Utah · Retirement Income · Taxes
Year-End Tax Moves for Utah Retirees: 2026 Checklist
Most retiree tax moves have a December 31 deadline. Here is what to check before the year ends, using the 2026 federal figures and Utah's own rules.
The bottom line
- Take your RMD by December 31, 2026 if you have already taken your first one. A missed RMD can owe a 25% excise tax, or 10% if you fix it within two years (IRS).
- At 70½ or older you can give up to $111,000 per person by QCD in 2026. It counts toward your RMD and stays out of your AGI.
- A couple who are both 65+ can deduct up to $47,500 in 2026, so about $148,300 of income keeps them in the 12% bracket. That room is what Roth conversions and capital gains are measured against.
- Utah taxes income at a flat 4.5%, but in the Social Security credit phase-out range, extra income costs about 7% in Utah tax.
- 2026 income generally sets your 2028 Medicare premiums through IRMAA. Only 13.3% of Utah returns itemized in tax year 2023, so "bunching" gifts or using QCDs matters more than most people think.
The year-end moves that matter most for Utah retirees are your required minimum distribution, any charitable giving from your IRA, Roth conversions and capital gains sales. Each has a December 31 deadline, and each affects three bills at once: federal tax, Utah's 4.5% tax and your Medicare premiums two years from now. The figures below are the 2026 numbers published by the IRS, the Centers for Medicare & Medicaid Services and the Utah State Tax Commission.
Which 2026 tax numbers should Utah retirees know?
These are the federal figures for tax year 2026, the return you will file in spring 2027. The senior deduction is new for 2025 through 2028 and is on top of the extra standard deduction people 65 and older already get.
| 2026 figure | Married filing jointly | Single |
|---|---|---|
| Standard deduction | $32,200 | $16,100 |
| Extra standard deduction, age 65+ | $1,650 per person | $2,050 |
| Senior deduction, age 65+ (phases out above $150,000 / $75,000 MAGI) | $6,000 per person | $6,000 |
| Total deductions if 65+ with full senior deduction | $47,500 | $24,150 |
| 12% bracket ends at (taxable income) | $100,800 | $50,400 |
| 22% bracket ends at (taxable income) | $211,400 | $105,700 |
| 0% long-term capital gains rate up to (taxable income) | $98,900 | $49,450 |
| QCD limit, age 70½+ | $111,000 per person | $111,000 |
| First Medicare IRMAA tier starts above (2026 premiums, MAGI) | $218,000 | $109,000 |
| Utah income tax rate | 4.5% flat | |
Sources: IRS Revenue Procedure 2025-32, sections 4.01, 4.03 and 4.14 — irs.gov/pub/irs-drop/rp-25-32.pdf; IRS Schedule 1-A (senior deduction) — irs.gov; IRS Notice 2025-67 (QCD limit) — irs.gov/pub/irs-drop/n-25-67.pdf; CMS, 2026 Medicare Parts A & B Premiums and Deductibles — cms.gov; Utah State Tax Commission, Tax Rates — incometax.utah.gov/paying/tax-rates. Totals are our arithmetic.
Have you taken your 2026 required minimum distribution?
If you are 73 or older and have already taken your first RMD, your 2026 RMD from traditional IRAs and most workplace plans is due by December 31, 2026. The IRS says you can take more than the minimum, but not less. If you are still working and don't own 5% of the company, your current employer's plan can usually wait until you retire; IRAs cannot.
If you turn 73 in 2026, you can delay your first RMD to April 1, 2027. The catch is that your 2027 RMD is still due December 31, 2027, so you would report two RMDs on one tax return. For many Utah retirees, taking the first one in 2026 spreads the income more evenly.
Missing an RMD is expensive. The IRS says the amount you should have taken can owe a 25% excise tax, reduced to 10% if you take it and correct it within two years, reported on Form 5329.
Source: IRS, Retirement Plan and IRA Required Minimum Distributions FAQs — irs.gov. Our Utah RMD guide covers how the amount is calculated.
Should you give to charity straight from your IRA?
