Elect S-corp status
Profit above your salary avoids Social Security and Medicare tax. Keep the salary reasonable for your role.
Owner Tax Planner
Slide in your numbers, switch on strategies, and see what each one really saves. Every strategy runs through one 2026 return, so they interact the way they do in real life.
Your situation
Strategies
+$6,407
Retirement plan
Up to $24,500 plus an employer share, $72,000 total plus catch-up.
Health savings account
Requires a high-deductible health plan.
Health insurance deduction
Premiums for you and your family, deducted above the line.
Hire your children
Real work at a fair wage. Up to $16,100 per child is free of income tax.
These wages owe payroll tax; it is already subtracted.
Augusta rule
Rent your home to your S corp for up to 14 meeting days, tax-free to you.
Home office
Space used regularly and only for business.
Business mileage
72.5¢ per mile through June, 76¢ from July 1.
Expense equipment now
Cost segregation
PTET election
S-corp salary sweet spot
Savings as profit grows
Line-by-line return
| Line | No planning | With strategies | Change |
|---|---|---|---|
| Business profit | $180,000 | $180,000 | - |
| Strategy deductions | $6,000 | $34,840 | +$28,840 |
| Owner salary | $0 | $75,000 | +$75,000 |
| Schedule C / K-1 income | $174,000 | $30,755 | -$143,246 |
| SE tax / payroll tax | $24,585 | $13,311 | -$11,274 |
| Retirement contribution | $0 | $43,250 | +$43,250 |
| HSA deduction | $0 | $8,750 | +$8,750 |
| Adjusted gross income | $226,707 | $137,505 | -$89,203 |
| Deduction itemized | $37,602 | $32,250 | -$5,352 |
| QBI deduction | $32,341 | $6,151 | -$26,191 |
| Taxable income | $156,763 | $99,103 | -$57,660 |
| Child tax credit | $4,400 | $4,400 | - |
| Federal income tax | $19,512 | $6,996 | -$12,516 |
| State income tax | $13,602 | $8,250 | -$5,352 |
| S-corp cost | $0 | $2,500 | +$2,500 |
| Total tax and costs | $57,700 | $31,058 | -$26,642 |
How the planner works
No planning means a sole proprietorship with every strategy off. Strategies are added in the order listed, so the per-strategy figures add up to the total. Total tax includes federal income tax, self-employment or payroll tax, state tax at your flat rate, children's income tax, and added S-corp costs.
Not included: capital gains rates, NIIT, AMT, state-specific rules, refundable credits, and multi-owner entities.
2026 figures used
Educational estimate, not tax advice. Confirm any strategy with a CPA before acting.