Key deadlines: December 15, 2025 (NY Pass-Through Entity Tax payment) and January 15, 2026 (estimated tax payments)
As we head into year-end, now is the time to take a proactive look at your 2025 tax picture. A few smart planning moves completed before December 31st can reduce taxes, improve cash flow, and prevent unpleasant surprises at filing time. Below is a practical year-end checklist for the Federal and New York State planning, including two deadlines that deserve special attention: the New York pass-through entity tax (PT/“PTET”) payment due December 15, 2025, and quarterly estimated tax payments due January 15, 2026.
Important note: This is general guidance. Tax planning depends heavily on your entity type, income sources, and prior-year filings. Please coordinate with VRCPAs so we can tailor the steps below to your situation.
Checklist
1. Confirm your entity type and how your income is taxed
Before making any year-end moves, make sure you’re clear on the “lens” through which planning happens:
- Individuals (W-2, 1099, investments, retirement, rental.
- Pass-through businesses (S- corporations, partnerships, multi-member LLCs).
- Sole proprietors / single-member LLCs.
- C corporations.
- Trusts and estates.
The best strategy depends on whether you’re primarily managing wage income, self-employment income, pass-through profits, or capital gains—and whether New York issues (like PTET) apply.
2. New York PT / Pass-Through Entity Tax: payment due December 15, 2025.
If you own an interest in a pass-through entity (such as an S-corporation or partnership) that has elected into New York’s pass-through entity tax regime, a required payment is due December 15, 2025.
Why this matters?
- The PTET mechanism is often used to help convert certain state tax costs into a structure that may provide better federal tax treatment (depending on your facts).
- Missing the payment can reduce the benefit of the election and create avoidable penalties/interest.
What you should do now?
- Confirm whether your entity made the PTET election for 2025 (some clients have multiple entities—each may differ).
- Estimate 2025 NY-source income at the entity level (not just your personal income).
- Schedule the entity payment to be made by December 15, 2025.
- Coordinate with VRCPAs so the payment amount, method, and allocation are handled correctly and documented.
If you have more than one entity, this step becomes even more critical—each entity may have its own required payment.
3. Estimated tax payments due January 15, 2026 (Federal + New York).
For many taxpayers, January 15, 2026 is the deadline for the final quarterly estimated payments for the year (often referred to as the “Q4” estimate).
Who should pay attention?
You may need (or want) an estimated payment if you have income not subject to withholding, such as:
- Self-employment income or consulting (1099).
- Pass-through K-1 income.
- Capital gains.
- Rental/royalty income.
- Significant investment/interest/dividend income.
- Retirement distributions without sufficient withholding.
- Large one-time events (business sale, property sale, bonus, stock sale).
Planning tip: withholding can be a powerful fix.
In many cases, increasing withholding (from wages, bonuses, or retirement distributions) can be more effective than estimates because withholding is often treated as paid evenly throughout the year. If you’re tight on cash or trying to avoid underpayment penalties, ask us whether withholding adjustments can help.
4. Budgeting & Cash Flow Income timing: accelerate or defer (before December 31st).
Year-end planning is often about controlling when income is recognized.
Potential moves (depending on your situation).
- Defer income where allowed (delay invoicing/collections, postpone bonus, review constructive receipt rules).
- Accelerate income if you expect to be in a higher bracket next year or have expiring losses/credits.
- Review capital gains exposure and whether harvesting losses could help.
This is especially important for business owners with variable income and taxpayers with significant investment activity.
5. Expense timing: make deductible payments before year-end
A second major lever is accelerating deductions into 2025.
Common opportunities
Business expenses: equipment, supplies, professional fees, repairs, subscriptions, mileage logs finalized.
- Retirement plan contributions (see next section).
- Charitable contributions: confirm documentation and timing.
- Medical expenses (if itemizing and close to thresholds).
- State and local taxes: evaluate carefully—there may be limits and strategy considerations depending on your overall profile.
For business owners, proper documentation is everything—receipts, invoices, business purpose, and payment dates matter.
6. Retirement planning: reduce taxable income while building wealth.
Year-end is ideal for reviewing contributions and plan design.
Consider:
- Maxing out contributions to employer plans (where eligible).
- Reviewing IRA/Roth IRA eligibility and contribution strategy.
- For business owners, assessing whether the current plan is still optimal (some clients benefit from plan redesign based on profitability and payroll)
Even when contributions can be made later, the planning decision (and cash-flow forecasting) should happen now.
7. Business owners: payroll, owner compensation, and fringe benefits.
If you own an S- corporation or operate a closely held business, year-end is a critical time to review:
- Payroll levels and owner compensation strategy.
- Bonus timing and withholding.
- Health insurance reporting requirements (especially for more-than-2% S-corporation shareholders).
- Accountable plans and reimbursement policies.
- Home office, vehicle use, and substantiation.
Small adjustments here can make a big difference—both tax-wise and compliance-wise.
8. Entity and compliance hygiene: clean books = fewer surprises.
Tax planning works best with accurate, current financials.
Quick year-end accounting checklist
- Reconcile bank and credit card accounts.
- Ensure fixed assets and depreciation schedules are updated.
- Review owner distributions/draws and loan accounts.
- Confirm 1099/W-2 items for year-end reporting.
- Capture deductible expenses paid personally (if reimbursable).
- Clean books reduce the risk of missed deductions and help us estimate taxes accurately.
9. Action plan: what to do this week
To make this practical, here’s a simple sequence:
- Send VRCPAs your best estimate of 2025 income (business + personal) and any major one-time items.
- Confirm NY PTET/PT payment requirements and schedule the December 15, 2025.
- Review whether you need January 15, 2026 federal and NY estimated payments—or whether a withholding adjustment is better.
- Identify any deductions or purchases that should be completed before December 31st.
- Lock down your year-end documentation (charitable receipts, mileage, major invoices, and payroll records).
We can help you get it done.
Year-end planning is most effective when it’s specific. If you’d like, VRCPAs can run a quick projection and provide:
- Recommended NY PTET/PT payment amount and timing for December 15, 2025.
- Recommended federal + NY estimated payments for January 15, 2026.
- A tailored list of year-end moves based on your income, entity structure, and goals.
Stay curious. Stay informed. Stay ahead.
Warm regards,
The NS Insights Team