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Why a Tri-State Checklist?
Most tax checklists stop at the federal level. That misses where NY, NJ, and PA owners actually lose money. The expensive mistakes are state-level: an unmade NJ BAIT election, a missed NY PTET window, an unreviewed cross-state allocation. Each one can cost more than every federal deduction on the list combined.
This checklist covers both layers. Work through it once now, then again in November — several items have setup steps that must happen well before December 31. Dates and figures are for tax year 2026 and were last reviewed on July 23, 2026. The 2026 tax calendar has the full date-by-date view.
A note on how it is organized. The first three sections are recurring — deadlines and habits that repeat every month or quarter. The last three are decisions: state elections, year-end moves, and the signals that a situation has outgrown do-it-yourself. Most owners find they are solid on the recurring half and behind on the decisions. That is normal. The decisions are where a planning conversation earns its fee, and the checklist tells you which ones to bring to it.
1. Deadlines Still Ahead (2026 → Early 2027)
- Sept 15, 2026 — Q3 2026 federal estimated tax payment (Form 1040-ES). NJ, NY, and PA state estimates are due the same day.
- Sept 15, 2026 — extended 2025 S-Corp (Form 1120-S) and partnership (Form 1065) returns due.
- Oct 15, 2026 — extended 2025 individual returns (Form 1040) due.
- Dec 31, 2026 — last day for most 2026 moves: equipment placed in service, charitable gifts, and most retirement-plan setup.
- Jan 15, 2027 — Q4 2026 estimated tax payment.
- Feb 1, 2027 — W-2s to employees and 1099-NEC forms to contractors (Jan 31 falls on a Sunday).
2. Bookkeeping Hygiene (Monthly)
- Business banking fully separate from personal accounts — every business transaction runs through business accounts.
- Every account reconciled monthly to the bank statement. Unreconciled books are the top cause of missed deductions.
- Receipts captured digitally at the time of purchase, not reconstructed in April.
- Mileage log current — date, miles, and business purpose for every trip you plan to deduct.
- Owner pay recorded correctly — draws vs. payroll vs. distributions, depending on your entity type.
3. Payroll & Contractor Items
- W-9 collected from every contractor before the first payment — not during January 1099 season.
- Federal and state payroll filings current (Form 941 plus your state equivalents).
- 2026 Social Security wage base: $184,500 — withholding above this stops for the year; confirm your payroll system applies it.
- S-Corp owners: reasonable salary reviewed against distributions before year-end, not at filing time.
4. Tri-State Specifics (NY · NJ · PA)
- NJ pass-throughs: BAIT election evaluated. The Business Alternative Income Tax (rates 5.675%–10.9%) is NJ's federal SALT-cap workaround — often worth thousands for profitable S-Corps and partnerships.
- NY pass-throughs: PTET election status confirmed. New York's election windows close early in the tax year — missing one costs a full year of the benefit.
- NY/NJ cross-state workers: allocation reviewed — nonresident returns and resident credits for taxes paid to the other state.
- PA businesses: local registrations current — local earned-income tax and, in Philadelphia, BIRT.
- Sales tax nexus reviewed if you sell into other states — economic nexus can create filing duties with no physical presence.
- NJ annual report filed — due each year by the end of your formation anniversary month.
5. Year-End Moves to Evaluate Before Dec 31
- Retirement plan established and funded — several plan types must exist before year-end even if funded later.
- Equipment purchases timed — Section 179 and bonus depreciation require the asset placed in service by Dec 31.
- QBI deduction position reviewed — entity structure and wages affect the 20% pass-through deduction.
- 2026 SALT deduction cap: $40,400 (phases down at higher incomes) — itemizers should review state-tax timing with their preparer.
- Estimated payments trued up against actual 2026 income to avoid underpayment penalties.
- HSA contributions made if you have a qualifying high-deductible health plan.
- Charitable giving strategy set — bunching multiple years of gifts can beat the standard deduction.
6. Time to Talk to a CPA If…
- Your books are more than 3 months behind, or you no longer trust the numbers.
- Profit is growing and you have never run an S-Corp or BAIT/PTET analysis.
