A practical, owner-friendly guide to what’s changing—and what to do next
“Current tax law” is a moving target—and small business owners feel that in real time: payroll decisions, cash flow timing, estimated payments, reimbursements, and even how you structure employee perks. If you run a service-based business in Surfside Beach, South Carolina (or nearby Horry County), a few 2026-specific updates can materially affect your tax bill and your day-to-day processes. This guide translates the most relevant updates into clear action items—so you can stay compliant, protect profitability, and plan with confidence.
What “current tax law” means for planning (and why 2026 is different)
For most business owners, “current tax law” isn’t about memorizing code sections—it’s about knowing which rules change your choices: how you reimburse mileage, what meals are deductible, how to document expenses, and which thresholds move with inflation.
Two categories matter most:
Inflation adjustments (annual): Many IRS thresholds change each year (standard deduction, brackets, various limits). These affect owners directly and also flow through to pass-through entity returns.
Rule changes (effective dates): Certain deductions and strategies become more (or less) favorable on a specific date—so timing matters.
Key 2026 updates many small businesses overlook
1) Standard mileage rate increased for 2026
If you (or employees) use personal vehicles for business and you reimburse or deduct mileage, the IRS standard mileage rate is 72.5 cents per mile for business miles beginning January 1, 2026. (irs.gov)
Planning tip: If your team drives to client sites (common for marketing, trades, home services, and professional services), update reimbursement policies and make sure mileage logs are consistent (date, destination, business purpose, odometer or app tracking).
2) Employer-provided meals: a 2026 deduction trap
Starting in 2026, many meals that were historically deducted by employers (for example, “for the convenience of the employer” meals such as on-site or cafeteria-style meals) are commonly discussed as becoming nondeductible unless they meet specific exceptions or are treated as employee compensation. Meanwhile, client/business meals and travel meals typically remain 50% deductible when properly documented. (uhy-us.com)
Planning tip: Review which “meals” you currently code in bookkeeping (team lunches, office snacks/food, onsite meals, travel per diems). Reclassify now so your 2026 P&L reflects the right categories and your tax return has clean support.
3) Inflation adjustments for 2026: why owners should care even if they don’t itemize
The IRS publishes annual inflation adjustments that affect more than 60 provisions. For 2026, the IRS increased the standard deduction (for example, $16,100 for single filers and $32,200 for married filing jointly). (irs.gov)
Even if your business is a pass-through entity, these changes still matter because they influence your overall household tax picture, estimated tax payments, and planning around deductions and timing of income.
Step-by-step: how to operationalize these tax law updates (without living in spreadsheets)
Step 1: Update your reimbursement and expense policies
Confirm your 2026 mileage rate approach (standard mileage vs. actual expenses). If you reimburse employees, ensure your policy aligns with accountable plan requirements (timely substantiation and receipts where needed). Then standardize how your team reports mileage.
Step 2: Clean up meal categories in your bookkeeping chart of accounts
Create separate expense categories (or classes) for: Client business meals (50%), Travel meals (50%), and Employee/office meals. This reduces year-end guessing and helps prevent accidentally deducting costs that may be disallowed in 2026.
If your books are already tight, strong bookkeeping is the foundation for confident tax planning. You can learn more about JTC’s approach here: Bookkeeping Services & cash flow management support.
Step 3: Re-forecast cash flow for taxes and payroll
Small law changes often hit cash flow before they hit the tax return. Set a quarterly rhythm: reconcile books, review YTD profit, project the next quarter, and adjust estimated payments. If you’re outsourcing payroll, align withholding, reimbursements, and reporting so you avoid messy W-2 corrections later. See: Payroll Processing Services.
Step 4: Put tax planning on a calendar—not a panic button
The best “current tax law” strategy is consistent execution. A proactive tax plan can coordinate entity structure, compensation strategy, deduction timing, and documentation. If you want a year-round plan instead of a March scramble, explore: Tax Planning Services and Tax Return Preparation.
Did you know? Quick facts that can save real money
Mileage adds up fast: At 72.5¢/mile in 2026, 5,000 properly documented business miles can represent a meaningful deduction (or reimbursement budget). (irs.gov)
Tax changes can be “bookkeeping problems” first: If meal types aren’t separated in your chart of accounts, you risk over-claiming deductions—or spending hours reconstructing receipts at year end.
