Tax Help Near Me Providence: 2026 Tax Planning Guide for Business Owners & High-Income Earners

For Providence business owners and high-income professionals, 2026 brings major tax planning opportunities. The One Big Beautiful Bill Act reshaped deductions, created new tax breaks, and fundamentally changed how you should approach tax help near me Providence strategies. Whether you’re an LLC owner, real estate investor, or W-2 professional, understanding these changes determines how much you keep versus what you owe the IRS.

Table of Contents

• Key Takeaways
• What Changed? 2026 Tax Laws Explained
• How to Maximize the $40,000 SALT Deduction Cap
• New Deductions You Can Claim in 2026
• Should You Restructure Your Business Entity?
• Advanced Retirement & Tax Planning Strategies
• Finding Expert Tax Help Near Me Providence
• Uncle Kam in Action: Business Owner Saves $18,500
• Next Steps
• Frequently Asked Questions

Key Takeaways

• The SALT deduction cap quadrupled to $40,000, but it returns to $10,000 in 2030—act now.
• New deductions for tips ($25,000), overtime ($12,500), auto loan interest ($10,000), and seniors ($6,000).
• Strategic entity restructuring can unlock additional SALT deductions and reduce self-employment taxes.
• Start tax planning NOW—delays cost thousands in missed opportunities.

What Changed? 2026 Tax Laws Explained

The OBBBA fundamentally restructured deductions, credits, and standard deduction amounts. For Providence residents searching for tax help, these changes create both complexity and opportunity.

Standard Deduction Increases (2026 Amounts)

For the 2026 tax year, the IRS raised standard deductions by more than normal inflation adjustments. This means more income is shielded from taxes before any calculations begin.

Filing Status	2026 Standard Deduction	Age 65+ Bonus
Single	$15,750	+$2,000
Head of Household	$23,625	+$2,000
Married Filing Jointly	$31,500	+$1,600 each spouse

A married Providence couple now shields $31,500 from taxes automatically. Only income above that threshold faces taxation. This alone reduces taxable income by $1,500 compared to prior year rules.

The Game-Changing SALT Deduction: $40,000 Cap (Through 2029)

This is the most significant change for Providence residents. The state and local tax deduction cap jumped from $10,000 to $40,000 for tax years 2025 through 2029. This is temporary. After 2029, it drops back to $10,000.

How to Maximize the $40,000 SALT Deduction Cap

Maximizing SALT deductions is THE cornerstone of 2026 tax help near me Providence strategies for business owners.

What Counts Toward the $40,000 SALT Cap?

• Rhode Island state income taxes (fully paid or withheld)
• Property taxes on primary residence
• Property taxes on business real estate
• Pass-through entity taxes (under PTE election)

For Providence residents with high state tax obligations, this deduction is powerful. Coordinate with a professional tax strategy service to model itemizing vs. standard deduction scenarios.

Income Limits & Phaseouts for SALT

High earners must watch for phaseouts. For income over $500,000, the SALT cap begins to phase down. Above certain thresholds, your deductible SALT amount shrinks.

New Deductions You Can Claim in 2026

Beyond standard deduction increases, the OBBBA created entirely new deductions available to Providence earners in specific situations.

The $6,000 Bonus Senior Deduction

Taxpayers 65+ get an additional $6,000 deduction on top of the standard deduction—but only if adjusted gross income is below $75,000 (single) or $150,000 (married).

• Single retiree age 65+: $15,750 + $2,000 + $6,000 = $23,750 total standard deduction
• Married couple both 65+: $31,500 + $1,600 + $1,600 + $12,000 = $46,700 total deduction

This deduction dramatically benefits retired Providence residents with moderate income.

Tips, Overtime & Auto Loan Interest Deductions

If you earn tips or qualified overtime, or financed a US-made vehicle, new deductions apply:

Deduction Type	Single Limit	Joint Limit	Income Phaseout
Tips Income	$25,000	$25,000	Over $150k/$300k
Overtime Pay	$12,500	$25,000	Over $150k/$300k
Auto Loan Interest	$10,000	$10,000	Over $100k/$200k

These deductions phase out for higher earners and expire after 2028. Claim them while available.

