Read on to discover the top changes to taxes that are already having an impact on small businesses this year. To optimize these and set your business on a stronger, more purposeful financial footing for the coming months, you should work closely with a service providing tax preparation in Coral Gables:

Updated tax brackets and higher standard deductions

Standard IRS deductions from 2026 have been increased to:

• $16,100 for single filers
• $32,200 for married filing jointly
• $24,150 for heads of household

Tax brackets have also shifted, with the top rate of 37% now applicable to incomes of more than $64,600 (single) and $768,700 (joint).

Permanent QBI deduction

Now permanent for entities like partnerships, S-Corps and sole proprietors that are classed as pass-through, the 20% QBI deduction has been made permanent. This will have a major impact on small businesses as it can help them lower their taxable income, and for qualifying taxpayers, a minimum $400 deduction will also have a significant impact. 

Permanent return of bonus depreciation and section 179

A number of provisions designed to be business-friendly have been restored:

• 100% bonus depreciation has become permanent
• Expensing for Section 179 has been increased to $2,5 million

For businesses who rely heavily on equipment, this offers up a whole host of significant planning opportunities. 

Contractors and payment platforms have new reporting thresholds

• 1099-NEC threshold rises to $2,000
• 1099-K threshold goes back to $2,000 and 200 transactions

If your business relies on digital payment processors or contractors, your bookkeeping systems must be updated accordingly. 

Breaks for employees

Provided payroll systems are updated appropriately, employees can benefit from new deductions for overtime and tips through to 2028. 

Enhanced R&D expensing and interest deduction

• Allowing for greater write-offs, the interest deduction limit has gone back to 30% of EBITDA
• Domestic R&D costs can now be fully expensed, a significant improvement for companies centred around innovation, engineering and tech 

How to optimize your small business’s tax position in 2026:

There are a lot of structural changes to the tax environment this year, and to make the most of your tax position, you should action the following steps with help from a bookkeeper and tax expert: 

• Look into reducing your taxable income through shifting to a partnership or S-Corp; would it be of benefit?
• Early in the year, plan the installation and setup of equipment to make sure you’re eligible for bonus deprecation and Section 179
• To ensure compliance and make the most of deductions you may be eligible for, use automated mileage-tracking apps
• Have a professional audit your payroll settings
• To maximize deductible interest, be sure to document all R&D activities that qualify, and take a closer look at financing structures
• Don’t save bookkeeping and tax prep to the end of the year! Start working with bookkeeping services in Miami as soon as possible to avoid last-minute scrambles. 

There will likely be plenty of challenges this tax season for some businesses, but with sound forward-planning, there could well be plenty of money-saving opportunities too. One thing that is certain though, is that the new tax landscape favors those businesses who prioritize robust bookkeeping, optimize their operational and structural decisions, and make investments at the right time. 

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