Inflation adjustments affect planning: IRS annual updates move thresholds and deductions, which can change your best timing for income and expenses. (irs.gov)
Quick comparison table: what to review for 2026
| Area | What changed for 2026 | What to do this month |
|---|---|---|
| Mileage | Standard business rate is 72.5¢/mile starting Jan 1, 2026. (irs.gov) | Update reimbursement policy, confirm tracking method, train staff. |
| Meals | Commonly discussed: many employer-provided meals become nondeductible in 2026 unless exceptions apply; client/travel meals often remain 50% with documentation. (uhy-us.com) | Split meal categories in bookkeeping; set receipt/documentation rules. |
| Inflation adjustments | Standard deduction and various thresholds increased for tax year 2026. (irs.gov) | Refresh your estimated tax plan; revisit income/expense timing. |
Local angle: Surfside Beach & Horry County tax touchpoints to keep on your radar
Federal “current tax law” is only part of the picture. Local compliance matters too—especially for hospitality-adjacent businesses and seasonal operations along the Grand Strand.
If you sell taxable goods/services: understand South Carolina’s sales tax layers
South Carolina’s statewide sales tax rate is 6%, and counties/municipalities may add local taxes. (dor.sc.gov) That means your actual rate can vary by location and effective date—important for pricing, invoicing, and point-of-sale configuration.
If you’re in food/beverage or lodging: check Surfside Beach hospitality/accommodations requirements
Surfside Beach has local hospitality and accommodation-related filings for certain businesses (for example, hospitality tax and local accommodation tax administered by the town). (surfsidebeach.org) If your business model touches prepared food, short-term rentals, or tourism-related sales, confirm you’re registered correctly and filing on time.
JTC CPAs is headquartered in Boise, Idaho, and supports business owners with proactive planning and operational accounting. If you’d like help coordinating multi-state compliance and building a clean, audit-ready system, you can start here: JTC CPAs locations & contact options.
Ready for a tax plan that stays current all year?
If you want a CPA team to handle the details—bookkeeping cleanup, proactive tax planning, payroll coordination, and year-end filing—JTC CPAs can help you build a system that supports growth (not stress).
FAQ: Current tax law questions small business owners ask
What mileage rate should I use for business miles in 2026?
The IRS optional standard mileage rate for business use is 72.5 cents per mile starting January 1, 2026. (irs.gov) Whether you should use standard mileage or actual expenses depends on your vehicle costs, usage, and recordkeeping.
Are business meals still deductible in 2026?
Many typical client/business meals remain 50% deductible when documented properly. Some employer-provided meals (like certain on-site meals) are widely discussed as becoming nondeductible in 2026 unless they meet exceptions or are treated as compensation. (uhy-us.com)
Do inflation adjustments matter if I’m a pass-through entity?
Yes. Your business income flows to your personal return, so changes to the standard deduction and thresholds can affect estimated taxes, withholding strategy, and the best timing for income and expenses. (irs.gov)
What’s the easiest way to stay compliant without spending weekends in QuickBooks?
Set a monthly close process (reconciliation + review), separate key tax-sensitive categories (meals, mileage, contractors), and schedule quarterly planning. If you want hands-on support and cleaner reporting, see: Bookkeeping Services.
If I’m behind on returns or have notices, does “current tax law” still help me?
Yes—because resolution work often requires correct filings under the rules for each tax year, plus a plan to prevent repeat issues. If you need help with back taxes or unfiled returns, see: Tax Resolution Services.
Glossary (plain-English)
Standard mileage rate: An IRS-set cents-per-mile amount you can use (instead of actual vehicle expenses) to calculate deductible business vehicle costs.
Accountable plan: A reimbursement arrangement where employees substantiate business expenses (time, place, business purpose), allowing reimbursements to be excluded from wages when structured properly.
50% deductible meals: Many business meals are only partially deductible and require documentation (who, what, when, where, and business purpose).
Inflation adjustment: Annual IRS updates that increase (or change) certain thresholds so taxpayers aren’t pushed into higher taxes simply due to inflation.
