Series Finale
Final installment. Tax Season 2026: IRS Compliance and Updates Series. Comprehensive overview. 2026 IRS changes. Strategic impact. Small business focus. Entrepreneurs. Individual filers.
Legislative Landscape
One Big Beautiful Bill Act (OBBBA). Major tax reform. Significant structural shifts. Permanent provisions. Expiring rules replaced. Regulatory stability.
QBI Permanent
Section 199A. Qualified Business Income deduction. Now permanent. 20% deduction rate. Pass-through entities. Sole proprietorships. Partnerships. S Corps. LLC formation services. Qualified active trades. Expanded phase-out ranges. Joint filers: $150,000 range. Single filers: $75,000 range. Minimum $400 deduction. Requirements: $1,000 qualified income. Material participation.
Bonus Depreciation
100% bonus depreciation. Permanent status. Property placed in service after January 19, 2025. Machinery. Equipment. Specific vehicles. Software. Full deduction year one. Immediate tax relief. Capital expenditure planning. Small business tax planning.
Section 179
Expanded limits. Indexed to inflation. $2.5 million expensing cap. $4 million phase-out threshold. Tangible personal property. Off-the-shelf software. Qualified improvement property. Direct expensing. Cash flow optimization.
Schedule 1-A
New form. Additional deductions. "Below-the-line." Available 2025–2028. Tips. Overtime. Car loan interest. Senior deduction. Attached to Form 1040. Reducer of taxable income.
Tip Deductions
No tax on tips. $25,000 per return cap. Flat limit. Qualified tip income. Occupations customarily tipped. Must be reported. W-2 Box 7. Form 4137. MAGI phase-out: $150,000 single / $300,000 joint.
Overtime Deductions
No tax on overtime. $12,500 single. $25,000 joint. Qualified overtime compensation. Premium portion (0.5x). FLSA required rates. Wage-based. MAGI phase-out applies.
Vehicle Interest
No tax on car loan interest. Personal-use passenger vehicles. $10,000 annual cap. Requirements: New vehicle. U.S. assembled. GVWR < 14,000 lbs. Loan post-2024. First lien. VIN reporting required. Personal vs. business split for self-employed.
1099 Thresholds
Reporting changes. Payments after 2025. 1099-NEC. 1099-MISC. Threshold: $2,000. Up from $600. 1099-K (PayPal/Venmo). Threshold: $20,000 and 200 transactions. Eliminated $600 rule. Reduced compliance burden. Occasional sellers exempt.
SALT Deduction
State and Local Tax cap. Slight increase. Joint filers: $40,400. Married filing separately: $20,200. High-tax state owners. Property tax impact. Income tax impact.
R&D Costs
Domestic R&D. Immediate expensing. Permanent change. No 5-year amortization. Research and experimental costs. Refund opportunities. 2022–2024 amended returns. Gross receipts under $31 million. Cash recovery potential.
BOI Compliance
Beneficial Ownership Information. Corporate Transparency Act. FinCEN administration. Mandatory reporting. LLCs. Corporations. Identifying owners. Identifying controllers. Strict deadlines. Civil penalties. Criminal penalties. Registered agent service. Entity maintenance.
Payroll Updates
Payroll services. New reporting. W-2 requirements. Separate qualified tips. Separate qualified overtime. Compliance accuracy. E-filing 1099. Withholding adjustments.
Business Formation
LLC formation services. New entity structures. Tax election shifts. S-Corp vs. C-Corp analysis. OBBBA impact. Liability protection. Professional setup.
Insurance Protection
Risk management. Life insurance agent. Renters insurance. Car insurance. Business coverage. Integrated planning. Asset protection.
Notary Needs
Document verification. Notary services near me. Contract signing. Official certification. Professional oversight.
Action Steps
Review 2026 earnings. Calculate QBI eligibility. Analyze capital purchases. Verify 1099 thresholds. Submit BOI reports. Adjust payroll systems. Consult tax professionals.
MCG Service
Professional consulting. External communication. Tax preparation for small business. Business formation. Payroll set up. Insurance. Registered agent. Notary. Expert guidance. Minimal stress. Full compliance.
Schedule Today
Contact MCG Service. Review your 2026 tax plan. Ensure compliance. Maximize deductions. Use direct action. Secure your business future.