Depending on the type of work performed, number of owners, number of employees, projected income, employee benefit offerings, liability protection and succession plans, each has pros and cons.  We will discuss these and other important matters to help you determine the best fit for you.

• An extension is only an extension of time to file and not an extension of time to pay.  We will assist in filing an extension and determining if a payment should be made, and how much to pay with the extension. As long as you don’t owe additional tax when filing during the extended period, generally no penalties are assessed.

• Most extensions filed provide an additional 6 months to file, but generally only one extension is permitted.

If your dependent child is a NY State resident, then they must file a tax return if their annual income exceeds $3,100. However, if a dependent has more than $1,300 of income from investments (interest, dividends and capital gains), then they must file a return even if total income is less than $3,100.

• If you are single and half of your Social Security benefits plus your other income exceeds $25,000, then some of your benefits may be taxable.  If you are married and half of your combined Social Security benefits plus your combined other income exceeds $34,000, then some of your benefits may be taxable.
• The current age that you become subject to the RMD requirements is age 73.

• If you are fully self-employed or a part-time independent contractor, you will probably want to make estimated tax payments to avoid penalties and a surprise tax bill in April.  Like it sounds, you have to estimate what your income will be, figure the tax on the estimated income and make quarterly payments. Generally, if you pay at least 90% of your current year tax through quarterly tax payments, you can pay the remaining 10% in April without penalty. If your income fluctuates, we can work with you throughout the year to develop income and tax projections and adjust quarterly payments accordingly.

• There are several strategies to reduce your tax bill such as maximizing deductions and credits, contributing to retirement accounts, and taking advantage of tax-efficient investments.  We can review your financial situation to identify specific opportunities for tax savings.

Individual Tax Law Changes
The OBBBA permanently extended the lower individual income tax rates introduced by TCJA, keeping the seven-bracket structure with rates ranging from 10% to 37%. It also maintained the higher standard deduction, raising it to $15,750 for single filers and $31,500 for joint filers in 2026, while continuing to eliminate personal exemptions. The Child Tax Credit was increased to $2,200 per child and the $500 credit for other dependents was retained. Additionally, the SALT deduction cap was raised from $10,000 to $40,000 for 2025, providing relief for taxpayers in high-tax states. Other notable provisions include new deductions for seniors and certain work-related expenses like tips and overtime pay, and a deduction for qualifying car loan interest. Effective 2026, non-itemizers can deduct cash charitable contributions of up to $1,000 ($2,000 if married filing jointly).