The new tax law is settled. The value now isn't in knowing what changed — it's in acting on it before December 31. Taxes aren't a once-a-year event, and for owner-operators the difference between a good outcome and a missed one is almost always decided in the months before you file, not when you sit down to prepare the return. Here are three moves worth making this year.

1. Right-size your S-corp salary

If you run an S-corporation, your shareholder salary is doing two jobs at once, and the 2026 rules raise the stakes on getting it right.

First, it has to be reasonable compensation for the work you actually do — that's a long-standing IRS requirement, not optional. Second, your W-2 wages directly affect your §199A qualified business income deduction once your income climbs past the threshold (now $201,750 for single filers and $403,500 for joint filers in 2026), where a wage-based limit phases in. Set your salary too low and you can cap your own deduction; set it without a plan and you may overpay payroll taxes. With §199A now permanent, this is a calculation worth running deliberately every year — and your salary is also what makes the next move possible.

2. Fund a Solo 401(k) or SEP — and set it up in time

A retirement plan is one of the largest deductions an owner-operator controls. A Solo 401(k) lets you contribute as both employee (a salary deferral) and employer (a profit-sharing contribution), which can add up to a substantial deduction against this year's income.

Timing is the catch most people miss: to make employee deferrals for 2026, the plan generally must be established before the year ends, even if you fund it later. Miss the setup window and you lose the deferral side entirely. If you've been meaning to open one — or you're still using a plan that no longer fits your income — this is the year to handle it while there's still runway.

3. Get your estimated taxes right

This is where owner-operators most often get surprised. If your income shifted this year — a stronger year, a new rental, larger distributions, or the new deductions changing your liability — your old estimated payments may no longer match what you'll owe, and the underpayment penalty under §6654 doesn't care that you meant well.

The fix is to project your year now, while there's still time to adjust the remaining payments and lock in a safe harbor, rather than discovering the gap in April. This is exactly the kind of mid-year check that keeps tax season boring in the best way.

A couple more worth a look

If you're buying equipment, a vehicle, or building something out, the return of 100% bonus depreciation and the higher Section 179 limits make the timing of that purchase a real decision. And if you're a California homeowner, the higher SALT cap reopened deduction room that may reward coordinating when you pay deductible state and property taxes.

None of these are filing-season tasks. They're decisions with deadlines that fall before year-end, and they compound. The owners who come out ahead treat their CPA as a year-round partner, not an April vendor.

If you'd like help building a 2026 plan around your salary, retirement, and estimates before the year closes, schedule a consultation — this is the work I do.