Business Tax Filing Season 2026: What’s New, What Matters, and Why Credible Information Counts

As we approach the 2026 business tax filing season, several impactful changes are in play, especially following the passage of Reconciliation Bill H.R. 1.  Here are some of the most significant updates business owners and advisors should know:

• ‍Permanent 100% Bonus Depreciation: Businesses can now permanently claim 100% bonus depreciation on qualified property acquired after January 19, 2025.‍
• 100% Depreciation Election for Real Property Used for Producing Tangible Personal Property: A 100% depreciation deduction may be elected for qualified production property (QPP). QPP is nonresidential real property where tangible personal property is manufactured, produced, or refined.  QPP construction must start between January 20, 2025, and December 31, 2028; and the property must be placed in service before January 1, 2031.
• ‍Section 179 Expensing Limits Increased: The expensing limit jumps to $2,500,000 with a phase-out threshold of $4,000,000 for property place in service after 2024, both indexed for inflation.‍
• Qualified Business Income (QBI) Deduction Expanded and Made Permanent: The QBI deduction is now permanent, with higher phase-in thresholds and minimum deduction for active QBI.  QBI allows eligible taxpayers to deduct up to 20% of their qualified business income, subject to limitations and thresholds.‍
• Permanent Excess Business Loss Limitation: The limitation on excess business losses for non-corporate taxpayers is now permanent, restricting the ability to offset nonbusiness income with business losses.‍
• Immediate Expensing for Domestic Research and Experimental Expensing: Businesses can now fully expense all domestic research and experimental (R&E) expenditures in the year incurred.  This is a permanent reversal of the Tax Cuts and Jobs Act (TCJA) rule that required these costs to be capitalized and amortized over five years.‍
• Reporting Thresholds for 1099s Increased: The reporting thresholds for Forms 1099-NEC and 1099-MISC rise from $600 to $2,000 for payments made after 2025, with future inflation adjustments.‍
• Payroll and Wage Reporting Changes: New codes and fields on Forms W-2 will reflect “No Tax on Tips” and “No Tax on Overtime” provisions for 2026

Why Source Credibility Matters More Than Ever

With so many changes, it’s critical to rely on credible, authoritative sources for tax information.  The IRS has repeatedly warned about the dangers of following tax advice found on social media.  In fact, the 2025 “Dirty Dozen” list highlights “bad social media advice” as a top risk, noting that inaccurate or fraudulent tax schemes are often promoted online.  These can lead to identity theft, audits, and severe penalties.

The IRS is actively scrutinizing returns that claim credits or deductions promoted in these schemes and encourages everyone to report suspicious activity.  Remember: If it sounds too good to be true, it probably is.

The 2026 tax season brings significant changes and opportunities.  Always consult trusted, professional sources and stay alert to misinformation.