Effective Jan. 1, 2026, the following Service and Other Activities B&O tax classifications have been renamed as follows:
- If you (or your affiliated group) have taxable income under $1,000,000 that was subject to the Service and Other Activities B&O tax classification in the prior calendar year, you will now report under the Service and Other Activities (Less than $1,000,000 in the prior year) B&O tax classification.
- If you (or your affiliated group) have taxable income from $1,000,000 to $4,999,999 that was subject to the Service and Other Activities ($1 million or greater in prior year) B&O tax classification in the prior year, you will now report under the Service and Other Activities ($1,000,000 to $4,999,999 in the prior year) B&O tax classification.
- The Service and Other Activities ($5,000,000 or More in the prior year) B&O tax classification will remain the same in 2026.
Please note: If you previously reported under the combined Service & Other Activities and/or Gambling Contests of Chance (less than $50,000 a year) B&O tax classification and you have gross income from gambling activities less than $50,000 per year, you must begin reporting it under the Gambling Contests of Chance (less than $50,000 a year) B&O tax classification.
If your gross income from gambling activities is greater than or equal to $50,000, you will continue to report under the Gambling Contests of Chance ($50,000 a year or greater) B&O tax classification.
To add the new classification to your return:
- Select Add/Delete Tax Classifications on the Select Taxes page of the return.
- Select Gambling Contests of Chance (less than $50,000 a year).
- Select Next to continue.
Need help? You can call DOR at 360-705-6705.
To learn more, or if you need help with DOR tax guidance, go to to https://martinkreshon.com or call us at 206-929-0609. You can also find reviews for Martin on Google and Avvo.