Tax Planning
Strategic tax planning, quarterly estimates, and S-Corp analysis for US-based solopreneurs.
Free
Works with the AI tools you already use
Tax Planning
Example session with this skill installed
I'm a solopreneur with an LLC. I expect to make $120,000 in profit this year. Should I switch to an S-Corp, and how much should I pay for Q3 taxes?
- Read your context and instructions
- Compiled the tax planning
I have analyzed your projected profit of $120,000. Based on your LLC status, switching to an S-Corp is likely beneficial, and I have calculated your Q3 estimated payment below.
Tax Strategy and Quarterly Estimate
| Metric | Sole Proprietor / LLC | S-Corp Election (Proposed) |
|---|---|---|
| Total Profit | $120,000 | $120,000 |
| Reasonable Salary | N/A | $70,000 |
| Self-Employment Tax | $18,360 | $10,710 |
| Distributions | $120,000 | $50,000 |
| Estimated Annual Savings | $0 | $7,650 |
Q3 Estimated Tax Payment (LLC Status)
To avoid IRS underpayment penalties for the September 15 deadline:
- Projected Annual Tax: ~$38,400 (Combined Federal + SE Tax at ~32% effective rate)
- Quarterly Payment: $9,600
Deduction Opportunities
- Home Office: If you use 200 sq ft exclusively for work, claim the $1,000 simplified deduction.
- Section 179: Plan any major hardware purchases (laptops, servers) before Dec 31 for full immediate expensing.
Solo 401(k): You can contribute up to $23,000 plus 25% of net earnings to significantly lower your taxable income.
Next steps
- Consult a CPA to confirm the "reasonable salary" for your specific industry before filing Form 2553.
- Open a dedicated tax savings account and immediately transfer 30% of all incoming revenue.
- Pay Q3 taxes via IRS Direct Pay by September 15.
Connects securely to your tools. The creator never sees your data.
About this skill
Solopreneurs often get crushed by unexpected tax bills or underpayment penalties because they lack a clear withholding and deduction strategy. This skill provides a structured framework for managing US-based tax obligations, ensuring you keep more of your revenue while staying compliant with the IRS.
What it does
- Tax liability projection calculates effective tax rates including federal, state, and self-employment taxes.
- Quarterly payment scheduling determines exact deadlines and payment amounts to avoid underpayment penalties.
- Deduction optimization identifies specific business write-offs like home office, Section 179 equipment, and travel.
- S-Corp analysis evaluates if your profit margins justify electing S-Corp status to reduce self-employment tax.
- Year-end planning provides a strategic checklist for accelerating expenses or deferring income to minimize annual liability.
How it works
- Assess entity type to define the specific tax brackets and self-employment rates applicable to your business.
- Calculate quarterly estimates by projecting annual profit and applying the safe harbor rule.
- Audit deductions using the simplified or actual expense methods for office and vehicle costs.
- Strategize retirement by comparing Solo 401(k) and SEP-IRA contribution limits based on net earnings.
Frameworks & tools
This skill is designed for US-based solopreneurs, LLCs, and S-Corps. It follows IRS guidelines for estimated taxes, Section 179 deductions, and standard mileage rates.
Why this beats prompting it yourself
Generic AI prompts often miss the nuances of self-employment tax or the safe harbor rule. This skill uses specific formulas for effective tax rates and S-Corp breakeven points that most general models overlook without structured guidance.
Use cases
- Determine how much to set aside from a new $10,000 client payment.
- Calculate the tax savings of switching from a sole proprietorship to an S-Corp.
- Build a Q4 checklist to lower your taxable income before December 31.
- Compare home office deduction methods to maximize your return.
Known limitations
Does not provide professional legal or tax advice. Limited to US federal and general state tax logic. Does not integrate directly with accounting software or bank APIs.
How to install
Works the same in every agent - Claude, Cursor, Codex, Copilot and 20+ more.
- 1
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Unzip into your skills folder
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