Here’s what HIVE AI had to say about “What’s new for small business owners in 2026 filings?”:
First, clarify what “2026 filings” means
As of today (March 27, 2026), the 2026 filing season generally refers to filing 2025 federal returns (due April 15, 2026 for most calendar-year individuals, including Schedule C filers).
Below are (1) what’s new on 2025 returns filed in 2026, and (2) changes that start for 2026 activity/2026 tax year (generally affecting what you do during 2026 and/or the return filed in 2027).
What’s new on 2025 returns you file in 2026 (Schedule C / small business owners)
- Higher standard mileage rate for business use of a vehicle: 70 cents per mile for 2025. 2
- Higher Social Security wage base for self-employment tax: maximum net earnings subject to the Social Security part of SE tax is $176,100 for 2025. 2
- New above-the-line deductions not taken on Schedule C: starting in 2025, there are deductions for qualified overtime (up to $12,500 or $25,000 MFJ) and qualified tips (up to $25,000), claimed on Schedule 1-A (Form 1040), not Schedule C. 2
- Domestic research and experimental expenditures: beginning in 2025, Pub. 334 indicates you can currently deduct domestic research and experimental expenditures or elect to capitalize and amortize over 60+ months. 2
- Research credit (Form 6765) reporting: Section G (business component information) is optional for tax year 2025 (processing year 2026), but it is expected to become mandatory for tax years beginning after 2025 (tax year 2026 and later), subject to guidelines/exceptions described by the IRS. 3 4
Changes that begin in 2026 (affecting what you do during 2026 and/or your 2026 return filed in 2027)
Pub. 334’s “What’s New for 2026” highlights several items that start in 2026:
- Standard mileage rate increases to 72.5 cents per mile for 2026. 2
- Maximum net earnings subject to the Social Security part of self-employment tax increases to $184,500 for 2026. 2
- Information reporting threshold for certain payees: for reportable payments made after December 31, 2025, the threshold increases from $600 to $2,000 (and ties in to backup withholding threshold changes). 1
- Excess business loss limitation: Pub. 334 states this limitation is made permanent and the threshold becomes inflation-indexed for tax years beginning after 2025 (see Form 461 instructions). 2
- Qualified business income (QBI) deduction: Pub. 334 states the 20% QBI deduction is made permanent for qualified active trades or businesses and the income thresholds for limitations increase. 2
One more “2026” timing item some businesses watch
- Section 179D energy efficient commercial building deduction (Form 7205): Pub. 334 notes legislation eliminating the deduction for new energy efficient commercial buildings for property beginning construction after June 30, 2026. 2
Sources
1 – One Big Beautiful Bill Act Sec. 70433. Increase in threshold for requiring information reporting with respect to certain payees
2 – Publication 334 (2025), Tax Guide for Small Business
3 – Instructions for Form 6765 (12/2025)
4 – IRS extends the period for feedback on Form 6765
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