Information you need to know for Taxes, Small Business, and Life
January 2026
In This Issue
- Getting ready for Tax Season
- Changes for 2026 (including 1099K update)
- 1099s and W2s for your workers
- Check out the new website design (searchable)
Getting ready for Tax Season
It’s January already and it’s time to start gathering records and time for patience. Tons of commercials are all over your media urging you to file now. However…
W2s and 1099s are not due to you until January 31. Brokerage statements rarely are final before February 15th and K1s come in March or later. Filing without all your information is the number one trigger for audits. Be sure you have everything before you file.
How (and when) to send me your documents:
Option 1 – Use the Grass Roots Taxes secure portal. It is on the top menu at GrassRootsTaxes.com. You can upload documents using your phone camera. No scanner needed! Message us if you need your username. If you are new to the portal – use the guest exchange. It all gets to me the same.
Option 2 – Drop off your documents at the office in downtown Springdale. You can drop off 24/7 using the drop slot in the door. Be sure it is in a bag or envelope so it doesn’t scatter when it drops.
***Pro tip*** Do not wait until you have everything. The minute you start getting documents, upload them. I do not magically file without your permission. (I have a video explaining that) I always contact you and review what is missing. The sooner you send me documents and get on my radar, the sooner you will get done.
Changes for 2026
No Tax on Tips – Tips are not magically tax-free money now, especially if you are self-employed. Tips still need to be reported, added to your income, then the deduction is calculated. If you received tips, either as self-employed or as an employee, I need all your tip income. Video for tips
No Tax on Overtime – Again not magically tax-free, but a calculated deduction. I need documentation of overtime worked. This should be on your final paystub for the year. If you are self-employed and billed for overtime, I need that documentation. Video for overtime
No Tax on Car Interest – LOTS of restrictions. Must be a new street legal passenger vehicle (Including motorcycles, Can-Ams, etc). American built, which means it has a VIN starting with 1, 4, 5, or possibly 7. And the loan must have originated in 2025. Video for interest
1099K – Guess what? The Big Beautiful Bill tossed all the new rules for form 1099K. Now you won’t be plagued with forms for sharing expenses and splitting lunch and selling your old couch. The limit is back to $20,000 in total transactions. Sometimes the government gets one right. If you didn’t have $20,000 in card transactions paid to you, you will not be getting a 1099K. And you know I have a video for 1099k
1099s for your workers
If you have workers that aren’t employees, 1099s are due to them and the government by January 31. Start looking at your bookkeeping and payments to others today. If you paid someone over $600 through the year for services for your business, you need to send them a 1099 and file it with the government. Check out my 6 minute series on everything you need to know about sending out 1099s to workers. Or, you can read it in my blog
Website upgrade
Now you can search all my content in one place. All my videos, blogs and other content is searchable on my website. Got a question – Check out GrassRootsTaxes.com.
One More Thing
The strong, silent force behind Grass Roots Taxes, our fantastic Dan, hasn’t taken a day off in 10 years. Dan handles the never-ending tasks of all the company billing and running weekly paychecks for over 20 companies. (And dealing with me everyday…)
In honor of his uncompromising service, we are sending him to Europe to visit with his friends “across the pond” for 2 weeks – without taking the laptop!
Feel free to reply to Dan and wish him well.
Wishing you a fantastic start to 2026 and I’ll see you at Tax Time!