See the real profit on this month's work, not just the top line.
For sole proprietors and small firms where 'busy' doesn't always mean 'making money'. Tracks income, expenses and estimated tax for 2026, all on your device.
If you take an action based on what you read here, that action is yours. We are a guide, not an advisor, and we give this away for free.
General guidance, not tax advice. For your situation, talk to VITA, the IRS free tax preparation program (generally $69,000 or less), free for low-income tradespeople: www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers, 800-906-9887.
What the law actually says
- •As a self-employed sole proprietor you owe self-employment tax (15.3%: 12.4% Social Security up to the $184,500 wage base for 2026, plus 2.9% Medicare) on 92.35% of your net profit, on top of federal income tax.
- •Federal income tax applies at your marginal bracket after the standard deduction and the 20% QBI deduction most trades qualify for. State income tax ranges from nothing (Texas, Florida and seven others) to over 10% (California, Hawaii, New York).
- •The IRS expects it as you earn: quarterly estimated payments (1040-ES) on April 15, June 15, September 15 and January 15, not one bill at year end.