As we move into the final months of 2026, now is the best time for Arizona small business owners to review their tax situation. Smart year-end planning can reduce your tax bill, improve cash flow, and make next year’s filing season much smoother.
Year-End Tax Planning Checklist
- Review your estimated tax payments
Confirm you have paid enough in federal and Arizona estimated taxes to avoid underpayment penalties. The final payment is due January 15, 2027.
- Maximize retirement contributions
Contribute to a SEP IRA, Solo 401(k), or traditional IRA before the deadline to reduce taxable income.
- Accelerate or defer income and expenses
Decide whether it makes sense to push income into 2027 or accelerate deductible expenses into 2026.
- Claim available Arizona tax credits
Review credits such as the Charitable Tax Credit (Form 321) and School Tuition Organization credits before year-end.
- Review vehicle and home office deductions
Make sure mileage logs and home office records are complete and accurate.
- Evaluate equipment purchases
Consider Section 179 or bonus depreciation for needed business equipment before December 31.
- Check entity structure and reasonable compensation
S-Corp owners should confirm reasonable salary levels and overall structure still make sense.
- Organize your records
Gather bank statements, receipts, 1099s, and payroll records now so you’re ready when tax season begins.
- Review QBI deduction eligibility
Confirm whether your business qualifies for the 20% Qualified Business Income deduction.
- Schedule a year-end planning meeting
Meet with your tax advisor before year-end to identify any final opportunities.
Why Year-End Planning Matters
Waiting until January or February often means missed opportunities. Acting now gives you time to make adjustments while you still can.
Need Help With Your 2026 Year-End Tax Planning?
Vault Financials helps Arizona small business owners and individuals prepare for tax season with clear, practical planning. We’ll review your numbers and help you take advantage of available deductions and credits.
Contact us today to schedule a year-end planning consultation.
Disclaimer: This article is for educational purposes only. Tax rules can change and individual situations vary. Consult a qualified tax professional for advice specific to your situation.