Should You Restructure Your Business Entity?

With OBBBA’s new deductions and caps, your current LLC, S Corp, or sole proprietorship may no longer be optimal. Tax help near me Providence should always include entity structure review.

Pass-Through Entity (PTE) Elections & SALT Deductions

Some states allow pass-through entities to elect to pay taxes at the entity level rather than individual level. This strategy allows you to “absorb” state taxes at the entity, then deduct them individually—effectively bypassing some SALT limitations.

For Providence LLC owners, modeling PTE elections should be a priority if Rhode Island state taxes are high.

S Corp Election & Self-Employment Tax Savings

S Corp status can eliminate self-employment tax on distributions. For business owners earning $80,000+, this generates substantial savings. Coordinate with a professional entity structuring service to evaluate if conversion makes sense for your situation.

Advanced Retirement & Tax Planning Strategies

Beyond deductions, retirement account strategy shapes long-term tax efficiency. For Providence business owners, 2026 is ideal for advanced planning.

Solo 401(k) Advantages for Self-Employed

If you run a solo business or have side income, a solo 401(k) allows contributions up to $72,000 annually (2026 limit). This dwarfs traditional IRA limits of $7,000 and provides Roth conversion flexibility.

• Employee deferrals: $23,500 (2026)
• Employer contribution (up to 25% of net self-employment income)
• Roth features for high earners who exceed traditional IRA limits

Roth Conversion Strategies for Tax Bracket Management

In lower-income years, convert traditional IRA balances to Roth to lock in low tax rates. This is particularly powerful for business owners with variable income.

Finding Expert Tax Help Near Me Providence

Searching for “tax help near me Providence” requires finding professionals who understand 2026 OBBBA implications specifically. Generic tax preparation misses optimization opportunities worth thousands.

What to Look for in a Tax Strategy Professional

• Year-round advisory (not just April 15 filing focus)
• Specific expertise in entity optimization and SALT strategies
• Proactive scenario modeling and planning conversations
• Understanding of pass-through entity elections and state-specific rules
• Clear fee structure and transparent communication

Questions to Ask Providence Tax Advisors

• “Have you modeled SALT strategies for clients in my income range?”
• “Do you recommend entity restructuring based on 2026 tax law?”
• “How do you integrate retirement planning with current-year tax optimization?”
• “What ongoing contact should I expect between tax time?”

Expert tax advisory services near Providence should address all these questions proactively.

 

Uncle Kam in Action: Business Owner Saves $18,500 with 2026 Tax Strategy

Client Snapshot: Sarah is a 48-year-old marketing agency owner in Providence, earning $280,000 annual business income through an LLC. She employs 3 staff and pays approximately $32,000 in Rhode Island state taxes annually.

Financial Profile: Sarah reports business net income of $280,000, takes $85,000 in W-2 wages (unreasonably low), and distributes the remainder as K-1 income. She pays self-employment tax on the full amount and has been unable to maximize SALT deductions because her total itemized deductions never exceeded the standard deduction.

The Challenge: Sarah was overpaying self-employment taxes by taking too-low W-2 wages and losing the SALT deduction opportunity entirely by not itemizing. She had no strategy to address 2026 tax law changes.

The Uncle Kam Solution: Our team implemented a four-part strategy:

• S Corp Election: Convert LLC to S Corp election, reducing self-employment tax on distributions by approximately $18,000 annually.
• SALT Deduction Optimization: Model itemizing deductions using the new $40,000 SALT cap. Bundle state income taxes, property taxes, and a strategic charitable contribution to exceed standard deduction.
• Reasonable W-2 Adjustment: Increase W-2 wages to IRS-defensible level ($145,000) while maintaining S Corp benefits.
• Solo 401(k) Contribution: Establish solo 401(k) to absorb additional $32,000 in contributions, further reducing current-year taxable income.

