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Delaware Tax Law Update

• Aug 19, 2025 wisecpa

Understanding the New 2025 Tax Law: What Delaware Small Business Owners Need to Know

Staying compliant with tax laws is a critical part of running a successful small business — but it doesn’t have to be overwhelming. The recently passed One Big Beautiful Bill Act of 2025 (OBBBA) brings several updates designed to make tax compliance easier for entrepreneurs. If you own a small business in Delaware and rely on a small business accountant like Wise Business Solutions, here’s what you need to know about how the new law benefits you.

Higher 1099 Reporting Thresholds = Less Paperwork

Good news for anyone tired of paperwork! Starting January 1, 2026, the threshold for issuing Form 1099-NEC and 1099-MISC jumps from $600 to $2,000. This means fewer vendor 1099s to generate — and less administrative headache.

Tip from your Delaware accounting pros: Make sure your accounting software tracks individual vendor payments so you don’t accidentally trigger a form you don’t need. And yes, still collect W-9s from ALL vendors upfront — it’s the easiest way to stay prepared.

Form 1099-K Threshold Rolls Back to $20,000

The IRS has walked back the previously planned $600 threshold. For third-party platforms like Venmo, PayPal, or Square, you’ll now receive a 1099-K only if you process over $20,000 and more than 200 transactions.

Wise Business Solutions suggests: Don’t assume “no form” means “no tax.” You’re still responsible for reporting every dollar of business income — especially if you mix personal and business transactions. (Seriously, stop doing that.)

QBI Deduction Made Permanent

The powerful 20% Qualified Business Income (QBI) deduction is now permanent, with a new minimum benefit of $400 for anyone with at least $1,000 of eligible income.

Most Delaware small business owners, gig workers, and independent contractors qualify automatically — unless you work in a “specified service” field like law, medicine, accounting, or finance. In those industries, the deduction phases out once income exceeds $197,300 (single) or $394,600 (married filing jointly).

Bigger Deductions with Section 179 & Bonus Depreciation

Need new equipment, technology, or tools? 2025 is your year.

• Section 179 deduction limit: increases to $2.5 million

• Bonus depreciation: back to 100% write-off for qualified purchases from January 19, 2025, through 2029

These tools let you deduct major asset purchases immediately rather than depreciating them over several years — helping you grow your business while saving on taxes.

Bottom Line?

The new tax bill gives small business owners more flexibility, bigger deductions, and fewer compliance headaches — if you know how to take advantage of it. Working with a small business accountant like Wise Business Solutions ensures your Delaware business stays ahead of the IRS while maximizing every dollar.

Not sure how these changes affect your business? Book a consultation with Wise Business Solutions and get proactive guidance tailored to your goals.

Want to stay updated on tax law changes that impact Delaware accounting and small business owners? Follow Wise Business Solutions for more smart strategies to keep more of what you earn.