Ask My Accountant

Practical answers for professional women business owners who want clear records and fewer last-minute tax questions.

 

By Diyora Abdullaeva, MBA, Master of Accountancy | Reviewed October 13, 2026

 

2026 IRS Mileage Rates

Your business mileage has two rates in 2026: 72.5 cents per mile for January 1–June 30, and 76 cents per mile for July 1–December 31. Separate your mileage by travel date; do not apply one rate to the whole year.

 

Example: 1,000 qualifying miles in each half of the year produces $725 + $760 = $1,485 under the standard mileage method. This is a deduction calculation, not a guaranteed reimbursement or tax refund.

 

Keep a log with dates, destinations, business purpose, and miles. Ordinary commuting is generally personal. The standard rate already covers costs such as fuel, maintenance, and depreciation, so those costs are not deducted again under this method. Business parking and tolls may be separate.

 

Review whether your vehicle qualifies for the standard mileage method or requires actual expenses. If your company reimburses you, agree on the documentation and reimbursement process with your tax professional.

 

Official sources: IRS mileage rates and IRS business use of car.

 

2026 Form 1099-NEC: Who Must File, Payment Methods, and Deadlines

For payments made in 2026, the general reporting threshold for nonemployee services is $2,000 per recipient. The $600 threshold applies to payments made before 2026. Not every vendor requires a 1099.

 

Review the service, the recipient’s tax classification, and the payment method. Individuals and partnerships generally qualify; corporations are generally exempt, with exceptions such as attorneys’ fees. Backup withholding can require filing regardless of amount. Collect Form W-9 and reconcile vendor totals before year-end.

 

Cash, checks, ACH, and direct bank transfers generally remain in your reporting review. Zelle does not issue Form 1099-K, so qualifying Zelle service payments may require your 1099-NEC. Payments settled through cards or qualifying third-party payment networks belong under the settlement entity’s 1099-K rules, rather than being duplicated on your 1099-NEC. An app’s name alone does not determine treatment.

 

For 2026 payments, file with the IRS and furnish recipient copies by February 1, 2027: January 31 falls on Sunday. Review special cases and separate state requirements before filing.

 

Official sources: IRS 1099-MISC/NEC instructions and Zelle reporting FAQ.

 

2026 Michigan Sales and Use Tax: Requirements and Due Dates

Michigan generally imposes 6% sales tax on taxable retail sales of tangible personal property. Use tax can apply to taxable purchases used in Michigan when the seller did not collect tax. A service business should still review its purchases, product sales, and any taxable services.

 

Register for the applicable taxes and follow the filing frequency assigned by Michigan Treasury. Monthly returns are generally due on the 20th of the following month; quarterly returns on the 20th of the month after the quarter. Weekend and state-holiday deadlines move to the next business day.

 

Examples for 2026 quarterly periods: Q1 April 20, Q2 July 20, Q3 October 20, and Q4 January 20, 2027. All sales, use, and withholding taxpayers must also file an annual return. The 2026 Form 5081 lists February 28, 2027; because that is Sunday, the general weekend rule moves the deadline to March 1, 2027. The annual return does not replace monthly or quarterly returns.

 

Accelerated filers have additional payment rules. Reconcile taxable sales, exemptions, tax collected, and untaxed purchases before filing through Michigan Treasury Online.

 

Official sources: Michigan sales and use tax, filing deadlines, and 2026 Form 5081.

 

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These articles provide general educational information. Your filing obligations depend on your business and transactions; confirm your specific treatment with your tax professional.