If you are 70½ or older and give to charity anyway, a qualified charitable distribution (QCD) is often the most tax-efficient way to do it. The IRA custodian sends the money directly to an eligible charity. The gift counts toward your RMD, and it is left out of your adjusted gross income. The 2026 limit is $111,000 per person, up from $108,000 in 2025.
Keeping that money out of AGI matters more in Utah than it might seem. Utah starts from your federal AGI, so a QCD lowers your Utah taxable income too. It also lowers the modified AGI that Utah uses for its Social Security credit and that Social Security uses for IRMAA. An itemized charitable deduction can't do those things, because it comes off after AGI.
Two 2026 changes affect people who give without a QCD. If you don't itemize, you can now deduct up to $1,000 ($2,000 for joint filers) of cash gifts to eligible charities. If you do itemize, only the part of your gifts above 0.5% of AGI is deductible. Gifts to donor-advised funds don't count for the non-itemizer deduction.
Sources: IRS Notice 2025-67 — irs.gov; IRS, Qualified Charitable Distributions — irs.gov; IRS 2026 Form 1040-ES, "What's New" (charitable deduction changes) — irs.gov/pub/irs-pdf/f1040es.pdf. More detail in our QCD guide.
Why does itemizing matter less than it used to in Utah?
Because most Utah households no longer itemize. In tax year 2023, 1,317,570 of 1,542,530 Utah returns (85.4%) took the standard deduction and only 205,520 (13.3%) itemized, according to IRS Statistics of Income data. 198,450 Utah returns claimed the extra standard deduction for age or blindness. With a 65+ couple's deductions now at $47,500 in 2026, a property tax bill and ordinary giving rarely add up to more than the standard deduction.
That leaves two common strategies. One is a QCD, which helps whether or not you itemize. The other is "bunching": putting two or three years of gifts into one year so you itemize that year and take the standard deduction in the others. The new 0.5% floor makes bunching slightly less valuable for itemizers, so compare both before the end of the year.
Retirement income is a big part of Utah's tax base. These were the three largest retirement income lines on Utah returns in tax year 2023:
Source: IRS Statistics of Income, Historic Table 2, Utah, tax year 2023 — irs.gov/pub/irs-soi/23in45ut.xlsx. Returns reporting each item: pensions and annuities 231,000; Social Security 196,070; IRA distributions 123,300. Percentages are our arithmetic.
How much room is left in your tax bracket?
Before December 31, estimate where your 2026 taxable income will land. If it is below the top of the 12% bracket, you may have room to add income at 12% now that could be taxed at 22% or more later, for example when RMDs grow or one spouse is widowed and starts filing single.
Our arithmetic from IRS Rev. Proc. 2025-32: top of the 12% bracket ($100,800 joint, $50,400 single) plus 2026 deductions for filers 65+ who qualify for the full senior deduction ($47,500 joint, $24,150 single). Assumes all income is ordinary income. Only the taxable part of Social Security counts, and that part depends on your other income.
Two ways retirees use that room:
- Roth conversions. Moving money from a traditional IRA to a Roth IRA adds the converted amount to this year's income. Conversions done by December 31 count for 2026. They can't be undone. See our Roth conversion guide.
- Capital gains at 0%. Long-term gains are taxed at 0% federally up to $98,900 of joint taxable income ($49,450 single). Selling appreciated investments in a taxable account up to that line, and buying back if you like, can reset your cost basis. Utah still taxes the gain at 4.5%.
How does Utah's Social Security credit change the math?
Utah taxes Social Security, then gives a credit that can cancel that tax. The credit equals 4.5% times the Social Security benefits included in your Utah taxable income. Under Utah Code 59-10-1042, it shrinks by 2.5 cents for every dollar of modified AGI above $90,000 for joint filers or $54,000 for single filers.
