Year-end planning

    Year-end tax planning for businesses and nonprofits

    What to decide before December 31, while there's still time to act: equipment and depreciation, pass-through entity tax payments, S corp payroll, retirement plans and 1099 prep.

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    • Last reviewed October 4, 2026
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    What should a business do for year-end tax planning?

    Before December 31, a business should project its taxable income, time equipment purchases and placed-in-service dates, decide on Virginia or Maryland pass-through entity tax payments, confirm S corporation owners’ reasonable salary through payroll, consider retirement plan contributions, and collect W-9s for the new $2,000 1099-NEC threshold.

    Year-end checklist for businesses

    1. Project the year. Use books closed through September or October to estimate taxable income, federal and state. Planning starts from real numbers.
    2. Time equipment purchases. Federally, qualified property acquired after January 19, 2025 can be deducted 100% in the year it's placed in service. Section 179 allows up to $2,560,000 for 2026. Property must be in service by December 31, and DC, Virginia and Maryland don't follow federal bonus depreciation. See 2025 tax law changes.
    3. Decide on pass-through entity tax payments. For owners above the federal SALT cap ($40,400 for 2026, reduced for higher incomes), paying state tax at the entity level can lower federal tax. See Virginia PTET and Maryland PTE.
    4. Check S corporation salary. Owner-employees should receive reasonable W-2 compensation through payroll before year end, and 2% shareholders' health insurance belongs on their W-2.
    5. Review retirement plans. Some plans must be set up before year end; others can be funded later. Decide while there's still a choice.
    6. Prepare for 1099s. For payments made in 2026, Form 1099-NEC and 1099-MISC reporting starts at $2,000. Collect W-9s from contractors now so January filings are on time.
    7. Estimated payments. The fourth-quarter federal estimate for individuals is due January 15. Adjust it to the projection to avoid underpayment penalties.
    8. Clean up the books. Reconcile accounts, review receivables you can't collect and confirm fixed asset records so the return starts from clean numbers.

    Year-end checklist for nonprofits

    • Confirm which return you'll file (990, 990-EZ, 990-N or 990-PF) and its due date. Try the Form 990 finder.
    • Track unrelated business income: Form 990-T is required at $1,000 or more of gross UBI.
    • Send written acknowledgments for donations of $250 or more.
    • Confirm state charitable solicitation registrations and renewals are current.
    • If you'll need an audit or review for funders or state law, line up the auditor now. See nonprofit audits.

    Key dates ahead

    DateWhat’s due
    October 15, 2026Extended calendar-year C corporation (1120) and individual returns
    November 16, 2026Extended calendar-year 2025 Form 990 (November 15 is a Sunday)
    December 31, 2026Planning moves for the 2026 tax year
    January 15, 2027Fourth-quarter 2026 estimated tax
    February 1, 2027Forms W-2 and 1099-NEC to recipients and filed (January 31 is a Sunday)
    March 15, 20272026 S corporation (1120-S) and partnership (1065) returns
    April 15, 20272026 C corporation (1120), DC D-30/D-20, Virginia 502PTET, Maryland 510/511
    May 17, 2027Calendar-year 2026 Form 990 (May 15 is a Saturday)
    Add business and nonprofit tax deadlines to your calendar (.ics)

    Expert CPAs. Personal attention.

    Book a year-end planning call before December. We'll project your year and walk through the moves that still count.

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