Most people think about taxes twice a year: in April when the return is due, and in late December when someone tells them to “buy something for the business.” By then, a lot of the best options are already gone.

Many year-end tax moves need paperwork, a plan document, a payroll change, or a delivery date. None of that happens in the last week of December, when banks, vendors, and plan providers are running on holiday schedules. October gives you about ten weeks to run the numbers, make decisions, and still get everything done before December 31.

Here’s what to start now, whether you run a business in Vero Beach or Port St. Lucie or you’re planning for your household. Florida doesn’t have a personal income tax, so for most individuals and pass-through businesses, everything below is about your federal return.

Business moves that need lead time

Retirement plan contributions

For 2026, you can defer up to $24,500 into a 401(k). If you’re 50 or older, you can add another $8,000, and if you’re 60 to 63, the catch-up goes up to $11,250. Employee deferrals have to come out of 2026 paychecks, so if you want to max out, your payroll needs to be set up for it before your last pay run of the year. That’s a November job, not a December 31 job.

If you’re a sole proprietor with no employees other than your spouse and you’ve never had a plan, you have more time than you used to. Under SECURE 2.0, you can set up a solo 401(k) after year-end, as late as your tax return due date (not counting extensions), and still make employee deferrals for that first year. This doesn’t apply to S corporation owners, whose deferrals have to come out of W-2 paychecks during the year. If you have employees and want a safe harbor 401(k), the timing is tighter. A new safe harbor plan generally has to start by October 1 to count for that year, so planning now is really planning for 2027.

Owner pay for S corporations

If your business is an S corporation, the salary you pay yourself affects your payroll taxes, your retirement contributions, and your qualified business income deduction. If your salary needs to go up or a year-end bonus makes sense, it has to run through payroll before December 31. Figuring that out in October leaves time to run the numbers both ways.

Equipment and vehicle purchases

Businesses can expense up to $2,560,000 of equipment in 2026 under Section 179, and 100% bonus depreciation is back for property acquired and placed in service after January 19, 2025. The catch is “placed in service.” The equipment has to be delivered and ready to use by December 31. A truck or machine ordered in mid-December that shows up in January doesn’t count for 2026. If you’re planning a purchase, order it now.

Estimated taxes and withholding

The fourth-quarter estimated payment for 2026 is due January 15, 2027. October is a good time to compare what you’ve paid so far against what you’ll likely owe. If you also get a paycheck, you can raise your withholding for the rest of the year. The IRS treats withholding as if it was paid evenly throughout the year, which can help you avoid an underpayment penalty even if you catch the gap late.

Contractor paperwork

Starting with payments made in 2026, you only need to file a Form 1099-NEC for a contractor you paid $2,000 or more during the year, up from $600. You still need a Form W-9 from every contractor. Collect any missing ones now so you aren’t chasing them in January.

Moves for individuals and families

Charitable giving under the new rules

The rules for charitable deductions changed in 2026, and they’re worth reviewing before you write any year-end checks.

If you take the standard deduction ($16,100 for single filers and $32,200 for married couples filing jointly in 2026), you can now deduct up to $1,000 of cash gifts to charity, or $2,000 on a joint return. The gift has to go directly to a public charity. Gifts to donor-advised funds don’t count.

If you itemize, only the part of your charitable giving above 0.5% of your adjusted gross income is deductible. On $200,000 of income, the first $1,000 of gifts gets no deduction. For some families, it makes sense to “bunch” two years of giving into one year so they itemize that year and take the standard deduction the next. That decision depends on your full picture, so it’s better made in October than on December 30.

If you’re 70½ or older, you can give from your IRA through a qualified charitable distribution. The money has to go directly from the IRA to the charity, there’s an annual limit, and donor-advised funds don’t qualify. The gift isn’t counted as income, and it can count toward your required minimum distribution.

Retirement distributions and Roth conversions

If you’re 73 or older, your required minimum distribution for 2026 generally has to come out by December 31. The one exception is your very first required distribution, which can wait until April 1 of the following year, though that means taking two distributions in one year. If you’re thinking about converting part of a traditional IRA to a Roth, that also has to be done by December 31 to count for 2026. Both are easier to plan when you know roughly what your income will be for the year, and by October you usually do.

Investment gains and losses

If you have investments that are down, selling them before year-end can offset gains you’ve already taken. Watch the wash-sale rule: if you buy the same or a substantially identical investment within 30 days before or after the sale, the loss is disallowed. Starting in November gives you room to sell, wait, and rebuy before the year ends.

Contributions that can wait (but shouldn’t be forgotten)

Some contributions for 2026 can be made up to the April 2027 filing deadline:

  • IRA contributions: up to $7,500, plus $1,100 if you’re 50 or older
  • HSA contributions: up to $4,400 for self-only coverage or $8,750 for family coverage, plus $1,000 if you’re 55 or older

You don’t have to rush these, but put them on the list so they don’t slip past April.

A simple October to December plan

WhenWhat to do
OctoberGet your books current through September. Meet with your tax preparer to project your 2026 income and tax. Decide on equipment purchases, retirement contributions, and owner pay.
NovemberPlace equipment orders. Adjust payroll for retirement deferrals or a year-end bonus. Review investments for losses to harvest. Collect missing W-9s.
DecemberConfirm equipment is delivered and in use. Run final payroll. Make charitable gifts, take required distributions, and finish any Roth conversion by December 31.
JanuaryPay the fourth-quarter estimate by January 15, 2027. Send W-2s and 1099-NECs by February 1, 2027, since January 31 falls on a Sunday.

What to bring to a planning meeting

  • Your profit and loss statement and balance sheet through September
  • Pay stubs or payroll reports showing year-to-date wages and withholding
  • Estimated tax payments you’ve made so far this year
  • Your 2025 tax return
  • Any big changes this year: a new business, a sale of property, a new baby, a marriage, or a retirement
  • Planned purchases or projects for the rest of the year

Frequently asked questions

Is it too late to do year-end tax planning in December?
Not entirely, but your options shrink. Moves like equipment purchases, payroll changes, and retirement deferrals take weeks to set up. Starting in October gives you time to do them right.

Do I need to buy equipment before December 31 to deduct it this year?
The equipment has to be placed in service, meaning delivered and ready to use, by December 31. Paying for it isn’t enough.

When is my fourth-quarter estimated tax payment due?
The fourth-quarter estimate for the 2026 tax year is due January 15, 2027.

Do I still need to send 1099s to contractors?
For payments made in 2026, you only need to file Form 1099-NEC for contractors you paid $2,000 or more during the year.

Does Florida have a state income tax?
Not for individuals. Florida doesn’t tax personal income, so year-end planning for most Florida residents and pass-through businesses is about the federal return. Florida does have a corporate income tax for C corporations.

Start your year-end plan with BDJ Financials

Brian Jorgensen, Enrolled Agent, helps individuals and business owners in Vero Beach and across the Treasure Coast plan ahead instead of scrambling in December. We can project your 2026 tax, walk through which of these moves fit your situation, and handle the bookkeeping and payroll changes that go with them. Contact BDJ Financials to set up a year-end planning meeting, or see our tax services.

This article reflects federal tax law as of October 2026. Everyone’s situation is different, so talk with a tax professional before making any of these moves.

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