For most business owners, tax season arrives with a familiar sense of dread: the nagging worry that something’s been overlooked, the last-minute hunt for missing documents, the uncertainty about whether you’re leaving money on the table. But it doesn’t have to be that way. With a little preparation and the right partner, you can approach tax season with confidence—and maybe even find opportunities you didn’t know existed.
Here’s what you need to know to stay ahead this tax season.
Start with the basics: gathering your documentation
Tax season is mostly about documentation. If you can gather what’s needed early, the rest of the process tends to fall into place.
You’ll need your Social Security number, address, and details for any dependents. Collect documents for all income sources: W-2s from employers, 1099s for contract work and investment income, K-1s from partnerships or S corporations, and brokerage statements showing investment activity.
For above-the-line deductions, gather IRA and HSA contribution statements and any student loan interest documentation. If you’re itemizing deductions, compile your mortgage interest statement, property tax payments, state and local tax payments, charitable donation receipts, and medical expense records.
Don’t forget health insurance documentation if you’re self-employed or purchased coverage through the marketplace. Collect records for childcare expenses, education costs, and any expenditures on energy-efficient home improvements.
Finally, note any major life events that occurred during the year: births, deaths, marriage or divorce, sale of a home, sale of a business, or significant changes in income. These events often have tax consequences that require specific attention.
Be patient with late or corrected forms
Once you have your paperwork together, the next step is knowing when to file. It’s tempting to file early and check taxes off your list, but sometimes that can create more problems than it solves.
This is especially true if you have investments or receive K-1s from partnerships. Some custodians don’t issue 1099s until mid-February or later. And even then, corrected forms may show up weeks after the originals.
While early organization is essential, it’s wise to wait until everything is in before filing. That way, you avoid the hassle and expense of filing an amended return due to late or revised documents. If you’re not sure whether to expect additional forms, reach out to us—we can help you determine whether you have everything you need.
Don’t miss these overlooked deductions and credits
Tax season is when easy wins are often missed. Let’s make sure you’re capturing everything available to you.
If you’re self-employed and paying for your own health insurance, those premiums are likely deductible. Health Savings Account contributions are another overlooked tool for reducing taxable income. Childcare expenses, educational costs, and charitable donations can all provide tax relief.
If you made retirement contributions to a SEP IRA, solo 401(k), or traditional IRA, those may be deductible depending on your income and the type of plan. Even if you haven’t claimed these deductions in past years, it’s worth revisiting them now. Tax laws change, and so does life.
We recommend reviewing your situation with us before finalizing your return. We’ve seen countless situations where clients missed deductions simply because they didn’t know they qualified or didn’t have the right documentation prepared.
New deductions under the One Big Beautiful Bill Act
The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduced several new deductions that could meaningfully reduce your taxable income this year. Here’s what you need to know.
Tip income. Workers in tipped occupations may deduct qualified tips from federal taxable income, up to $25,000 for married couples filing jointly, with lower limits for other filers. This deduction phases out for taxpayers with modified adjusted gross income above $150,000 (or $300,000 for joint filers). Strict eligibility criteria apply, so verify you meet the requirements before claiming it.
Overtime pay. The premium portion of overtime compensation—such as the “half” in time-and-a-half—may now be deductible, up to $12,500 annually ($25,000 for joint filers). This applies to overtime required under the Fair Labor Standards Act and is subject to the same income phase-outs as the tip deduction.
Car loan interest. Individuals may now deduct up to $10,000 in interest paid on loans used to purchase a new vehicle for personal use. The vehicle must be new, and the deduction phases out for taxpayers with modified adjusted gross income above $100,000 ($200,000 for joint filers). Lease payments do not qualify.
Additional deduction for seniors. Individuals age 65 and older may claim an additional $6,000 deduction on top of the standard deduction ($12,000 for married couples where both spouses qualify). This begins to phase out for taxpayers with modified adjusted gross income above $75,000, or $150,000 for joint filers.
These provisions have detailed requirements, income limits, and documentation standards. Working with us ensures you’re both complying with the latest rules and making the most of every available deduction.
If you run a business, don’t overlook these tasks
If you own a business, there are additional steps to keep in mind—and getting them right can save significant time and money.
File your business return first if you’re an S corporation or partnership. Your business return typically needs to be filed before your personal return because the K-1 that reports your share of the company’s income, deductions, and credits flows through to your individual tax return. Delays in filing your business return can delay the rest of your tax process.
Make sure your books are up to date, or that your bookkeeper has everything needed to close out the year. That means reconciling bank accounts, categorizing expenses, and flagging any unusual income or reimbursements. If you’re working with our outsourced accounting team, we’ll handle this for you—but if you’re managing your own books, now is the time to make sure everything is current.
