Tax Season Starts Now
January is the time to get ready for taxes.
Small business owners and individuals should review their finances early. Waiting until April can cause mistakes.
Good planning now makes filing much easier later.
First Deadline of the Year
One of the first important tax deadlines happens in January.
January 15
Individuals who pay estimated taxes must send their fourth estimated payment for 2025.
This usually applies to:
- Self-employed workers
- Business owners
- Freelancers
- Investors with large income
Missing this payment may cause penalties.
Tip: Estimated taxes are paid using Form 1040-ES.
New Tax Changes in 2026
Several tax rules changed this year.
Charitable donations
Taxpayers who do not itemize may now deduct:
- Up to $1,000 in cash donations
- Up to $2,000 for married couples
Itemized donations now must pass a small income limit before they count.
New accounts for children
A new type of savings account may help families build money for children under age 18.
These accounts may offer tax advantages when used correctly.
Education savings update
529 education plans now allow larger withdrawals for school expenses.
The yearly limit increased to:
$20,000 for K-12 education
Small Business Tax Deduction Changes
Many small businesses qualify for the Qualified Business Income deduction.
In 2026:
- The income limits increased
- More businesses may qualify
- A minimum $400 deduction may apply if business income reaches at least $1,000
This can help many small business owners lower their tax bill.
Simple Accounting Tip
Clean records make tax filing easier.
Keep these updated each month:
- Income reports
- Expense receipts
- Payroll records
- bank statements
Even simple bookkeeping helps avoid tax problems later.
Final Thought
January is the best time to organize your finances and review tax changes.
A little preparation now can save stress during filing season.
Contact Lincoln Systems if you need help preparing for the 2026 tax season.
