Do you file both business and personal taxes?

We handle all major business filings (Schedule C, 1120-S, 1065, 990) and your individual 1040. Everything stays in sync, and you don’t have to manage multiple vendors or repeat your numbers.

What makes your tax filing different from other firms or TurboTax?

Most preparers just enter numbers. We use the MERNA™ Method to analyze your entity, structure your deductions, and ensure every filing decision is proactive—not reactive. You’re not just getting a return. You’re getting a strategic document built to reduce your taxes long term.

Can you help if I’m behind on taxes?

Yes—we specialize in helping clients catch up. Whether it’s one year or five, we’ll build a clean-up plan, file accurate returns, and help you avoid penalties or reduce what you owe.

Do I need to clean my books before working with you?

No. We’ll clean up your bookkeeping as part of the filing process if needed. Messy books, missing 1099s, or past filing errors? We’ve got it covered.

How long does it take to file?

Once we receive all documents, most returns are completed and ready for your review in 7–10 business days. Rush filing is available during peak season.

Do you offer audit protection?

Yes. We document every deduction, reference IRS code where needed, and keep internal records that can support your return if the IRS ever asks questions. Our goal is not just filing—it’s filing with protection.

What’s the investment?

Each return is priced based on complexity. Basic business returns start around $750, while more advanced filings (S-Corp, multi-year cleanup, or strategy implementation) are quoted after a free assessment. Most clients see 3x–6x ROI in tax savings.

Kentucky 2026 Tax Changes — What the One Big Beautiful Bill Act (OBBBA ) Means for Residents

On January 1, 2026, the federal tax landscape underwent a historic and positive transformation. The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, made permanent many of the major tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA) and introduced new beneﬁts for taxpayers. The long-feared 2026 “tax cliﬀ” has been avoided.

For Kentuckians, this is exceptionally good news. As a state with a ﬂat income tax that uses federal Adjusted Gross Income (AGI) as its starting point, these permanent federal changes signiﬁcantly enhance your ﬁnancial outlook. This guide provides a clear, localized breakdown of how the permanent tax laws under OBBBA will impact your income, business, and ﬁnancial strategy in 2026 and beyond.

Get a 2026 Kentucky Tax Strategy

Federal Changes Bring Relief to Kentucky Taxpayers

While Kentucky has its own state tax system, your federal tax bill is a major part of your overall ﬁnancial picture. OBBBA has made that picture much brighter.

Lower Federal Tax Brackets are PERMANENT

The biggest news is that the lower individual income tax rates from the TCJA are now permanent. The anticipated jump in federal tax rates has been avoided.

Kentucky Impact:

This is a crucial win for Kentucky’s working families. For professionals in Louisville and Lexington, workers in the state’s robust manufacturing and healthcare sectors, and dual-income households, having lower, predictable federal tax rates provides much-needed ﬁnancial stability.

The Federal Standard Deduction is PERMANENT

The higher federal standard deduction, which simpliﬁes tax ﬁling for millions, is also here to stay.

Kentucky Impact:

A permanent, higher federal standard deduction is a direct beneﬁt for the majority of Kentuckians. It provides a substantial, straightforward deduction on

your federal return, lowering your taxable income without the need for complex itemization.

The QBI Deduction is PERMANENT and ENHANCED (Federal Level)

This is the most critical update for Kentucky’s business and agricultural community. The 20% Qualiﬁed Business Income (QBI) Deduction is not expiring. OBBBA has made it a permanent part of the federal tax code and even improved it.

Important Note for Kentucky:

This is a major federal beneﬁt for Kentucky’s:

Key OBBBA Enhancements to QBI:

Permanence: The 20% federal deduction is locked in for 2026 and
Minimum Deduction: A new $400 minimum federal deduction is available for any business with at least $1,000 of qualiﬁed

Kentucky Impact: This is a massive win for the state’s thriving small business and agricultural ecosystem. For the thousands of farms and main street businesses that are the backbone of Kentucky’s economy, the permanent federal QBI deduction provides tens of thousands of dollars in annual tax savings, fueling further investment and growth.

New Federal Tax Breaks for Kentucky Residents

OBBBA also introduced several new federal deductions that will directly beneﬁt many in Kentucky:

Senior Deduction: An additional $6,000 deduction for individuals 65 and older, providing federal tax relief for Kentucky’s retirees (subject to phase-out).
Overtime Deduction: Deduct up to $12,500 ($25,000 for joint ﬁlers) of qualiﬁed overtime pay, a signiﬁcant beneﬁt for Kentucky’s manufacturing and logistics
Auto Loan Interest Deduction: Deduct up to $10,000 in interest on new personal vehicle loans from 2025-2028.

Kentucky-Speciﬁc Tax Considerations for 2026

Kentucky’s Flat Tax and Federal Conformity

Kentucky has a competitive ﬂat state income tax. Because Kentucky uses federal Adjusted Gross Income (AGI) as the starting point for state taxes, the permanent federal deductions under OBBBA help keep your AGI lower, which in turn can reduce your state tax liability.
While the state tax rate remains the same, a lower starting income ﬁgure is a clear beneﬁt.

Agriculture and Rural Households

For Kentucky’s signiﬁcant agricultural sector, OBBBA provides stability. The permanence of the federal QBI deduction and 100% bonus depreciation for qualiﬁed property allows for better long-term planning around equipment purchases and operational investments.
This federal certainty complements Kentucky’s state-level tax environment, creating a supportive framework for farm families and related businesses.

Retirement Income in Kentucky

Kentucky oﬀers a partial exemption for retirement income, but many forms of it are still
taxable at the state level. The good news is that the permanent lower federal tax rates
under OBBBA reduce the overall tax burden on these withdrawals, leaving more money in your pocket.

What Kentucky Taxpayers Should Do Now

UpdateYour Tax Plan: Your old strategy, based on the fear of expiring tax cuts, is It’s time to build a new plan based on permanence and new federal opportunities.
Integrate Federal and State Planning: Work with a professional who understands how to maximize permanent federal beneﬁts while navigating Kentucky’s ﬂat tax system.
Maximize the Federal QBI Deduction: If you own a farm or business, ensure your structure and bookkeeping are optimized to claim the full 20% federal QBI
LeverageReal Estate Beneﬁts: Plan your real estate investments to take full advantage of permanent 100% bonus depreciation on your federal return.

Kentucky 2026 Tax FAQ

Does Kentucky conform to QBI?

No — QBI is federal-only.

Will Kentucky taxes increase?

Rates stay the same, but taxable income will rise due to federal changes.

Are families affected?

Yes — reduced credits and higher federal taxable income impact refunds.

Are STR owners impacted?

Yes — depreciation and rental classification rules tighten.

Are retirees affected?

Yes — federal bracket increases impact taxable retirement withdrawals.

Get Your Personalized 2026 Kentucky Tax Plan

The tax landscape has permanently shifted in your favor. Don’t operate on outdated assumptions. A personalized strategy session will ensure you are structured to maximize every new and permanent beneﬁt under OBBBA, fully integrated with Kentucky’s unique economic and tax environment.

Because tax situations vary by individual and business, many Kentucky residents choose to work with a qualified tax professional. You can explore available Kentucky tax services here:

How LLC Owners Save on Taxes in 2026

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