By Dor Israel, CPA — ProAxis Tax & Accounting Services, Hasbrouck Heights
I opened my CPA practice in Hasbrouck Heights earlier this year, after spending my early career in Big Four public accounting. If that experience taught me one thing, it’s this. The tax return you file in April is mostly decided by what you do, or don’t do, between June and December. January is for reporting. June is for planning.
So here’s the mid-year checkup I’d suggest any small business owner in Bergen County run through. It takes about ten minutes with a coffee.
1. Check your estimated taxes — the next federal deadline is June 15
The IRS wants its money during the year, not just in April. If you expect to owe at least $1,000 for 2026, you generally need to make quarterly payments. The remaining federal due dates for 2026 income are June 15, 2026, September 15, 2026, and January 15, 2027.
There’s a useful “safe harbor” here. Pay in at least 90% of this year’s tax or 100% of last year’s total tax, whichever is smaller, and you avoid an underpayment penalty. The 100% rises to 110% if your 2025 adjusted gross income (AGI) topped $150,000. New Jersey has its own quarterly estimated payments too. Don’t forget the state side.
2. The 1099 threshold isn’t $600 anymore
This one is genuinely new, and a lot of owners haven’t heard it yet. For payments made in 2026, the reporting threshold for Form 1099-NEC rose from $600 to $2,000 under last year’s federal tax law. That means fewer forms to file next January.
But don’t drop your W-9 habit. If you pay a contractor without collecting a tax ID first, the rules require you to withhold 24% of the payment. Collecting the W-9 before the first check goes out is far easier than chasing it in January. Forms for 2026 payments are due by February 1, 2027.
3. If you’re buying equipment this year, the write-off rules just got better
The 2025 federal tax law made 100% bonus depreciation permanent for qualified property acquired after January 19, 2025. Separately, the Section 179 expensing limit for tax year 2026 is $2,560,000. In plain English: most equipment, computers, and furniture a small business buys this year can usually be deducted in full, right away.
One caveat worth repeating. A deduction is a discount, not a refund. Buying something you don’t need “to save on taxes” still costs you money.
4. Retirement plans: the limits went up
For 2026, the employee 401(k) deferral limit is $24,500. There’s an extra $8,000 catch-up at age 50 and up, and a larger $11,250 catch-up for those turning 60 to 63 this year. The overall defined-contribution cap is $72,000. The IRA limit is $7,500.
If you’re self-employed with no employees, the timing is friendlier than most people expect. A SEP-IRA for 2026 can be opened and funded as late as your 2027 filing deadline, extensions included. Solo 401(k)s have more moving parts. The employer contribution side is flexible, but the employee-deferral side has tighter timing that depends on your entity type. That one is worth a conversation with your accountant before year-end, not after.
5. Run an S corp or partnership? Ask about the NJ BAIT election
New Jersey’s pass-through entity tax — everyone calls it BAIT — lets eligible S corporations, partnerships, and multi-member LLCs pay New Jersey tax at the entity level. The entity deducts that payment as a business expense on its federal return, and owners who are individuals get a refundable credit on their NJ return. Rates run from 5.675% to 10.9% depending on income.
The election must be made fresh each year, electronically, by the entity’s return due date. It isn’t for everyone. Sole proprietors and single-member LLCs aren’t eligible at all. But for a profitable pass-through, it’s usually worth running the numbers — there’s a free NJ BAIT calculator at proaxiscpa.com if you want to see the math for yourself.
6. Two NJ deadlines that quietly cost people money
Your New Jersey annual report costs $75 and is due by the last day of your formation anniversary month. Miss it two years running and your business can lose its authority to do business in New Jersey — over a parking-ticket-sized fee. Your formation month is on your certificate of formation.
And if you drive for work: the 2026 IRS standard mileage rate is 72.5 cents per mile. At that rate, 5,000 unlogged business miles is a $3,625 deduction left on the table. Your phone can track this for you. Set it up once and stop doing mileage archaeology in April.
7. Get the books current while the year can still be fixed
Most of the moves on this list only work if you know your actual numbers. If the bookkeeping is six months behind, you’re planning blind. December is a terrible time to do surgery on a year’s worth of books. Catch up now. Then read this list again with real data in front of you.
None of this is exotic. It’s mostly calendar discipline, plus knowing which rules changed — and 2026 changed more rules than most years. If something here raised a question about your own situation, bring it to a CPA you trust. Bergen County has plenty of good ones, and yes, my office is in Hasbrouck Heights.
Dor Israel, CPA is the founder of ProAxis Tax & Accounting Services. The firm is a virtual accounting practice based in Hasbrouck Heights serving small businesses across New Jersey, New York, and Pennsylvania. Learn more at https://proaxiscpa.com/.
This article is general information for tax year 2026, not tax advice for any specific situation. Examples are illustrations only and individual results vary. Figures were verified against official IRS and New Jersey state sources as of June 6, 2026.