Take a hypothetical couple in Ogden with $36,000 of Social Security in their Utah taxable income. Their full credit is $1,620. Above $90,000 of modified AGI, every extra $1,000 of income, such as a Roth conversion or an IRA withdrawal, costs them $45 in Utah tax plus $25 of lost credit. That is an effective Utah rate of about 7% until the credit runs out at about $154,800 of modified AGI.
| Couple's modified AGI | Utah Social Security credit | Utah rate on the next dollar |
|---|---|---|
| $90,000 or less | $1,620 (full) | 4.5% |
| $110,000 | $1,120 | About 7% |
| $130,000 | $620 | About 7% |
| $154,800 or more | $0 | 4.5% |
Illustrative only. Our arithmetic using Utah Code §59-10-1042(2) and (4), effective January 1, 2026 — le.utah.gov, and Utah's 4.5% rate. Utah's modified AGI for this credit adds tax-exempt interest back in. You can't claim this credit and Utah's retirement credit on the same return. Assumes the couple's Social Security in Utah taxable income stays at $36,000; in practice more of it can become taxable as income rises.
That doesn't mean a conversion in that range is a bad idea. It means the real Utah cost is closer to 7% than 4.5%, and a QCD in the same year can offset some of it. Our guide to how Utah taxes Social Security walks through the credit.
How do December decisions affect your Medicare premiums?
Medicare's income-related surcharge, IRMAA, uses your tax return from two years earlier. So the income you report for 2026 generally sets your 2028 Part B and Part D premiums. In 2026, the standard Part B premium is $202.90 a month. The first IRMAA tier starts above $109,000 of modified AGI for single filers and $218,000 for joint filers, and it adds $81.20 a month per person to Part B, about $1,949 a year for a couple.
The tiers work like cliffs: one dollar over a line moves you into the higher premium for the whole year. CMS hasn't announced the 2028 thresholds yet, but they are adjusted for inflation, so the 2026 lines are a reasonable guide. If a large Roth conversion or home sale would push you just over a line, splitting it across December and January can keep each year below it. If your income dropped because you retired, you can ask Social Security to use the newer year with Form SSA-44.
Sources: CMS, 2026 Medicare Parts A & B Premiums and Deductibles — cms.gov; SSA, POMS HI 01101.020, IRMAA sliding scale tables (based on the tax return two years prior) — secure.ssa.gov. Our IRMAA guide has every tier.
What should be on a Utah retiree's year-end checklist?
- Estimate your 2026 income now. Add pensions, IRA withdrawals, the taxable part of Social Security, interest, dividends and any gains. Your October or November statements are enough for a first pass.
- Finish your RMD by December 31. Custodians get busy in December, so request it early. If you are 70½ or older and give to charity, send part of it as a QCD first.
- Decide on a Roth conversion with your bracket, Utah's Social Security credit and the IRMAA lines in front of you. It must be completed by December 31 to count for 2026.
- Review taxable accounts for gains and losses. Consider harvesting gains in the 0% range or losses to offset gains.
- Choose between bunching and a QCD for this year's charitable gifts, and keep written acknowledgments from each charity.
- Check your withholding and estimates. The fourth-quarter 2026 estimated payment is due January 15, 2027. If you are short, ask your IRA custodian or a tax professional whether extra withholding from a December distribution can close the gap.
- Check your Medicare plan by December 7 and keep any IRMAA letter from Social Security with your tax papers.
Sources: IRS 2026 Form 1040-ES (payment due dates) — irs.gov; IRS RMD FAQs — irs.gov.
Bring your latest statements, your Social Security benefit letter and your 2027 Medicare plan notice. We'll walk through your retirement income, how much is guaranteed and how this year's moves could affect your Medicare costs, in plain English and with no pressure. Education, not tax advice; we work alongside your tax professional. We do not offer every plan available in your area. By calling or texting, you agree we may contact you at the number you provide; reply STOP to opt out.
Talk to a planner →Frequently asked questions
When is the 2026 RMD deadline?
December 31, 2026, for anyone who has already taken a first required minimum distribution. If you turn 73 in 2026, your first RMD can wait until April 1, 2027, but your second one is still due by December 31, 2027, so delaying puts two taxable withdrawals in one year. The IRS says a missed RMD can owe a 25% excise tax, cut to 10% if you correct it within two years.
What is the 2026 QCD limit?
