Your benefits and payroll choices can lower your tax bill.
Pre-tax accounts, benefit elections, and a few new deductions can reduce what you owe without a change of jobs. Summer Associates models the federal and Connecticut result, plus New York tax if you commute, before you set your elections and withholding.
Or call (203) 327-4311 to talk with our Stamford office.
Enrolled agents
Our practitioners are enrolled to practice before the Internal Revenue Service.
Federal and Connecticut
We model federal and Connecticut tax together, so you see the state effect of a federal move before you make it.
Local to Fairfield County
Based in Stamford and serving clients for over 35 years.
Planning, not just filing
We focus on the decisions you can still change: elections, timing, and year-end moves.
Where employees can lower their tax
Most savings come from decisions you make at open enrollment and in your payroll settings, not at filing time.
Max your 401(k) and pick Roth vs. pre-tax
$24,500 of deferrals plus catch-ups. Once you decide to contribute, the main choice is pre-tax or Roth.
How it works →HealthUse the HSA as a stealth retirement account
Contributions are deductible, growth is tax-free, and withdrawals for medical costs are tax-free. Payroll HSA contributions also avoid FICA.
How it works →New lawClaim the new overtime, tip, and car-loan deductions
These temporary deductions for 2025–2028 are available even if you take the standard deduction.
How it works →BenefitsOptimize open enrollment
Review the $7,500 dependent care FSA, the health FSA, your HSA plan choice, and the new Trump account employer benefit.
How it works →EquityFix RSU under-withholding
RSUs are often withheld at 22% even when your bracket is 32% or higher.
How it works →RetirementBackdoor and mega-backdoor Roth
High earners can still fund Roth accounts through nondeductible IRA conversions and after-tax 401(k) contributions.
How it works →In-depth guides
Plain-English explainers covering the rules, the numbers, and the common mistakes.
How to max out your 401(k) in 2026, including the new Roth catch-up rule
The $24,500 limit, catch-ups at 50 and 60–63, the Roth catch-up rule for high earners, and 2027 limits so you can set next year's deferrals now.
Read the guide · 7 min →Connecticut taxes for W-2 employees: Paid Leave, state credits, and working in New York
How Connecticut taxes wages, what CT Paid Leave costs, CHET and other state breaks, and how Fairfield County residents who work in New York avoid double tax.
HealthThe HSA as a stealth retirement account: 2026 rules and the investing playbook
2026 HSA limits, which plans qualify (including new bronze and catastrophic options), direct primary care, and how to use the shoebox reimbursement strategy.
New lawNo tax on overtime, tips, and car-loan interest: what employees can actually deduct
How the 2025–2028 overtime, tips, and car-loan interest deductions work, the income phase-outs, the higher SALT cap, and the new charitable deduction for non-itemizers.
How working with Summer Associates starts
The first consultation is free, with no obligation. From the first call to a plan, the process has three steps.
Start with a conversation
Call (203) 327-4311 or send us a note. Tell us what you are working on and what you want to solve.
We review the details
We look at your latest pay stub, benefit elections, equity statements, and last return to see which strategies fit and what they could be worth.
You get a plan
We model the options on your numbers, federal and Connecticut, and set out the steps and the deadlines that apply.
Summer Associates Tax Services, 48 Union St, #1C, Stamford, CT 06906. Convenient to clients throughout Fairfield County, including Greenwich, Darien, New Canaan, Norwalk, Westport, and Fairfield.
Book a free consultationThe 2026 numbers that matter
The 2026 federal limits employees use most, two Connecticut figures, and the official 2027 401(k) limit. Our 401(k) and HSA guides show more 2027 figures.
| Item | 2026 figure | Notes & source |
|---|---|---|
| 401(k) / 403(b) / 457 deferral | $24,500 | 2027: $25,500 (IRS) |
| 401(k) catch-up, age 50+ / 60–63 | $8,000 / $11,250 | Roth-only if prior-year FICA wages exceed $150,000 |
| IRA contribution | $7,500 | Plus $1,100 catch-up at 50+ |
| HSA, self-only / family | $4,400 / $8,750 | Limits per Rev. Proc. 2025-19. The additional $1,000 at 55+ is set by statute |
| Dependent care FSA | $7,500 | Raised from $5,000 starting in 2026 ($3,750 if married filing separately) |
| Health FSA | $3,400 | Employer plans may allow a carryover |
| Standard deduction (single / joint) | $16,100 / $32,200 | Head of household $24,150 |
| SALT deduction cap | $40,400 | Reduced above $505,000 MAGI, not below $10,000 |
| CT Paid Leave payroll contribution | 0.5% | Of wages up to $184,500, max $922.50. 2027 wage base $192,300, max $961.50 (CT Paid Leave Authority, SSA) |
| CT CHET 529 subtraction (single / joint) | $5,000 / $10,000 | Connecticut return only. Excess carries forward 5 years (CT DRS) |
Common questions
Should I choose Roth or pre-tax 401(k) contributions?
Pre-tax usually comes out ahead if you expect a lower tax rate in retirement, and Roth often does if you expect a similar or higher rate. Many people split their contributions. Note that starting in 2026, if your prior-year FICA wages exceeded $150,000, catch-up contributions must be Roth.
Do I need to itemize to claim the overtime or tip deduction?
No. The overtime, tip, car-loan interest, and senior deductions are available whether you itemize or take the standard deduction. For the overtime and tip deductions, married couples must file jointly, and you need a valid Social Security number on the return.
Why do I owe tax when my RSUs vest even though tax was withheld?
Employers typically withhold federal tax on supplemental wages at a flat 22%, or 37% on amounts above $1 million. If your marginal rate is 32%, 35%, or 37%, the difference shows up as a balance due.
Can I contribute to an HSA with any health plan?
You need an HSA-eligible high-deductible plan with a 2026 minimum deductible of at least $1,700 self-only or $3,400 family and an out-of-pocket maximum no higher than $8,500 / $17,000. Starting in 2026, bronze and catastrophic plans also qualify, whether or not you buy them through the marketplace. You also can't be enrolled in Medicare, be claimable as someone else's dependent, or have other disqualifying coverage, such as a general-purpose health FSA, including a spouse's.
Do the federal overtime and tip deductions lower my Connecticut tax?
No. The overtime, tip, car-loan interest, and senior deductions are taken on federal Schedule 1-A after adjusted gross income, and the Connecticut return starts from federal AGI. As of November 2026, Connecticut hasn't enacted matching subtractions, so that income is still taxed on your Connecticut return.
I live in Connecticut and work in New York. Am I taxed twice?
Not on the same income, but you do file in both states. On a New York nonresident return (Form IT-203), you pay New York tax on your New York wages, then claim Connecticut's credit for that tax on Schedule 2 of Form CT-1040. The credit can't exceed the Connecticut tax on that income, so you effectively pay the higher of the two states' tax on it. Under New York's convenience-of-the-employer rule, normal workdays at home usually count as New York days, and Connecticut credits that tax too.
Find out where your paycheck could be lowering your tax.
In a consultation, we look at your pay stub, benefit elections, and equity awards, estimate your federal, Connecticut, and any New York tax for the year, and tell you whether your withholding or deferrals should change.