Add eligible deductions to compare the modeled tax bill.
START HERE
Test your eligible deductions
Enter deductible amounts, not personal spending.
STEP 2 · RESULT
Your estimated tax effect
Tax reduction first. Spending stays separate.
Where the tax reduction comes fromFederal income tax, self-employment tax and state taxOpen −
| Federal income tax reduction | $0 |
|---|---|
| Self-employment tax reduction | $0 |
| State income tax reduction | $0 |
| Health insurance entered | $0 |
| Estimated QBI deduction before | $0 |
| Estimated QBI deduction after | $0 |
Important: A $10,000 business expense is not a $10,000 profit. This calculator estimates the tax effect of expenses you actually incur and qualify to deduct. It does not recommend spending money just to create a deduction.
What counts as a business deduction?
The IRS generally requires a Schedule C business expense to be ordinary and necessary for the trade or business. Personal, living and family expenses are generally not deductible. Mixed-use costs such as a vehicle must be divided between business and personal use.
How health insurance is treated here
Eligible self-employed health-insurance premiums can reduce income tax, subject to eligibility and earned-income limits, but they do not reduce net earnings used to calculate self-employment tax. Premium Tax Credit interactions are outside this calculator's scope.
Why can QBI change?
Eligible business expenses can reduce qualified business income as well as taxable income. The calculator therefore recalculates the modeled QBI deduction instead of simply multiplying your deductions by a tax bracket.