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Accountable plan for caregiver mileage and expenses
Reimbursing employees for business mileage and out-of-pocket costs under a written accountable plan is generally not wages to them, and the agency can deduct it. The plan needs business purpose, substantiation and return of excess. Make sure caregivers are classified correctly as employees or contractors first.
One useful actionCollect dated mileage logs with each visit location and purpose, and write down the reimbursement policy.
IRS car and travel guidance ↗02
Retirement plan for the owner and staff
A 401(k), SEP or similar plan can reduce taxable income for the owner. The 2026 401(k) employee deferral limit is $24,500, and SEP employer contributions can be up to the lesser of 25% of pay or $72,000. With employees, the plan generally has to cover eligible staff. A new plan may qualify for a startup credit of up to $5,000 a year for three years for eligible small employers.
One useful actionAsk a tax professional to compare plan types against your payroll before year-end.
IRS 2026 retirement plan limits ↗ IRS retirement plan startup credit ↗03
Equipment, vehicles and software
Qualifying equipment placed in service this year may be deducted faster under Section 179 or bonus depreciation, instead of over several years. Limits, vehicle caps and business-use tests apply, and the asset must be in service by year-end, not just ordered.
One useful actionList planned purchases with the date each will be in service. Keep invoices and proof of the in-service date.
IRS depreciation guidance ↗Business expenses must be ordinary and necessary. Keep receipts and the business purpose; separate personal use and reimbursements. Dollar limits shown are for 2026 and can change; eligibility and entity type matter. General education, not individual tax advice.
