7 Tax Moves Self-Employed Professionals Should Make Before Year-End Under the OBBBA
Sam's List Editorial | 2026-06-06
7 Tax Moves Self-Employed Professionals Should Make Before Year-End Under the OBBBA The One Big Beautiful Bill Act changed the math on self-employed tax planning for 2026 in ways that are more significant than most people realize. Under the OBBBA, the QBI deduction is now permanent. Bonus depreciation is back at 100%. The phase-out ranges have widened. The calculus on S-corp elections looks different than it did two years ago. If your tax plan is still based on pre-OBBBA assumptions — or worse, on the "it might sunset" uncertainty that defined 2024 and 2025 planning — you may be leaving real money on the table between now and December 31. These seven moves apply to self-employed professionals with at least $150,000 in net income. The higher your income, the more each one is worth. 1. Maximize the QBI Deduction Before You Hit the Phase-Out Range Under IRC §199A as made permanent by the OBBBA, the qualified business income deduction lets self-employed individuals deduct up to 20% of qualified business income from taxable income. The prior sunset provision is gone. The OBBBA also widened the phase-in ranges — from $50,000 to $75,000 for single filers and from $100,000 to $150,000 for joint filers. For 2026, the taxable income threshold where that range begins sits at roughly $201,775 for single filers and $403,550 for joint filers, per the IRS's annual inflation adjustments. Below the threshold, you get the full 20% deduction without restriction. Above it, specified service trade or business (SSTB) limitations phase in — meaning consultants, attorneys, financial professionals, and other service providers start losing the deduction as income rises through the range. If your taxable income is near the threshold, deductions taken before year-end — retirement contributions, health insurance premiums, expense timing — can keep you inside the full-deduction range. The math: a single-filer consultant with $230,000 in taxable income is partway through the phase-out and losing a slice of a deduction worth up to $46,000 (20% of $230,000). Pulling taxable income back under roughly $201,775 with a solo 401(k) contribution can restore the full deduction — potentially worth several thousand dollars in federal tax, depending on your bracket and state. Verify the exact thresholds with your CPA; they adjust annually for inflation. 2. Fund a Solo 401(k) to the 2026 Contribution Limits For 2026, solo 401(k) employee deferrals max out at $24,500, per IRS Notice 2025-67. Employer profit-sharing contributions can add up to 25% of net self-employment earnings, with a combined...
