04 Jul 2026 Tax Planning: What Brooklyn Individuals, Freelancers, and Small Businesses Should Watch
2026 Tax Planning: What Brooklyn Individuals, Freelancers, and Small Businesses Should Watch
A practical mid-year overview of recent federal tax and reporting changes, with a focus on recordkeeping, estimated taxes, 1099 reporting, BOI rules, and planning before filing season.
1. The 2026 standard deduction and brackets moved again
The IRS announced 2026 inflation adjustments that apply generally to returns filed in 2027. The standard deduction increased to $32,200 for married couples filing jointly, $16,100 for single taxpayers and married individuals filing separately, and $24,150 for heads of household. Tax brackets were also adjusted, with the 37% top rate beginning above $640,600 for single taxpayers and above $768,700 for married couples filing jointly.
Why this matters: withholding, estimated payments, and year-end planning should be based on current-year numbers, not last year’s assumptions. Freelancers and business owners should revisit estimated tax calculations when income changes materially.
2. 1099-K reporting is still about reporting, not whether income is taxable
Payment apps and online marketplaces can generate Form 1099-K. The IRS currently explains that third-party settlement organizations are required to report payments for goods or services when payments exceed $20,000 and more than 200 transactions, though platforms may issue forms at lower levels.
The important point is that the form is not the tax law itself. If you sell goods or provide services, taxable income generally must be reported whether or not a form arrives. Keep clean records showing gross receipts, refunds, platform fees, cost of goods, mileage, supplies, subcontractors, and other deductible expenses.
3. BOI reporting changed significantly for domestic companies
Beneficial Ownership Information reporting has been one of the most confusing compliance topics for small businesses. FinCEN announced an interim final rule on March 21, 2025 removing the BOI reporting requirement for U.S. companies and U.S. persons, while setting deadlines for foreign reporting companies.
That is a major change, but owners should still keep entity records organized: formation documents, EIN letters, ownership ledgers, operating agreements, addresses, responsible parties, and state filings. Even when a federal filing requirement changes, banks, lenders, tax agencies, and due-diligence processes may still ask for ownership information.
4. Accounting history keeps repeating itself: better records beat year-end cleanup
Modern accounting software changed the mechanics, but the core accounting problem is old: business owners need timely, reliable records before decisions are made. A good bookkeeping system separates business and personal activity, reconciles bank and credit-card accounts monthly, documents deductible expenses, tracks receivables and payables, and keeps payroll and sales-tax obligations visible.
For small businesses, the biggest tax savings often come from consistency rather than last-minute tactics. Monthly books make it easier to plan estimated taxes, choose retirement contributions, evaluate entity structure, support deductions, and respond to IRS or state notices.
5. Practical mid-year checklist
- Recalculate 2026 estimated tax payments using year-to-date profit, not only prior-year safe harbor numbers.
- Download payment-app, marketplace, and merchant-processor reports before platforms archive or reorganize them.
- Reconcile books through June and review uncategorized transactions.
- Separate personal transfers, owner draws, reimbursements, and true business income.
- Review payroll withholding if wages, bonuses, tips, overtime, or household income changed.
- Keep digital-asset transaction records, including cost basis, transfers, fees, and wallet/exchange history.
- Confirm entity information, state registrations, sales-tax accounts, and payroll accounts are current.
6. When to talk to a CPA
Talk to a CPA before a major income event, business launch, entity change, real-estate sale, retirement-plan decision, IRS notice response, or multistate activity. The earlier the conversation happens, the more options are usually available.
Sorry, the comment form is closed at this time.