January 2026 Tax Filing Deadlines: What’s Due at Month-End?

As the new year begins, January is a crucial month for tax compliance. The end of January brings several important federal and state filing deadlines for businesses, payroll departments, and tax professionals. Here’s what you need to know for the 2026 filing season.

 

Key Federal Filings Due at the End of January 2026

 

Forms W-2 and W-3

• Employers must furnish Form W-2 to employees and file Copy A of all Forms W-2, along with Form W-3, with the Social Security Administration (SSA).
• Due Date: January 31, 2026. Since January 31 falls on a Saturday, the effective due date is Monday, February 2, 2026.

 

Form 1099-NEC and 1099-MISC

• Businesses must furnish Form 1099-NEC to recipients (such as independent contractors) and file Copy A with the IRS for nonemployee compensation paid in 2025.
• Dollar Threshold: For payments made in 2025 (filed in 2026), a 1099-NEC or 1099-MISC is required if payments to a nonemployee or for reportable miscellaneous payments total $600 or more during the year.
• Due Date: January 31, 2026 (effective February 2, 2026).

 

Other Payroll and Information Returns

• Form 941 (Q4 2025): Quarterly federal employment tax return.
• Form 940 (FUTA): Annual Federal Unemployment Tax Act return.
• Form 945: Annual Return of Withheld Federal Income Tax (for nonpayroll items).
• Due Date: January 31, 2026 (effective February 2, 2026), with a possible extension to February 10 if all deposits were made on time.

 

State Filings: W-2s, 1099s, and Annual Reconciliations

Most states require employers and payers to file annual wage and information returns that align with federal deadlines. This includes:

 

• W-2 and 1099 Filings: States generally require copies of W-2s and 1099s reporting state wages, withholding, or state-source income. Many states participate in the IRS Combined Federal/State Filing Program for 1099s.
• Annual Reconciliation Forms: States often require a reconciliation form summarizing total wages and withholding for the year.
• Electronic Filing: Many states now require or encourage electronic filing, with thresholds as low as 10 forms in some jurisdictions. Some states mandate e-filing for all employers, regardless of the number of forms.

 

Important: State deadlines and requirements can vary, so always confirm with your state’s revenue department.

 

1099 Threshold Changes Under the One Big Beautiful Bill

Currently, for payments made in 2025 (filed in 2026), the threshold for filing Forms 1099-NEC and 1099-MISC is $600. However, the One Big Beautiful Bill, signed into law in July 2025, increases this threshold to $2,000 for payments made after December 31, 2025 (i.e., for the 2026 tax year and beyond). Starting in 2027, the $2,000 threshold will be indexed for inflation.

The bill also aligns backup withholding rules with the new $2,000 threshold, meaning backup withholding will only apply if payments meet or exceed this amount for payments made after 2025. This change is expected to reduce the number of required 1099 filings for small payments and ease administrative burdens for businesses.

 

How "No Tax on Tips" and "No Tax on Overtime" Will Be Reflected on Form W-2

The "no tax on tips" and "no tax on overtime" provisions, enacted under the One Big Beautiful Bill, will be incorporated into Form W-2 starting with the 2026 tax year. The IRS is updating the W-2 form to include new reporting codes and fields:

 

• Box 12: Three new codes will be added:
• Code TP: Total amount of qualified tips (for the "No Tax on Tips" deduction).
• Code TT: Total amount of qualified overtime compensation (for the "No Tax on Overtime" deduction).
• Code TA: Employer contributions to a Trump Account (part of the same legislative update, but unrelated to tips/overtime).

 

• Box 14: This box will be split into two fields:
• Box 14a ("Other"): For miscellaneous items as in prior years.
• Box 14b: For the Treasury tipped occupation code, which identifies the employee’s occupation for tip deduction eligibility. The Treasury Department will publish a list of qualifying occupations and codes.

 

For tax year 2025, the W-2 will not be updated, and employers are not required to separately report qualified tips or overtime on the form. However, employers are encouraged to provide this information to employees by other means (such as Box 14 or a supplemental statement) to help them claim the deductions. Starting with the 2026 tax year, employers must use the new Box 12 codes (TP and TT) and Box 14b for occupation codes to report these amounts.

 

Final Thoughts

The end of January remains a pivotal time for tax compliance. With important federal and state deadlines, and significant changes on the horizon for 1099 reporting and W-2 reporting of tips and overtime, it’s more important than ever to review your processes and ensure timely, accurate filings. Double-check both federal and state requirements, and prepare for the new 1099 thresholds and W-2 codes that will take effect for payments and wages in 2026.

Stay ahead of the curve this January and set the tone for a smooth 2026 tax season!

 

Have any questions? Please reach out to our team!