Nolan Accounting Center ClientLine Newsletter

Nolan Accounting Center

4262 South 108th Street

Greenfield, WI 53228

Phone: 414-425-5690

Fax: 414-425-2373

February 2026

Save for Retirement, Reduce Your Tax Bills

One simple step can lower your tax bill and boost your retirement savings. The actions you take today to prepare for retirement will influence your financial situation in later years. Contributing to an eligible retirement account by the April 15, 2025, income tax deadline will reduce your 2025 taxable income by the amount you contribute.

Deductions and Credits

Small businesses have unique characteristics and needs. Hence, the IRS has some tax provisions that are designed for or may be particularly beneficial to smaller companies. Let's take a look one in particular.

Tax Credits For New Retirement Plans

Small businesses can significantly benefit from tax incentives that encourage the creation of employee retirement plans. Recent updates show that small business owners starting a new retirement plan can claim a tax credit of up to $5,000 annually for the first three years. This credit offsets the costs of setting up and administering these plans, making it easier for small businesses to provide valuable retirement benefits to their employees.

February 2026 Client Profile

Ellen, a solo entrepreneur, projects a net profit of $100,000 in her first year. The big question: keep her single-member LLC as a default sole proprietorship or elect S-Corp taxation?

Making Charitable Contributions in 2026

OBBBA introduced several significant changes for individuals who deduct charitable contributions. Starting in 2026, you may deduct itemized charitable contributions if the total exceeds 0.5% of your adjusted gross income (AGI). This change effectively limits the deductibility of smaller contributions, particularly for lower- and middle-income taxpayers.

February 2026 Q and A

Let's talk about single-member LLCs and an S-Corp.

Tax Day is Coming: Tips to Stay Ahead

In 2026, there are some changes to the credits related to families and children, most notably the Child Tax Credit and the Child and Dependent Care Tax Credit. These credits include a phase-out structure based on certain income thresholds.

Can You Claim These Non-Itemized Deductions?

OBBBA also introduced several deductions for 2026 that you can claim in addition to the standard deduction without having to itemize your deductions.

CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.