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How the Recent Federal Tax Legislation Could Affect Your Personal Tax Bill

Jan 18, 2026 | Big Beautiful Bill, Blog, Newsletter, Tax Planning

Written By Steven J. Pope

Recent federal tax legislation introduces changes that may affect how much individuals owe in taxes and how they plan throughout the year. While the full impact depends on income level, filing status, and deductions, many households may see shifts in how credits, deductions, and taxable income are calculated.

For some taxpayers, changes to standard deductions, itemized deductions, or credit eligibility could alter refund amounts or balances due. Others may be affected indirectly through adjustments to retirement contribution rules, capital gains treatment, or limits on certain deductions tied to housing or state and local taxes.

What matters most is that these changes may not be evenly felt. Two households with similar incomes could experience very different outcomes depending on factors such as dependents, home ownership, investment income, or self-employment activity.

What you should do now

  • Review your prior-year return to identify areas most likely to be affected
  • Avoid assuming withholding or estimated payments are still sufficient
  • Consider a mid-year tax projection rather than waiting until filing season

A proactive review allows adjustments before year-end, when planning options are still available.

Written By Steven J. Pope

Steven J. Pope, CPA, is the principal and lead tax advisor at SJP Tax Services, a Wisconsin-based accounting and tax firm serving individuals and small to medium-sized businesses throughout the Milwaukee area and surrounding communities. With over 20 years of combined experience in accounting, bookkeeping, tax, and business services, Steve brings a practical, client-focused approach to navigating complex tax and financial matters. Steve specializes in individual and business tax preparation, proactive tax planning, audit counseling and representation, and small business advisory services. His experience spans closely held businesses, real estate professionals, trusts and estates, and individuals with complex tax situations. He has extensive expertise in areas such as IRS and state audit response, 1031 exchanges, cancellation of debt issues, and the tax rules governing passive activities and real estate professionals. Throughout his career, Steve has emphasized proactive planning rather than reactive compliance. He works closely with clients year-round to identify opportunities to minimize tax liability, manage risk, and support long-term financial stability. Clients value his responsiveness, clarity, and ability to explain complex tax concepts in straightforward terms. Steve is committed to building long-term relationships based on trust, accuracy, and personalized service. Whether meeting clients in the office, at their place of business, or remotely using secure technology, his goal is to meet clients where they are and provide guidance that supports informed financial decisions.

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