General information only. Not tax, legal or investment advice. A planning idea named here is not a recommendation for any person. Prem Tax and Accounting Corp is a CPA firm, not a law firm. Tax rules change often and figures are for the tax year shown: confirm with the official source or a qualified adviser before you act. Read the full notice. Book a 10-minute call.

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Planning on the rules that are here to stay

Many tax rules in Public Law 119-21 have no end date, so you can plan around them without racing a deadline. Here are 2026 figures, an invented example and ideas people often consider before December 31.

Prepared by Prem Tax and Accounting Corp. Last reviewed November 6, 2026. Figures as of November 6, 2026.

Public Law 119-21, which many people call the One Big Beautiful Bill Act, set no end date for rates, the standard deduction, the 199A business deduction, 100% bonus depreciation or the estate exemption. That lets you plan around them calmly. The Steady-Ground Planning Pad below collects the 2026 numbers and questions to take to your adviser. Our year-end checklist adds the dates.

The short version

Permanent means no end date. Bracket tops and other amounts still index each year.
Tax year 2026 returns are filed in 2027, and most 2026 moves must be finished by December 31, 2026.
Illinois begins with your federal adjusted gross income (AGI), so federal itemized deductions and 199A leave an Illinois personal return unchanged.

2026 figures behind the ideas

Rule	2026 amount	Source
Standard deduction	$16,100 single, $32,200 joint	Rev. Proc. 2025-32
12% bracket ends at	$50,400 single, $100,800 joint	Rev. Proc. 2025-32
Charity, non-itemizers	$1,000 ($2,000 joint), cash to public charities	Act sec. 70424
Charity, itemizers	Deductible once gifts pass 0.5% of the contribution base (generally AGI)	Act sec. 70425
199A deduction	20%; range starts at $201,750 single, $403,500 joint	Rev. Proc. 2025-32
Section 179	Limit $2,560,000, shrinking after $4,090,000 placed in service	Rev. Proc. 2025-32
Estate and gift exemption	$15,000,000; annual gift exclusion $19,000	Rev. Proc. 2025-32

An invented example: a gift above the floor

A married couple filing jointly in 2026 has AGI of $240,000 and itemizes. They give $6,000 in cash to a public charity. The 0.5% floor is $1,200, so $4,800 is deductible. A couple who takes the standard deduction and gives $1,500 can deduct all of it under the new non-itemizer rule, up to $2,000.

Planning points

People who give often consider bundling gifts into one year so itemizing beats the standard deduction. Donor-advised funds do not count for the non-itemizer deduction. The trap is the 0.5% floor each year.
People near the top of the 12% bracket (2027: $52,025 single, $104,050 joint) often consider whether extra income, such as a Roth conversion, fits this year or next.
Owners buying equipment often consider 100% bonus depreciation or section 179, which need the asset placed in service by December 31, 2026. Illinois adds back federal bonus on Form IL-4562 and allows it back later. We found no Illinois addback for section 179 or for domestic research costs, and the Illinois Department of Revenue has not addressed either by name. See equipment and research expensing.
Business owners often consider how wages and taxable income meet the 199A starting points. The trap is that 199A is taken after AGI, so it does not lower Illinois income.

Ask your adviser before acting on any of these.

The Steady-Ground Planning Pad

Estimate 2026 taxable income and note which bracket it lands in.
List gifts and decide whether you will itemize.
List equipment bought and the date each item started being used.
Note how Illinois treats each item.
Write down the 2027 amounts for next year's plan.

Common questions

Is it too late to plan for 2026?

No, but gifts, equipment and most payments must happen by December 31, 2026.

Do these ideas change my Illinois tax?

Often not. Illinois ignores federal itemized deductions and 199A, but it adds back federal bonus depreciation. Our [state-taxes page](/state-taxes/) has more.

Will the 2027 numbers change my plan?

They can move a bracket top or a deduction. The IRS normally announces next year's amounts in the fall, and the 2027 amounts came out November 5, 2026. Our [2026 numbers](/important-2026/) page covers this year.

Official sources

Keep reading

Please read: general information only

This page gives general information and education about current federal and state tax topics, including recent legislation, planning ideas, retirement and annuity rules, and court decisions. It is not tax, legal, accounting, investment, insurance or other professional advice, and it is not a substitute for advice from a qualified CPA, attorney or other adviser who knows your facts. Reading it does not create a CPA-client or any other professional relationship with Prem Tax and Accounting Corp. Prem Tax and Accounting Corp is a CPA firm, not a law firm. It does not sell insurance or investment products, and it does not recommend, rate or sell any annuity, fund or other product. A planning idea, a strategy name or an example here is not a recommendation to take or avoid any action.

Tax rules, thresholds, rates and deadlines change often, and Congress, the IRS, the courts and the states change how they apply them. Guidance on recent legislation is still being issued. We checked the figures against the official sources named on the page on the date shown (last reviewed November 6, 2026), but we do not promise that this page is complete, current or free of errors, and we do not update it the moment a rule changes. Where the rules are unsettled or guidance is still pending we say so. Amounts for a future year are labelled planning figures until the IRS or another agency publishes them. Examples use invented numbers and are for illustration only.

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Questions about how the new tax law or your year-end moves apply to you? Keshav Agrawal is a U.S. CPA and a Chartered Accountant (CA) from India. We prepare U.S. and Illinois returns, plan with you, and work alongside your financial adviser, insurance agent or attorney. We sell no investment or insurance products. Book a 10-minute call or send us a message.

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