If you paid independent contractors more than $600 last year, you’re likely required to send them a 1099-NEC by February 2nd. Missing that deadline can result in penalties, so confirm that those forms have been issued.
It’s also a good time to review your mileage logs, home office expenses, and any business-related travel or meals you may have paid for out of pocket. Better records mean more deductions—and more confidence if your return is ever audited.
For our construction clients, make sure your work-in-progress schedules are accurate and your job costing is up to date. For restaurant and hospitality operators, verify that your POS systems properly integrated with your accounting software and that tip reporting is complete. These industry-specific details matter when it comes to accurate tax reporting.
Understand your deadlines—and what an extension really means
As you organize your documents, keep an eye on key deadlines. For most taxpayers, the filing deadline this year is April 15, 2026. Some states may have different dates, especially if disaster declarations are involved.
If you’re not ready to file by then, you can request an extension—but remember: an extension gives you more time to file, not more time to pay. If you expect to owe taxes and don’t make a payment by April 15, interest and penalties can still apply.
That’s why we often recommend sending in an estimated payment with your extension rather than underestimating and coming up short. We can help you calculate what you’re likely to owe so you can avoid surprises later.
Why professional guidance matters
Even seemingly simple returns can involve layers of complexity that are easy to miss. If you’ve experienced a major life event—a marriage, divorce, inheritance, or the sale of a business—those changes often have tax consequences that aren’t always obvious upfront.
Equity compensation like stock options and RSUs, cryptocurrency transactions, and passive income from K-1s are all examples where thorough documentation and nuanced reporting are critical. Multi-state income and prior IRS notices also call for a closer look.
Tax software can’t always spot issues—or opportunities—that an experienced CPA will catch. And by the time errors show up, they can be expensive to fix.
At RMG, we don’t just prepare tax returns—we become an extension of your business, helping you navigate regulatory changes, identify planning opportunities, and ensure you’re positioned for success. We work with you year-round, not just during tax season, so we know your business and can provide guidance that’s specific to your situation.
Our construction clients benefit from our deep understanding of percentage-of-completion accounting, job costing, and bonding relationships. Our hospitality clients appreciate that we understand POS integration, tip reporting, and multi-location operations. Our waste management, manufacturing, real estate, and transportation clients know we speak their language and understand their unique challenges.
Bringing us in early helps ensure you’re complying with the latest rules, optimizing your outcome, and avoiding unpleasant surprises down the road.
A little preparation goes a long way
The more organized you are now, the less time you’ll spend hunting down paperwork or worrying about what you might have missed. Filing on time and accurately reduces your chances of missing deductions, triggering penalties, or rushing decisions that can’t be undone later.
If you’re not sure whether your current approach is still serving you well, this is a great time to ask. We’re here to help—not just with tax preparation, but with proactive planning that positions you for growth and minimizes your tax burden.
For personalized guidance tailored to your business and industry, contact RMG. We’re happy to help you through this tax season and beyond.
For most people, tax season brings a quiet panic about what they might be forgetting and a last-minute rush to pull everything together before the deadline. But it doesn’t have to be that way. With just a little preparation, you can avoid surprises, minimize your tax bill, and make the entire process smoother for both you and your advisor.
Here are a few simple ways to stay ahead this year.
Start with the basics: what documents you’ll need
First things first: tax season is mostly about documentation. If you can gather what’s needed early, the rest of the process tends to fall into place.
You’ll need your Social Security number, address, and details for any dependents. Collect documents for all income, which include W-2s, 1099s, K-1s, and brokerage statements. For above-the-line deductions, collect IRA and HSA contribution statements and any student loan interest. For itemized deductions, gather your mortgage statement, property tax payments, state and local tax payments, charitable donations, and all medical expenses. Don’t forget to compile health insurance details if you’re self-employed or bought coverage through the marketplace. Collect childcare expenses, education expenses, and any expenditures on energy efficiency. Finally, note any major events that may have occurred, such as a birth, death, change in marital status, sale of a home, or sale of a business.
Be patient with late or corrected forms
Once you have your paperwork together, the next step is knowing when to use it. It’s tempting to file early and check taxes off your list, but sometimes that can cause more harm than good. This is especially true if you have investments or receive K-1s from partnerships. Some custodians don’t have to issue 1099s until mid-February or later. And even then, corrected forms may show up weeks later.
While early organization is key, it’s wise to wait until everything is in before filing. That way, you avoid the hassle of filing an amended return due to late or revised documents.
Don’t miss these overlooked deductions and credits
This is the time of year when easy wins are often missed.
If you’re self-employed and paying for your own health insurance, those premiums are likely deductible. Health Savings Account contributions are another overlooked tool for reducing taxable income. Childcare expenses, educational costs, and charitable donations can all provide added tax relief.
