03/05/2026
To My Small Business Owners
High Earners
1099 Contractors
Door Dash/Spark drivers
Self employed 📊
Before filing your taxes, make sure you’ve checked these IRS-important items:
✔️ Income
• Have you reviewed all invoices and income records?
• Did you report income from cash, checks, Zelle, Cash App, Venmo, PayPal, Stripe, etc.?
(The IRS considers all business income taxable, even if no 1099 was issued.)
✔️ Expenses
• Have you separated business and personal expenses?
• Do you have receipts, invoices, or bank statements to support each expense?
• Third-party payment processing fees (PayPal, Square, Stripe, etc.) are deductible.
• Business bank account fees are deductible.
• Licenses, permits, and LLC formation fees are deductible (some may be capitalized depending on timing).
• Office supplies, software, advertising, and professional fees may qualify if they are ordinary and necessary for your business.
✔️ Contractors / Workers (1099 Reminder)
• Did you hire a contractor or independent worker?
• If you paid $600 or more to a non-employee during the year, you must issue a Form 1099-NEC.
• 1099 forms must be provided to the contractor AND submitted to the IRS by January 31st.
• Make sure you collected a W-9 before paying your contractor to avoid delays or penalties.
✔️ Vehicle Use
• Are you claiming mileage OR actual vehicle expenses?
👉🏽 You can only choose one method per vehicle per year, not both.
• Mileage must be supported by a log showing dates, purpose, and miles driven.
✔️ Records & Compliance
• Keep records for at least 3 years (longer if income was underreported).
• If you work from home, a home office deduction may apply if the space is used regularly and exclusively for business.
• Self-employed individuals are responsible for self-employment tax (Social Security & Medicare).
📌 IRS Reminder:
If you can’t prove it, don’t claim it. Proper documentation protects you in case of an audit.
I know you must be dreading filing, however, ignoring it will only make the noises in your head louder😅
Call us, make an appointment, let’s see where you are and what you need to get, and go from there.
No need to panic.
Let us do the work for you!
We have until April 15th if we don’t submit an Extension.
If you know you will not be ready by then, reach out to the office and file your extension expeditiously!
Maria Valdivia
[email protected]
803-762-8295