2025–2026 Tax Changes: What Columbus Professionals and Retirees Need to Know

There have been a number of meaningful tax updates affecting 2025 returns and planning for 2026. Some of these changes are technical. Others may materially impact retirees, business owners, and high-income professionals here in Columbus.

Rather than focusing on headlines, the more important question is:

How do these changes affect your financial plan?

Below are several areas that deserve attention.

1. Tax Preparation vs. Tax Planning

With ongoing legislative changes, preparing an accurate return has become more complex. That makes it increasingly important to work with a qualified, credentialed tax professional — whether a CPA, attorney, or enrolled agent.

But it’s important to understand the distinction:

• Tax preparation is compliance.
• Tax planning is strategy.

Filing your return correctly is critical. But most tax savings opportunities occur before year-end — through Roth conversions, capital gains management, charitable strategies, and business income coordination.

If you wait until April to think about taxes, most planning opportunities are already gone.

2. Qualified Charitable Distributions (QCDs) and IRA Rollovers

If you’re over age 70½ and made a Qualified Charitable Distribution from your IRA, reporting it correctly on your tax return is critical.

Here’s where confusion often occurs:

• Your Form 1099-R shows the full distribution.
• You must report the total on Line 4a of Form 1040.
• You subtract the QCD amount on Line 4b.
• You check the QCD box.

The same general reporting structure applies to tax-free IRA rollovers.

For retirees in Columbus who give to charity, QCDs remain one of the most tax-efficient strategies available:

• They count toward Required Minimum Distributions.
• They reduce Adjusted Gross Income.
• Lower AGI can help manage Medicare IRMAA thresholds.

Execution and reporting both matter.

3. Health Insurance Premium Tax Credit Changes

If you are retired early and purchasing insurance through the marketplace, the rules around Premium Tax Credits have tightened beginning in 2026.

Income thresholds have reverted to prior levels, and repayment caps for excess credits are eliminated going forward.

What does that mean?

If your income ends up higher than projected — perhaps due to Roth conversions, capital gains, or business income — you may have to repay more of the credit than in prior years.

This makes income planning more important than ever for early retirees who are not yet Medicare eligible.

4. Market Volatility and Policy Uncertainty

Recent policy developments and legal decisions have introduced additional economic uncertainty. While it is tempting to react to headlines, disciplined investors should remain focused on portfolio structure rather than short-term noise.

A properly constructed portfolio should:

• Diversify across U.S. and international equities
• Include high-quality fixed income
• Manage concentration risk
• Align with long-term withdrawal strategy

Tax planning and investment management must work together.

5. IRS Interest Rates and Cash Management

IRS interest rates have declined modestly in 2026, impacting both underpayments and refunds.

While this may not drive major planning decisions, it reinforces the importance of:

• Accurate estimated payments
• Proper withholding
• Coordinated cash management

Avoiding unnecessary penalties or interest should always be part of a disciplined planning process.

Final Thoughts

The tax environment is dynamic. Those who approach planning deliberately and proactively tend to keep more of what they earn.

If you are a professional or retiree in Columbus and want to ensure your retirement plan, tax strategy, and investment portfolio are aligned for 2026 and beyond, it may be time for a structured review.

Blue Advisors is a fee-only fiduciary financial planning and investment management firm based in Columbus, Ohio. We work with busy professionals and retirees who value clarity, discipline, and long-term perspective.

If you would like to discuss how these tax updates may affect your personal situation, schedule an introductory conversation.

Schedule a Planning Review

Tax law is changing. Markets are evolving. Retirement distribution rules are becoming more technical.

If you are a busy professional or retiree in Columbus, Ohio, now is the time to ensure your financial plan is coordinated and tax-efficient.

At Blue Advisors, we provide:

• Fee-only fiduciary financial planning
• Tax-aware investment management
• Retirement income strategy
• Roth conversion analysis
• Charitable giving optimization
• Coordination with your CPA and estate attorney

If you would like clarity around how the 2025–2026 tax changes impact your situation, schedule an introductory conversation.

Click here to schedule a meeting →

Frequently Asked Questions

Do I need both a financial advisor and a CPA?

In most cases, yes. Your CPA focuses on accurate tax preparation and compliance. A financial advisor should focus on forward-looking strategy — Roth conversions, capital gains timing, withdrawal sequencing, and long-term portfolio positioning. The two roles should complement each other.

How do Qualified Charitable Distributions reduce taxes?

A QCD allows individuals age 70½ or older to transfer money directly from an IRA to a qualified charity. The distribution counts toward Required Minimum Distributions but is excluded from taxable income. Lower Adjusted Gross Income can also reduce Medicare premium surcharges.

How do health insurance subsidies affect retirement planning?

If you retire before Medicare and purchase coverage through the marketplace, income planning becomes critical. Higher-than-expected income from Roth conversions, capital gains, or business income may reduce or eliminate your premium tax credit and require repayment.

When should I consider a Roth conversion?

Roth conversions may make sense in years when your taxable income is temporarily lower — for example, early retirement years before Social Security or Required Minimum Distributions begin. Proper modeling is essential to avoid unintended tax consequences.

What makes a fee-only fiduciary advisor different?

A fee-only fiduciary advisor does not receive commissions from products. Compensation is transparent and aligned with client interests. Advice is based on planning objectives, not product sales.

By James Blue, Fee-Only Advisor | Blue Advisors

James Blue is the founder of Blue Advisors, a fee-only financial planning and investment management firm based in Columbus, Ohio.

This content is provided for informational and educational purposes only and should not be construed as personalized investment, tax, or legal advice. The views expressed are those of the author as of the date published and are subject to change without notice. Blue Advisors is a fee-only registered investment advisory firm. Advisory services are offered only pursuant to a written advisory agreement and to clients in the State of Ohio, the Commonwealth of Pennsylvania, and other jurisdictions where Blue Advisors is properly registered or exempt from registration. Past performance is not indicative of future results. Readers should consult with their financial advisor, tax professional, or attorney before making financial decisions.