Tax Season 2026: What Edison, NJ Residents and Small Businesses Need to Know Before Filing

Tax Season 2026

Tax Season 2026: What Edison, NJ Residents and Small Businesses Need to Know Before Filing

Tax season is here, and if you live or run a business in Edison, New Jersey, now is the time to get organized. Whether you are filing as an individual, a freelancer, or a small business owner, the 2026 tax season brings updated thresholds, new deduction opportunities, and a few changes that could affect how much you owe or how much you get back. At Innovation ITS, we help Edison-area clients navigate these complexities every year, and this guide breaks down what you need to know right now.

Key Tax Deadlines for 2026 You Should Not Miss

Missing a tax deadline can mean penalties, interest charges, and unnecessary stress. Here are the most important dates to keep on your calendar:

• April 15, 2026 — Federal income tax return due date for individuals (Form 1040) and most small businesses.
• April 15, 2026 — Deadline to contribute to a Traditional or Roth IRA for the 2025 tax year.
• March 17, 2026 — S-Corps and Partnerships (Forms 1120-S and 1065) must file or request an extension.
• January 31, 2026 — W-2s and 1099-NEC forms should have already been issued to employees and contractors.
• Quarterly estimated tax payments — If you are self-employed or a small business owner, Q1 2026 estimated taxes are due April 15.

If you need more time, filing for an extension is simple but remember, an extension to file is not an extension to pay. Any taxes owed are still due by April 15.

What Changed for the 2025 Tax Year (Filed in 2026)

The IRS made several inflation-based adjustments for the 2025 tax year. Here is what affects most filers in Edison and across New Jersey:

Standard Deduction Increases

The standard deduction for 2025 rose to $15,000 for single filers (up from $14,600) and $30,000 for married couples filing jointly (up from $29,200). This means many filers will reduce their taxable income more than last year without needing to itemize.

Updated Tax Brackets

Income thresholds for each federal tax bracket shifted upward due to inflation adjustments. This can prevent “bracket creep” where a raise pushes you into a higher bracket even though your real purchasing power did not increase. Review your bracket with a tax professional to understand exactly where you land for 2025.

Retirement Contribution Limits

For 2025, the 401(k) contribution limit is $23,500 (up from $23,000). If you are 50 or older, the catch-up contribution brings your total to $31,000. Maximizing these contributions before the April 15 IRA deadline is one of the most effective ways to reduce your taxable income.

Top Deductions Small Business Owners in Edison Should Claim

Running a small business in Edison, whether it is a retail shop, a service company, a restaurant, or a consultancy comes with real tax advantages. Too many business owners leave money on the table by not claiming every deduction they are entitled to. Here are the ones that matter most:

• Home office deduction — If you run part of your business from home, you may qualify to deduct a portion of rent, mortgage interest, utilities, and internet costs.
• Vehicle and mileage — Business use of your vehicle is deductible. For 2025, the IRS standard mileage rate is 70 cents per mile. Keep a detailed log.
• Section 179 expensing — Allows you to deduct the full cost of qualifying equipment and software in the year of purchase instead of depreciating it over time.
• Qualified Business Income (QBI) deduction — Pass-through businesses (sole proprietors, S-corps, LLCs) may deduct up to 20% of qualified business income, subject to income limits.
• Health insurance premiums — Self-employed individuals can deduct 100% of health insurance premiums for themselves and their families.
• Professional services — Fees paid to accountants, attorneys, and business consultants like Innovation ITS are fully deductible.
• Employee wages and benefits — Salaries, bonuses, and employer contributions to health insurance and retirement plans are all deductible business expenses.

Documenting these deductions properly is just as important as claiming them. Keep receipts, invoices, and mileage logs organized throughout the year.

New Jersey State Taxes: What Edison Residents Need to Know

Living and working in New Jersey adds a layer of complexity beyond federal taxes. New Jersey has its own income tax, sales tax rules, and business filing requirements that do not always mirror federal law.

NJ Income Tax

New Jersey uses a graduated income tax rate ranging from 1.4% to 10.75%, one of the higher top rates in the country. Residents must file Form NJ-1040 and are taxed on worldwide income. Importantly, New Jersey does not conform to all federal deductions, for example, the federal standard deduction does not apply to NJ taxes.

Property Tax Deductions

Edison homeowners can deduct up to $15,000 in property taxes on their New Jersey return. With Middlesex County property taxes averaging among the higher rates in the state, this deduction is significant for most homeowners.

NJ ANCHOR Property Tax Relief Program

The Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program provides substantial property tax relief for eligible homeowners and renters. Many Edison residents qualify but fail to apply. If you have not checked your eligibility, this is a potential benefit worth hundreds or thousands of dollars.

5 Common Tax Mistakes to Avoid This Filing Season

Even small errors can delay your refund or trigger an IRS notice. Watch out for these common pitfalls:

• Filing with incorrect Social Security numbers or mismatched names — The IRS cross-checks these automatically.
• Missing 1099 income — Freelancers and gig workers often underreport income from platforms that did not issue a 1099.
• Forgetting to report foreign bank accounts or income — FBAR and FATCA requirements apply to many New Jersey residents with international ties.
• Mixing business and personal expenses — This is a major red flag in an audit and makes bookkeeping much harder.
• Waiting until the last minute — Rushing increases errors. Starting early gives you time to gather documents and identify planning opportunities.

Why Work With a Local Tax Professional in Edison, NJ?

Tax software can handle straightforward returns, but it cannot replace the judgment of an experienced tax professional, especially if you own a business, have multiple income sources, recently bought or sold property, or have an IRS issue to resolve. A local firm like Innovation ITS understands the specific tax landscape of Middlesex County and New Jersey, including state-level credits, local business regulations, and the concerns most common among Edison’s diverse business community.

Working with a local tax professional means year-round support, not just someone you see once in April. It means proactive tax planning, help with quarterly estimates, audit representation if needed, and strategic advice for growing your business.

Ready to File? Get Professional Tax Help in Edison, NJ Today

At Innovation ITS, we offer comprehensive tax preparation services for individuals, families, and businesses throughout Edison and Middlesex County. Whether you need help with a simple return or complex multi-state filing, our team is ready to make the process smooth, accurate, and stress-free.

Contact us today to schedule your tax preparation appointment. The sooner you start, the better positioned you are to minimize your tax liability and maximize your refund.

Innovation ITS — Your Trusted Tax Professionals in Edison, NJ

Visit us at innovationits.com or call to book your appointment today.