Tax guides for the self-employed
Plain-English explanations of the tax rules behind our calculators: self-employment tax, S-Corp elections, 1099 contracts, retirement plans and deductions. Every guide is updated for the 2026 tax year and links to a calculator so you can try the numbers yourself.
Self-employment tax
Self-employment tax in 2026: rates, wage base and how to calculate itHow the 15.3% self-employment tax works in 2026: the Social Security wage base, the 92.35% rule, the half-SE-tax deduction and a worked example.Quarterly estimated taxes for 2026: due dates, safe harbor and how much to payWhen 2026 quarterly estimated tax payments are due, how much self-employed people should pay, and how the safe harbor rules help you avoid IRS penalties.The QBI deduction for self-employed people, explained (2026)How the 20% Qualified Business Income deduction works for freelancers and S-Corp owners in 2026: income limits, specified service businesses and an example.
S-Corp
When should you elect S-Corp status? A break-even guideAt what profit does an S-Corp election save money? See how salary, payroll taxes, QBI and running costs set your break-even, with worked examples.How to set a reasonable salary for your S-CorpWhat the IRS means by reasonable compensation for S-Corp owners, the factors it weighs, how to use market wage data, and the mistakes that trigger audits.How to file Form 2553: S-Corp election deadlines and late reliefWho can elect S-Corp status, the Form 2553 deadline (2 months and 15 days), how LLCs file, shareholder consents, and how to get relief for a late election.The real cost of running an S-Corp: payroll, 1120-S and state feesWhat an S-Corp really costs each year: payroll service, Form 1120-S preparation, unemployment taxes, state franchise taxes and a smaller QBI deduction.LLC vs S-Corp: what's the difference for taxes?An LLC is a legal entity and an S-Corp is a tax election, so you can have both. Learn how LLCs are taxed by default and when adding an S-Corp election helps.
1099 vs W-2
1099 vs W-2: how taxes differ for contractors and employeesHow taxes differ for 1099 contractors and W-2 employees: payroll tax, withholding, deductions, QBI, benefits and why equal pay rarely means equal take-home.How to convert a salary to a 1099 contractor hourly rateTurn a W-2 salary into an equivalent 1099 hourly rate: account for self-employment tax, benefits, unpaid time off, expenses and realistic billable hours.
Retirement & deductions
Solo 401(k) vs SEP IRA in 2026: limits and which to chooseCompare Solo 401(k) and SEP IRA contribution limits for 2026, how self-employed and S-Corp owners calculate contributions, deadlines and paperwork.Tax deductions for self-employed people: a practical checklistA checklist of common self-employed tax deductions: home office, vehicle, equipment, health insurance, retirement and more, plus what you cannot deduct.