If you made retirement contributions to a SEP IRA, solo 401(k), or traditional IRA, those may be deductible as well, depending on your income and the type of plan. Even if you haven’t claimed these deductions in past years, it’s worth revisiting them now. Tax laws change, and so does life.
New deductions under the One Big Beautiful Bill Act
The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduced several new deductions that could meaningfully reduce your taxable income this year. Here’s what to know.
Tip income. Workers in tipped occupations may deduct qualified tips from federal taxable income, up to $25,000 for married couples filing jointly, with lower limits for other filers. This deduction phases out for taxpayers with modified adjusted gross income above $150,000 (or $300,000 for joint filers). Strict eligibility criteria apply, so verify you meet the requirements before claiming it.
Overtime pay. The premium portion of overtime compensation—such as the “half” in time-and-a-half—may now be deductible, up to $12,500 annually ($25,000 for joint filers). This applies to overtime required under the Fair Labor Standards Act and is subject to the same income phase-outs as the tip deduction.
Car loan interest. Individuals may now deduct up to $10,000 in interest paid on loans used to purchase a new vehicle for personal use. The vehicle must be new, and the deduction phases out for taxpayers with modified adjusted gross income above $100,000 ($200,000 for joint filers). Lease payments do not qualify.
Additional deduction for seniors. Individuals age 65 and older may claim an additional $6,000 deduction on top of the standard deduction ($12,000 for married couples where both spouses qualify). This begins to phase out for taxpayers with modified adjusted gross income above $75,000, or $150,000 for joint filers.
These provisions have detailed requirements, income limits, and documentation standards. Working with a qualified tax advisor is the best way to ensure you’re both complying with the latest rules and making the most of every available deduction.
If you run a business, don’t overlook these tasks
If you own a business, there are a few extra steps to keep in mind.
File your business return first if you’re an S corporation or partnership. Your business return typically needs to be filed before your personal return, because the K-1 that reports your share of the company’s income, deductions, and credits flows through to your individual tax return. Delays in filing your business return can delay the rest of your tax process.
Make sure your books are up to date, or that your bookkeeper has everything they need to close out the year. That means reconciling bank accounts, categorizing expenses, and flagging any unusual income or reimbursements.
If you paid independent contractors more than $600 last year, you’re likely required to send them a 1099-NEC by February 2nd. Missing that deadline can result in penalties, so confirm that those forms have been issued.
It’s also a good time to review your mileage logs, home office expenses, and any business-related travel or meals you may have paid for out of pocket. Better records mean more deductions—and more confidence if your return is ever audited.
Understand your deadlines – and what an extension really means
As you organize your documents, keep an eye on key deadlines. For most taxpayers, the filing deadline this year is April 15, 2026. Some states may have different dates, especially if disaster declarations are involved.
If you’re not ready to file by then, you can request an extension—but remember: an extension gives you more time to file, not more time to pay. If you expect to owe taxes and don’t make a payment by April 15, interest and penalties can still apply. That’s why it’s often better to send in an estimated payment with your extension rather than underestimate and come up short.
Why professional guidance matters
Even seemingly simple returns can involve layers of complexity. If you’ve experienced a major life event—a marriage, divorce, inheritance, or the sale of a business—those changes often have tax consequences that aren’t always obvious upfront.
Equity compensation like stock options and RSUs, cryptocurrency transactions, and passive income from K-1s are all examples where thorough documentation and nuanced reporting are critical. Multi-state income and prior IRS notices also call for a closer look.
Tax software can’t always spot issues—or opportunities—that an experienced CPA will catch. And by the time errors show up, they can be expensive to fix. Bringing in a professional early helps ensure you’re complying with the latest rules, optimizing your outcome, and avoiding unpleasant surprises down the road.
A little preparation goes a long way
The more organized you are now, the less time you’ll spend hunting down paperwork or worrying about what you might have missed. Filing on time and accurately reduces your chances of missing deductions, triggering penalties, or rushing decisions that can’t be undone later.
If you’re not sure whether your current process is still serving you well, this is a great time to ask. A little help now can prevent a lot of cleanup later.
For more personalized guidance, please contact our office. We’re happy to help through this tax season and beyond.
Let’s Chat
Call us at (973) 712-5000 or fill out the form below and we’ll contact you to discuss your specific situation.
*The materials provided in the Insights section are for general informational purposes only and may not reflect the most current legal, tax, or financial developments. While we strive to ensure accuracy at the time of publication, RMG CPA LLC does not guarantee that the information remains up-to-date or free from error. We recommend consulting directly with a RMG CPA LLC team member to confirm the applicability and relevance of any information to your specific situation.