS Direct Pay or an IRS Individual Online Account:
- Stronger security: Modern authentication protocols better protect your data and significantly reduce fraud risk compared to paper checks and legacy systems.
- Instant confirmation: Electronic payments post faster and you receive an immediate confirmation number for your records.
- Everything in one place: An IRS Individual Online Account lets you view your balance, payment history, notices, and transcripts all in one secure location.
- No fees: IRS Direct Pay lets you pay directly from your bank account at no cost.
- Less reliance on mail: No more risk of lost checks, mail delays, or misapplied paper payments.
What You Should Do Now
- If you currently use EFTPS, start familiarizing yourself with Direct Pay or set up an IRS Individual Online Account before the 2026 deadline. Do not wait until the last minute.
- If you make quarterly estimated payments, update your payment process now so you are not scrambling at a due date.
- If you work with a tax professional, ask them to walk you through the transition so your payments continue to post correctly and on time.
The good news is that both replacement tools are free to use and designed to be straightforward. The hardest part is simply making the switch before the deadline.
Helpful Resources
- IRS Direct Pay — Make a payment directly from your bank account, no enrollment required.
- IRS Individual Online Account — View your balance, payment history, notices, and transcripts, and make payments all in one place.
- EFTPS.gov — Information on the current system and the transition timeline for existing users.
- National Association of Tax Professionals (NATP) — Professional guidance on the EFTPS phase-out and what it means for taxpayers.
Questions about how this affects your situation? Whether you’re an individual taxpayer or a business owner in the Pittsburgh, Canonsburg, and southwestern Pennsylvania area, our team at MFG Tax Services is here to help. Reach out to us and we’ll make sure your payments are set up correctly through the transition.
Strategies for Managing a Tax Bill
If you find yourself owing money to the IRS this tax season, rest assured that several options are available to manage your tax bill effectively. Below are some steps and strategies to consider, as well as ways we can work together to reduce your tax liability in the future.
Setting Up a Payment Plan with the IRS: The IRS offers installment agreements that allow you to pay your tax bill over time. This can be a good option if paying in full would strain your finances.
Important Note: Payment plans may include interest and fees but are less costly than ignoring the debt. Late payments can incur penalties of up to 0.5% of the unpaid amount per month, plus interest. Paying as much as you can by the tax deadline minimizes these costs.
Using Savings to Cover Taxes Owed: If you have cash reserves, using savings can help avoid potential penalties and interest charges. Before drawing from savings, consider your emergency fund and overall financial goals.
Reviewing Missed Deductions or Credits: It’s worth revisiting your return to ensure you haven’t overlooked deductions or credits that could lower the amount owed. Examples include education credits, medical expense deductions, or home office expenses (if applicable). If eligible deductions or credits are found, filing an amended return may reduce your tax liability.
Exploring Additional Options: Thoughtfully withdrawing from investments may be an option. We’ll want to discuss this, identify your best option, and weigh all your options appropriately before taking action.
Looking Ahead:
To help reduce your tax liability in the future, we can explore strategies such as:
- Maximizing retirement account contributions to reduce taxable income.
- Adjusting withholding or estimated payments to avoid surprises.
- Reviewing tax-efficient investment strategies.
- Optimizing charitable giving or other deductions.
If you owe taxes or have questions about the best approach for your situation, we’re here to help. Together, we can identify the best sources to fund your payment and develop a plan to manage your tax strategy. We have resources available to minimize tax liabilities and maximize your investment opportunities. Feel free to reach out to schedule a time to discuss your options. The best time to discuss this is early, while we have time to make necessary changes.
If you have friends or family who’ve been hit with a large tax bill this year, feel free to share this with them. And if they could use help with financial planning or lowering their tax liability, you’re welcome to pass along our information or introduce us:
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through The Musuneggi Financial Group, a registered investment advisor. The Musuneggi Financial Group and MFG Private Wealth are separate entities from LPL Financial. Tax preparation services offered through MFG Tax Services are separate and not affiliated with LPL Financial, LPL Financial does not offer tax advice or tax preparation services. Insurance products are offered through MFG Insurance Services or its licensed affiliates. MFG Insurance Services and its licensed affiliates are separate entities from and not affiliates of LPL Financial.