Year-End Tax Planning 2026: A Kansas City Checklist | Buttonwood

Most moves that change your 2026 tax bill must happen by December 31, not in April. This is also the first year-end with several of the One Big Beautiful Bill Act's (OBBBA) changes in effect, including the new charitable deduction rules, so last year's checklist is incomplete. Before the holidays, review realized gains and losses, charitable giving, Roth conversions and, for Kansas City families, which side of State Line you live on.

Why can't I fix my 2026 taxes in April?

By the time your return is being prepared, the year it describes is closed. Filing is reporting. Planning has to happen while the year is still open, and right now, it still is.

What's different about year-end planning in 2026?

• Charitable giving: For itemizers, only contributions above 0.5% of adjusted gross income are deductible. For top-bracket taxpayers, the deduction's value is capped at 35%.
• SALT: The $40,400 cap on the state and local tax deduction shrinks as modified adjusted gross income rises from about $505,000 to about $606,000, down to a floor of $10,000.
• AMT: The alternative minimum tax reaches further down than it did in 2025.
• Standard deduction: $16,100 for single filers, $24,150 for heads of household and $32,200 for married couples filing jointly.

Which four conversations are worth having before the holidays?

None of these are recommendations. Whether any of them makes sense depends on your income, your goals, your state of residence and what else is happening in your financial life this year.

1.  Gains and losses. If you sold a business interest, exercised equity compensation, sold real estate or saw a concentrated position move significantly, review what you have realized before December.
2. Charitable giving, and how you give. Donor-advised funds, gifts of appreciated securities instead of cash, bunching several years of giving into one, and qualified charitable distributions for those who are eligible are all worth understanding. Bunching may also help reduce the effect of the new 0.5% floor.
3. Roth conversions. A conversion must be completed by December 31 to count for 2026, and it cannot be undone. It can also affect the SALT phase-out, the AMT and future Medicare premiums, so it is worth modeling first.
4. Business owner items. Entity structure, retirement plan design, equipment purchases, owner compensation and succession timing. Several need weeks of lead time. Owners of S corporations and partnerships should also review any state pass-through entity tax payments with their CPA before December 31.

How do Kansas and Missouri taxes change the picture?

For 2026, Kansas taxes income at 5.20% up to $23,000 ($46,000 for joint filers) and 5.58% above that. Missouri's top rate of 4.7% starts at roughly $9,000 of taxable income.

Capital gains are the bigger difference. Missouri individual filers subtract 100% of federally reported capital gains, short-term and long-term. Kansas taxes them as ordinary income at up to 5.58%. Missouri voters rejected Amendment 5 in August, so Missouri's income tax remains in place. If you are planning a large sale, talk with your advisor and CPA about residency and timing before you sell.

Both states also let you deduct contributions to any state's 529 plan: Kansas up to $3,000 single/$6,000 joint per beneficiary, and Missouri up to $8,000 single/$16,000 joint. [Link: 529 Plans Aren't Just for College Anymore

What goes wrong most often?

It is rarely a bad decision. It is a good decision made in isolation.

A charitable gift made in cash instead of appreciated stock. A conversion that pushed income past a threshold nobody was watching. A sale timed for a business reason, with a tax consequence nobody mentioned until March.

Your CPA sees the tax picture. Your attorney sees the estate documents. Your advisor sees the portfolio. Someone has to look at all of it at the same time, while the year is still open. That coordination is at the center of how Buttonwood works with families.

What should I do now?

Put a coordinated year-end review with your advisor and CPA on the calendar, ideally before Thanksgiving. That leaves room to act on what you decide before the holidays crowd everyone's schedule. The IRS is expected to release its 2027 tax brackets and other inflation-adjusted figures in late October or early November; we will update this article when they are out.

The families who feel calm in April tend to be the ones who had this conversation in the fall.

Frequently asked questions

When should I start year-end tax planning?

Late summer through early fall is generally the practical window. If you have not started, start now: most strategies must be executed by December 31, and some, such as charitable vehicle setup and business retirement plan changes, need weeks of lead time.

Can I still reduce my 2026 taxes after December 31?

Options narrow considerably once the year closes. Certain retirement contributions may still be available into 2027, depending on the account type. Most other items close with the year. Confirm specifics with your CPA.

Does Missouri tax capital gains in 2026?

Not for individual filers. Missouri allows a full subtraction of federally reported capital gains. Kansas does not.

Do I need both a CPA and a financial advisor for this?

They do different jobs. A CPA generally focuses on tax preparation and compliance. An advisor can coordinate how tax interacts with investments, retirement income, charitable goals and estate planning. The value tends to show up where those areas overlap.

Talk it through with us. Buttonwood Financial Group works with individuals and families in Kansas City and beyond to coordinate tax, investment, estate, cash-flow and other decisions.  Schedule a Conversation 

Important disclosures 

For educational purposes only. This content reflects information available as of October 22, 2027 and is not personalized investment, tax or legal advice, and is not a recommendation to buy, sell or hold any security or to adopt any strategy. Tax and estate laws are complex and subject to change; consult your advisor, CPA or attorney about your specific situation. Buttonwood Financial Group is a registered investment adviser; registration does not imply a certain level of skill or training, nor approval by the SEC. Investing involves risk, including the possible loss of principal.