$111,000 per person for 2026, up from $108,000 in 2025, according to IRS Notice 2025-67. You must be at least 70½, and the money must go directly from your IRA to an eligible charity. A QCD counts toward your RMD and is left out of your adjusted gross income, which also helps with Medicare IRMAA and Utah's Social Security credit.
How much income can a retired Utah couple have and stay in the 12% bracket?
For 2026, the 12% bracket for joint filers ends at $100,800 of taxable income (IRS Rev. Proc. 2025-32). A couple who are both 65 or older and get the full senior deduction can deduct $47,500, so roughly $148,300 of income before deductions keeps them in the 12% bracket. How much of your Social Security is taxable changes the math, so run your own numbers or ask a tax professional.
Does a Roth conversion affect my Utah Social Security credit?
It can. Under Utah Code 59-10-1042, the Social Security credit shrinks by 2.5 cents for each dollar of modified AGI above $90,000 for joint filers or $54,000 for single filers. While you are in that phase-out range, extra income such as a Roth conversion costs Utah's 4.5% tax plus the lost credit, about 7% in total.
Can year-end income moves raise my Medicare premiums?
Yes, two years later. Social Security sets Medicare IRMAA surcharges from your tax return two years earlier, so 2026 income generally sets your 2028 Part B and Part D premiums. In 2026, the first IRMAA tier begins above $109,000 of MAGI for single filers and $218,000 for joint filers, and it adds $81.20 a month per person to Part B (CMS). The 2028 thresholds have not been set.
Sources
- IRS — Revenue Procedure 2025-32 (2026 tax brackets, standard deduction, capital gains thresholds): irs.gov/pub/irs-drop/rp-25-32.pdf
- IRS — Notice 2025-67 (2026 retirement plan amounts, QCD limit $111,000): irs.gov/pub/irs-drop/n-25-67.pdf
- IRS — Schedule 1-A (senior deduction): irs.gov/pub/irs-pdf/f1040s1a.pdf
- IRS — Retirement Plan and IRA Required Minimum Distributions FAQs: irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs
- IRS — Qualified Charitable Distributions: irs.gov/retirement-plans/irc-408-d-1-qualified-charitable-distributions
- IRS — 2026 Form 1040-ES (estimated tax due dates; 2026 charitable deduction changes): irs.gov/pub/irs-pdf/f1040es.pdf
- IRS Statistics of Income — Historic Table 2, Utah, tax year 2023: irs.gov/pub/irs-soi/23in45ut.xlsx
- Utah Code §59-10-1042, Nonrefundable tax credit for Social Security benefits (effective January 1, 2026): le.utah.gov
- Utah State Tax Commission — Tax Rates: incometax.utah.gov/paying/tax-rates
- CMS — 2026 Medicare Parts A & B Premiums and Deductibles: cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles
- SSA — POMS HI 01101.020, IRMAA Sliding Scale Tables: secure.ssa.gov/poms.nsf/lnx/0601101020
About this article. Written by the Utah Retirement Income Data Desk and reviewed by Brian Penner, Retirement income & long-term care planner. Educational only — not financial, tax, investment, or legal advice. Tax figures are the published 2026 amounts on the dates shown and can change; your own results depend on your full return. Examples are hypothetical, use our own arithmetic, and are not projections of any household's results. Check tax questions with a tax professional or the Utah State Tax Commission. Utah Retirement Income is a licensed independent insurance agency (NPN 16493717) and is not a government agency; we are not connected with or endorsed by the IRS, the Utah State Tax Commission, the Social Security Administration, Medicare, the Centers for Medicare & Medicaid Services, or any government program, and we do not prepare tax returns or sell securities. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area; please contact Medicare.gov, 1-800-MEDICARE, or your State Health Insurance Assistance Program — in Utah, the Utah SHIP — to get information on all of your options. A $0-premium plan is not free; you still pay Part B premiums and cost-sharing. Annuity guarantees are subject to the claims-paying ability of the issuing company and are not FDIC-insured; there are no guaranteed investment returns and no promise of savings. If you call or text us, you consent to be contacted at the number you provide about your options; message and data rates may apply, and you can opt out at any time by replying STOP.