- You received an IRS or state notice you are not sure how to answer.
- You work in one state and live in another, and no one has reviewed the allocation.
What Changed for Tax Year 2026
Two figures on this checklist are new for 2026 and worth flagging. The federal SALT deduction cap rose to $40,400, with a phase-down at higher incomes. That single change re-opens itemizing for many tri-state owners who took the standard deduction for years. It also changes the math on the BAIT and PTET elections — the workarounds still help, but the break-even point moved.
The Social Security wage base also rose to $184,500. Owners running payroll should confirm their system caps withholding correctly. The full set of current-year figures lives on the NJ tax rates and figures page, which tracks each change with its source.
How to Use This Checklist
Do not try to clear all six sections in one sitting. Sections 1 through 3 are maintenance — put the deadlines on your calendar now and make the bookkeeping items a monthly habit. Section 4 is a one-time review: read each tri-state item once and mark the ones that apply to your situation.
Section 5 is where the money is, and it has a clock. Several year-end moves need setup steps in October or November. A retirement plan that must exist before December 31 cannot be opened on December 30. Walk section 5 twice: once now, once in early November.
Deep-dives on the biggest items: the estimated tax calculator for the quarterly payments, and the NJ BAIT election guide for pass-throughs. Books behind? Start with catch-up bookkeeping. S-Corp owners can review salary planning on the S-Corp accountant page.
Which Items Apply to Your Entity Type?
Sole proprietors and single-member LLCs live in sections 1, 2, and 5. Your business income lands on Schedule C, so the quarterly estimates are your own Form 1040-ES payments. The pass-through election items do not apply to you — but the S-Corp analysis in section 6 might, once profit is consistent.
S-Corps and partnerships should read every section. The March and September entity deadlines, the reasonable-salary review, and the BAIT/PTET elections are all yours. The elections alone justify an annual planning conversation.
C-Corps follow a different filing rhythm and pay tax at the entity level, so the pass-through election items do not apply. The bookkeeping, payroll, and nexus sections still do. Most small tri-state businesses are not C-Corps — if yours is and no one has explained why, that question belongs at the top of your list.
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Checklist — Frequently Asked Questions
Is the 2026 tri-state tax checklist really free?
Yes. The full checklist is on this page with no form and no email required. The print-ready PDF version is also free. ProAxis asks for your contact details before the PDF download, so the firm can follow up if you want help with an item. You can use the web version without giving any information.
Does this checklist apply to my LLC?
Yes, with one nuance: how an LLC uses it depends on how the LLC is taxed. A single-member LLC follows the sole-proprietor items (Schedule C, quarterly estimates). An LLC taxed as an S-Corp or partnership follows the pass-through items. Those include the September 15 extended-return deadline and the NJ BAIT or NY PTET election reviews.
What is the NJ BAIT election on the checklist?
The NJ Business Alternative Income Tax (BAIT) lets pass-through entities (S-Corps and partnerships) pay NJ tax at the entity level. The rates run from 5.675% to 10.9%. That entity-level payment creates a federal deduction that works around the individual SALT deduction cap. The owners then claim a credit on their NJ returns. It is elective, must be made each year, and is one of the most valuable planning items for profitable NJ pass-throughs.
Do I get the PDF instantly or by email?
Instantly. After you submit the short form, the PDF download starts in your browser right away — no waiting for an email. ProAxis also receives your request and may follow up once to ask whether you want help with anything on the checklist. No newsletter, no drip sequence.
When should a small business start year-end tax planning?
October. Most year-end moves have a hard December 31 deadline, but several need setup steps weeks earlier. Examples: opening a retirement plan, ordering equipment that must be placed in service, or running an S-Corp reasonable-salary analysis before the year's last payroll. Starting in October leaves room to actually execute. Starting in late December usually means listing the moves you can no longer make.
How long should I keep my business tax records?
The general IRS window is three years from the date you file, because that is how long the IRS normally has to examine a return. Several situations extend it — payroll records, property and asset records, and anything tied to a loss or bad-debt claim should be kept longer. The safe habit for a small business: keep digital copies of everything, organized by year. Never discard records for a year that has any open question.