HW & Associates CPA, PLLC · Orlando, FL
The 2026 Small Business Tax Checklist
A working checklist we use with our own clients. Walk through each section before year-end. If anything raises a question, that's exactly what a free consultation is for.
1. Year-End Deduction Sweep
- Section 179 — confirm eligible equipment placed in service by 12/31
- Bonus depreciation — 60% for assets placed in service in 2026
- Vehicle deduction — mileage log OR actual expenses (whichever is higher)
- Home office — exclusive-use square footage documented
- Business meals — 50% deductible; substantiate purpose & attendees
- Travel — itinerary, lodging, transport receipts retained
- Startup costs — up to $5,000 first-year deduction (if applicable)
- Bad debts — written off in the year they became worthless
2. Tax Credits Most Owners Miss
- R&D credit — software, process improvement, product development
- Work Opportunity Tax Credit (WOTC) for qualifying new hires
- Disabled Access Credit for accessibility improvements
- Energy-efficient commercial buildings deduction (179D)
- Employer-provided childcare credit (Section 45F)
- Retirement plan startup costs credit (up to $5,000/year for 3 years)
- Health insurance premium credit (small employers)
3. QBI & Entity Optimization
- Confirm 20% QBI deduction eligibility (taxable income thresholds)
- Review S-corp owner reasonable compensation
- Run S-corp vs LLC comparison if net income exceeds $80K
- Document accountable plan reimbursements for owner expenses
- Solo 401(k) / SEP-IRA contributions maximized
- Defined benefit plan considered if income > $250K
4. Owner Compensation & Retirement
- 2026 401(k) deferral: $23,500 ($31,000 if 50+)
- SEP-IRA: up to 25% of comp, capped at $70,000
- Solo 401(k): employee deferral + employer profit-share
- HSA: $4,300 self / $8,550 family — triple tax-advantaged
- Backdoor Roth IRA eligibility reviewed
5. Documents to Gather Before Filing
- Prior year's federal and state returns
- Trial balance, P&L, and balance sheet from your books
- 1099-NEC issued and received
- W-2s and payroll summary reports
- Mortgage interest (1098), property tax statements
- Investment income (1099-B, 1099-DIV, 1099-INT)
- K-1s from partnerships, S-corps, trusts
- Receipts for charitable contributions over $250
- Asset purchase invoices with dates placed in service
- Auto mileage logs with business purpose
6. Quarterly Estimated Tax Deadlines (2026)
- Q1: April 15, 2026
- Q2: June 15, 2026
- Q3: September 15, 2026
- Q4: January 15, 2027
- Underpayment penalty triggers if < 90% current year OR 110% prior year
7. Recordkeeping & Compliance
- Beneficial Ownership Information (BOI) report filed with FinCEN
- Annual state report / franchise tax filed
- Registered agent confirmed and current
- Separate business bank account & credit card (no commingling)
- Receipts retained for 3 years minimum (7 for property records)