Determine gross income: $375,500
Gather and categorize business expenses: It’s important for Sarah to keep detailed records of all her income and expenses throughout the year and to consult with a tax professional to ensure she’s claiming all eligible deductions and complying with tax regulations. All of Sarah’s expenses fall under operating expenses.
Calculate your Net Business Income: Total Gross Income – Total Expenses = $294,920
Disclaimer: This self-employment tax estimator is provided for illustrative purposes only and should be used solely as a tool to help guide users in estimating their potential tax obligations. The information provided by this estimator does not constitute tax advice. The accuracy of the numbers generated by this estimator cannot be guaranteed. For professional tax advice and guidance, please consult with a qualified Certified Public Accountant (CPA) or tax professional. Do not rely solely on the estimates provided by this tool when making tax-related decisions or filings.