Two changes specific to 2026
The 1099 threshold went up. For payments made on or after January 1, 2026, you issue Forms 1099-NEC and 1099-MISC when you have paid a vendor $2,000 or more in the calendar year. It was $600 through 2025. The change came from the One Big Beautiful Bill Act, and the threshold is inflation-adjusted starting in 2027. California has adopted the $2,000 figure for the 2026 tax year; a few other states have not, so check any state where you file.
The mileage rate changed mid-year. The business standard mileage rate is 72.5 cents per mile for miles driven January 1 through June 30, 2026, and 76 cents per mile from July 1 through December 31. Mid-year adjustments are rare, and most mileage logs assume a single annual rate. Split your log at June 30 or you will misstate the deduction.
Income records
- Bank statements for every business account, all twelve months, including any account you opened or closed during the year
- Credit card statements for every business card
- Merchant processor summaries (Square, Stripe, PayPal, or similar) reconciled to deposits
- Any Forms 1099-NEC, 1099-MISC or 1099-K you received
- Sales records or invoices supporting your total revenue
- A list of any income received outside those channels, including cash and barter
Income is taxable whether or not a form reports it. The higher 1099 thresholds mean fewer forms will arrive, not that less income counts.
Expense records
- Receipts or statements for major purchases, especially anything over $2,500
- A fixed asset list: what you bought, when, and what you paid
- Loan statements showing the interest and principal split
- Insurance premiums
- Rent or lease agreements
- Vehicle mileage log, split at June 30 for the two 2026 rates
- Home office measurements and total household utilities, if you claim it
- Professional fees, subscriptions, and software
People you paid
- Payroll reports and quarterly filings, if you have employees
- A signed Form W-9 from every contractor, collected before you paid them where possible
- Contractor payment totals for the calendar year, so you can identify who crossed $2,000
- Owner draws or distributions, separated from business expenses
Collect a W-9 from every contractor regardless of the amount. If a vendor crosses the threshold late in the year and you never got the form, chasing it in January is unpleasant, and a missing or mismatched taxpayer ID can trigger backup withholding.
Books and reconciliation
- Every bank and card account reconciled through December 31
- Uncategorized and "ask my accountant" transactions cleared out
- Year-end profit and loss statement
- Year-end balance sheet
- Accounts receivable aging, with anything genuinely uncollectible identified
- Accounts payable as of December 31
- Inventory count, if you carry it
Entity and prior-year documents
- Last year's filed return
- Formation documents and EIN letter, if this is a first filing with a new preparer
- Any IRS or state notices received during the year, including ones you think were resolved
- Record of estimated tax payments made, with dates and amounts
Dates for the 2026 tax year
| What | When |
|---|---|
| Fourth-quarter 2026 estimated payment | January 15, 2027 |
| W-2s and 1099-NECs to recipients and to the government | February 1, 2027 (January 31 falls on a Sunday) |
| Partnership and S-corporation returns | March 15, 2027 |
| Individual, sole proprietor and C-corporation returns | April 15, 2027 |
| Extended partnership and S-corporation returns | September 15, 2027 |
| Extended individual returns | October 15, 2027 |
An extension extends the time to file, never the time to pay. Tax owed is still due on the original date, and interest runs from there.
If you are a California business
- $800 annual franchise tax. Owed by every LLC organized, registered, or doing business in California, whether or not it made money, paid with Form FTB 3522. Due the 15th day of the 4th month of the taxable year, which is April 15 for calendar-year filers.
- First-year LLCs owe it too. The temporary first-year exemption under Assembly Bill 85 applied only to entities registering on or after January 1, 2021 and before January 1, 2024. It expired. A great deal of material online still says otherwise, so verify against the Franchise Tax Board rather than a search result.
- The separate LLC fee applies once California-source gross receipts reach $250,000. It is based on receipts, not profit, so a low-margin business can owe it in a year it lost money. Estimated with Form FTB 3536, due June 15.
- Form 568 for LLCs, on the same due dates as the corresponding federal return.
- Statement of Information with the Secretary of State, on its own schedule, separate from anything tax-related.