Week 1: January 5-11, 2026
DON’T MISS
2026 Tax Calendar Now Available
The IRS has published key dates for the 2026 filing season:
January 15 - Q4 2025 estimated tax payment due
March 16 - S-Corp and partnership returns due (March 15 falls on Sunday)
April 1 - First-year RMD deadline for those who turned 73 in 2025
April 15 - Individual returns and Q1 2026 estimated payment due
June 15 - Q2 2026 estimated payment due
September 15 - Q3 2026 estimated payment due
Source: IRS Publication 509
THE SOLOPRENEUR’S BRIEF
New Year Tax Planning: Setting Your 2026 Course
The new year brings both obligations and opportunities. Your first priority is the January 15th estimated tax payment for Q4 2025. If you miss this, the IRS assesses penalties if you haven't paid at least 90% of current-year liability or 100% of prior-year liability (110% if AGI exceeds $150,000).
In Plain English: Pay at least what you owed last year and you avoid underpayment penalties. If your prior-year AGI exceeded $150,000, you generally need to pay 110 percent instead.
Documents to Gather Now:
All 1099 forms (1099-NEC, 1099-K, 1099-INT, 1099-DIV)
Business expense receipts by category
Mileage logs and home office measurements
Retirement Contributions
You have until April 15, 2026 for 2025 Traditional/Roth IRA contributions ($7,000; $8,000 if 50+). SEP-IRA and Solo 401(k) employer contributions can be made through your filing deadline with extensions.
2026 Limits:
Solo 401(k) deferral: $24,500
Defined contribution (excluding catch-up): $72,000
IRA: $7,500v
Catch-up contributions (added to limits above):
Age 50–59 or 64+: $8,000
Age 60–63: $11,250
IRA (50+): $1,100
Mandatory Roth Catch-Up (New for 2026)
Starting in 2026, high earners (generally prior-year W-2 wages over $150,000) must make catch-up contributions on a Roth basis. Schedule C filers without W-2 wages are generally not subject to this rule. S-Corp owners with W-2 wages above the threshold must comply.
Below these thresholds, you generally qualify for the full 20% QBI deduction. In the phase-in range, limits begin to apply. For specified service businesses (consulting, law, accounting, health, and financial services), the deduction phases out across this range. For other businesses, wage and asset limits can reduce the deduction above the threshold.
In Plain English: If you are 50 or older and had W-2 wages above $150,000, catch-up 401(k) contributions must go to Roth accounts. Sole proprietors without W-2 wages are generally not affected.
THE INSIDE TRACK
Big News for Equipment Purchases
Did you buy a laptop, vehicle, or equipment for your business in 2025? The good news is you can likely deduct the entire cost this year instead of spreading it out over several years.
The One Big Beautiful Bill Act (signed July 2025) permanently restored 100% bonus depreciation for qualified property acquired after January 19, 2025. This applies to computers, software, office furniture, vehicles, and most equipment used more than 50% for business.
Action: Keep your receipts and inform your tax preparer about all 2025 business purchases.
Source: One Big Beautiful Bill Act (P.L. 119-21)
KEY TAKEAWAY AND WHAT’S COMING
Key takeaway: Don’t forget to make your Q4 2025 estimated tax payment, or you may face penalties. Also, keep in mind the 100% bonus depreciation available for business equipment purchased in 2025, where the full cost of qualified property can be depreciated immediately.
Next week: 1099 season begins. We'll cover what forms to expect, why a big refund means you gave the IRS an interest-free loan, and the 1099-K threshold that determines when PayPal and Venmo report your income.
Disclaimer: This publication is provided for general informational and educational purposes only and does not constitute personalized tax, legal, or accounting advice. Tax laws are complex and subject to change, and their application depends on individual circumstances. Readers should consult qualified professionals regarding their specific situations.
Circular 230 Disclosure: To ensure compliance with U.S. Treasury Department regulations, we inform you that any U.S. federal tax discussion contained in this publication is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code or for promoting, marketing, or recommending any transaction or matter addressed herein.