Featured Articles for January 2026

 
Can You Claim a Tax Deduction for Tips or Overtime Income?
If you received tips or overtime pay in 2025, you may be eligible for a new deduction when you file your income tax return. Both deductions can be claimed whether or not you itemize deductions. But various rules and limits apply. Also be aware that such income may still be fully taxable for state and local income tax purposes. And federal payroll taxes still apply to tips and overtime income you deduct for federal income tax purposes.

Businesses: Act Soon to Take Advantage of Clean Energy Tax Incentives
While legislation signed into law in 2025 extends or enhances many tax breaks for businesses, it ends some clean energy tax incentives. Fortunately, your business may still benefit from certain clean energy breaks if it acts in the first half of 2026.

Make Smart Choices With a Sudden Windfall
An unexpected influx of money (such as from an inheritance, bonus, legal settlement or lottery win) can feel exciting and full of possibility. But without a clear plan, that financial good fortune might not last as long as you’d hoped.

Tax Tips

2026 Tax Law Changes for Individuals
Heavy Tax Breaks for Heavy Business Vehicles
More Taxpayers May Qualify for the Casualty Loss Deduction
 

QuickBooks Tips

How Progress Invoicing Can Improve Your Cash Flow
 

Tax Due Dates

January 15

Employers: Deposit nonpayroll withheld income tax for December 2025 if the monthly deposit rule applies.
Individuals: Pay the fourth installment of 2025 estimated taxes (Form 1040-ES) if not paying income tax through withholding or not paying sufficient income tax through withholding.

February 2

Employers: File 2025 Form W-2 (Copy A) and transmittal Form W-3 with the Social Security Administration.
Employers: File a 2025 return for federal unemployment taxes (Form 940) and pay any tax due if all the associated taxes weren’t deposited on time and in full.
Employers: Report Social Security and Medicare taxes and income tax withholding for the fourth quarter of 2025 (Form 941) if all of the associated taxes due weren’t deposited on time and in full.
Employers: Provide 2025 Form W-2 to employees.
Businesses: Provide 2025 Form 1098, Form 1099-MISC (except for those with a February 18 deadline), Form 1099-NEC and Form W-2G to recipients.
Individuals: File a 2025 income tax return (Form 1040 or Form 1040-SR) and pay the tax to avoid penalties for underpaying the January 15 installment of estimated taxes.

February 10

Employers: File a 2025 return for federal unemployment taxes (Form 940) if all associated taxes due were deposited on time and in full.
Employers: Report Social Security and Medicare taxes and income tax withholding for the fourth quarter of 2025 (Form 941) if all associated taxes due were deposited on time and in full.
Individuals: Report January tip income of $20 or more to employers (Form 4070).
 

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100 Erdman Way
Leominster, MA 01453