Tax Moves to Begin in Early 2026 That Will Save You When April Comes Around

By Gary Galstyan, Founder & CEO at Rockwell Capital Group

One thing I’ve learned as the Founder and CEO of Rockwell Capital Group is that tax savings don’t come from “great timing,” they come from early timing. 

Every April, I can practically sort clients into two groups: those who began planning at the start of the year, and those who hoped they could outsmart the system at the eleventh hour. The difference in outcomes between those groups is enormous.

That pattern is going to be even more pronounced heading into 2026, when several major provisions from the Tax Cuts and Jobs Act are scheduled to end. During past tax-law transitions, I watched some businesses save tens of thousands simply because they made adjustments before the law officially changed. Others, because they waited, spent the following April playing damage control.

If you want to be among the smooth-sailing group next time, these are the moves you should position yourself to make right at the start of 2026, not midyear and certainly not at filing time.

1. Get Ahead of the New Tax Bracket Landscape

If the TCJA sunsets as written, tax brackets will shift upward for many households and business owners. I can’t tell you how many times someone has come to us shocked by what one bracket jump did to their tax bill.

What consistently separates the well-prepared? They don’t just “wait and see.” They get their 2026 income model built before Q1 ends.

From experience, this early modeling allows business owners to:

• Time income more intentionally

• Rethink salary vs. distribution ratios

• Decide whether bonus payouts belong in December 2025 or early 2026

I once had a client avoid a five-figure tax increase simply because we modeled their income in January and identified an opportunity to shift compensation. Waiting until March would have cost them dearly.

Bottom line: Run your 2026 numbers early. Bracket awareness is foundational, not optional.

2. Reevaluate Your Business Entity Before the Rules Catch Up to You

We always perform entity-structure reviews when tax laws change, and it remains one of the highest-ROI exercises a business can do. With the potential reduction or elimination of the 20% QBI deduction after 2025, many S-corps, partnerships, and sole props will find the math changing under their feet.

What I’ve learned watching clients over the years is simple: Those who stick with the same entity “because it’s what we’ve always done” almost always overspend in taxes.

The smartest operators routinely reassess questions like:

• Is my current structure still the most tax-efficient?

• Is my salary/distribution balance still defensible?

• Does switching to or from S-corp create a new advantage?

• Should I reconsider a C-corp now that the landscape is changing again?

Action point: Block time with your advisor early in 2026 for a full re-analysis, not a superficial check of last year’s return.

3. Lock In Your Retirement Strategy Before Spring Eats Your Calendar

I’ve lost count of how many times I’ve seen entrepreneurs intend to maximize their retirement opportunities, only to miss the window. When you wait until fall to think about contributions or plan setup, your options shrink dramatically.

The people who benefit most each year tend to:

• Pick their retirement vehicle (SEP, SIMPLE, solo 401(k), defined benefit, etc.) early

• Set contribution goals off projected profits

• Make early contributions so the tax-advantaged growth starts sooner

One business owner we worked with saved more than they expected by transitioning to a solo 401(k) in January. Had they waited until the second half of the year, that opportunity would have disappeared.

Takeaway: Assume your retirement strategy needs revisiting the moment 2026 starts.

4. Don’t Assume Deductions Will Look the Same

Bonus depreciation is decreasing, meals deductions are shifting, and several business-friendly provisions are in flux. Every year, I see someone budget for equipment or improvements based on outdated deduction rules, only to discover those savings don’t exist anymore.

To avoid that outcome in 2026, make sure you understand:

• Where bonus depreciation will land

• What Section 179 limits will allow

• Which meal and entertainment rules apply

• How interest deduction caps will be calculated

It’s easy to spend money assuming you’ll get a deduction, until you don’t. I’ve seen that mistake turn profitable years into surprisingly expensive ones.

Smart move: Build your 2026 cap-ex plan with updated tax assumptions, not last year’s habits.

5. Reset Your Estimated Tax or Withholding Strategy From Scratch

If there’s one area where I consistently see preventable penalties, its estimated taxes. When income rises, tax brackets change, or withholding doesn’t keep pace, the underpayment notice shows up right on schedule.

Even business owners who are otherwise meticulous tend to treat withholding like a “set it and forget it” task. But 2026 is not the year for autopilot.

What consistently helps: A complete reset of estimated taxes in January, built on forward-looking projections instead of recycled 2025 numbers.

This one step alone has spared many clients the penalty letter that someone in their situation usually receives.

The Big Lesson: Tax Savings Favor the Early Mover

Across every tax cycle I’ve lived through, one truth has held: you cannot rescue a year you didn’t plan for. April rewards the people who act long before April arrives.

The 2026 tax landscape will introduce changes, but also opportunities. If you treat the beginning of the year as your decision-making window, and not an afterthought, you can position yourself to save more, stress less, and make smarter moves with every dollar.

If you’re ready to gain clarity and control over your business finances, Rockwell Capital Group is here to help. Connect with us at (888) 676-7878 or book a consultation to turn your numbers into your greatest growth advantage.