The Results:

• Tax Savings (First Year): $18,500 through S Corp self-employment tax reduction alone. An additional $8,200 savings from SALT deduction optimization and 401(k) contributions.
• Total First-Year Savings: $26,700
• Ongoing Annual Benefit: $18,500+ per year in self-employment tax savings alone (permanent, as long as S Corp remains in effect)
• Investment in Strategy: $4,500 professional fee for entity conversion, planning, and documentation
• Return on Investment: 5.9x return in first year; ongoing positive ROI annually

This is just one example of how proven tax strategies have helped clients achieve significant savings. Sarah’s story demonstrates why seeking tax help near you in Providence NOW—not in April—creates extraordinary financial advantage.

Next Steps

• Audit Your Current Entity Structure: Confirm your LLC, S Corp, or sole proprietorship choice still aligns with 2026 tax law. Changes could be worth tens of thousands.
• Model Your SALT & Itemization Strategy: Calculate whether itemizing with the $40,000 SALT cap produces greater deductions than standard deduction. This decision drives filing status and overall strategy.
• Review Retirement Account Contributions: Ensure you’re maximizing 401(k), IRA, or solo 401(k) contributions available under 2026 limits. These reduce current-year taxable income immediately.
• Schedule a Tax Strategy Consultation: Don’t wait until April. Meet with a qualified tax strategist near Providence to model personalized 2026 scenarios specific to your income, entity, and life situation.

Frequently Asked Questions

Is the $40,000 SALT deduction cap permanent?

No. The cap is temporary through tax year 2029. After 2029, it reverts to $10,000. This makes 2026-2029 a critical window for maximizing SALT-deduction-dependent strategies. If you’re considering entity restructuring or major tax moves, execute them while the cap remains high.

Can I deduct Rhode Island taxes as self-employed?

Yes, but strategically. Self-employed individuals can deduct half of self-employment tax (Schedule 1). Additionally, estimated tax payments for Rhode Island state income tax count toward itemized SALT deductions. Coordinate with your overall tax strategy to maximize both deductions.

Should my Providence LLC convert to S Corp status?

Potentially. S Corp elections save self-employment tax on distributions but require quarterly estimated taxes and more complexity. For income above $80,000, the savings often justify the additional compliance. Run specific numbers with a tax professional—every situation is unique based on business structure, income, and deductions claimed.

What if I’m a W-2 employee—does the new deduction help me?

If you earn overtime, tips, or drive a financed US-made vehicle, yes. These new deductions are available to W-2 employees earning below phaseout thresholds. Additionally, the increased standard deduction benefits all filers. Consult a tax professional to identify whether these new deductions apply specifically to your employment situation.

When should I start 2026 tax planning?

NOW. January is optimal. Waiting until March or April leaves minimal time to implement entity changes, model scenarios, or execute strategic moves. Many valuable strategies require advance planning and documentation. The earlier you engage, the more optimization options remain available.

How does pass-through entity election work for my Providence LLC?

Some states allow entities to elect to pay taxes at the entity level, absorbing state income taxes that you then deduct individually. This can increase SALT deduction availability by moving taxes from individual returns to entity-level payments. Availability varies by state. Consult Rhode Island-specific tax guidance or a local professional to determine if your LLC qualifies.

What’s the difference between standard deduction and itemizing?

The standard deduction is a fixed amount ($31,500 for married filers in 2026) that reduces taxable income automatically. Itemizing means adding up deductible expenses (SALT, mortgage interest, charitable contributions) to exceed the standard deduction. Choose whichever results in greater total deductions. With the higher 2026 standard deduction, fewer filers benefit from itemizing unless they have substantial SALT or charitable deductions.

How does required minimum distribution (RMD) planning work?

Starting at age 73, the IRS requires withdrawals from traditional IRAs and retirement accounts. These withdrawals are taxable and can push you into higher brackets or trigger Medicare premium increases. Roth conversions in earlier years, strategic withdrawal timing, and charitable contribution strategies can all reduce RMD tax impact. Begin RMD planning no later than age 65.

Related Resources

• Comprehensive Tax Strategy Services for Business Owners
• Entity Structuring & Optimization Guidance
• Tax Planning Strategies for Business Owners
• Client Success Stories & Proven Results
• IRS Guide to Itemized Deductions

Last updated: January, 2026