US edition
US Self-Employed & Small Business Finance
Straight-answer guides for Americans who work for themselves: self-employment tax, quarterly estimates, the QBI deduction and the solo retirement accounts. Each one leads with the facts and cites the IRS.
Tax
QBI Deduction in 2026: The 20% Pass-Through Rule, Now Permanent
The qualified business income (QBI) deduction lets sole proprietors, partners and S corporation owners deduct up to 20% of qualified business income from taxable income. The One Big Beautiful Bill Act made it permanent, and for 2026 the limits phase in above $201,750 of taxable income, or $403,500 married filing jointly.
Read the guideQuarterly Estimated Taxes 2026: Due Dates, Safe Harbors and How to Pay Online
You must pay quarterly estimated taxes if you expect to owe $1,000 or more when you file, after withholding and credits. For the 2026 tax year the deadlines are April 15, June 15 and September 15, 2026, and January 15, 2027. Paying 100% of last year's tax (110% for higher earners) avoids any penalty.
Read the guideSchedule C Tax Form Explained: Profit or Loss From Business, Line by Line
Schedule C is the tax form sole proprietors and most single-member LLC owners attach to Form 1040 to report profit or loss from a business. Gross receipts go in Part I, expenses in Part II, and the net profit flows to Schedule SE for self-employment tax and to your 1040 for income tax.
Read the guideSelf-Employment Tax in 2026: The 15.3% Explained with a Worked Example
Self-employment tax is 15.3% of net earnings: 12.4% for Social Security on the first $184,500 in 2026, plus 2.9% for Medicare with no cap. It applies to 92.35% of your net profit once net earnings reach $400, and you deduct half of the tax when figuring adjusted gross income.
Read the guideRetirement Planning
SEP IRA vs Solo 401(k): Which Shelters More for the Self-Employed in 2026?
For most self-employed people with no employees, a solo 401(k) shelters more than a SEP IRA in 2026. Both cap total contributions at $72,000, but the solo 401(k) adds a $24,500 employee deferral on top of the 25% employer share, plus catch-ups and a Roth option. A SEP takes employer contributions only.
Read the guideSolo 401(k) Contribution Limits 2026: Both Buckets, One Worked Example
The solo 401(k) contribution limit for 2026 is $72,000 combined: up to $24,500 in employee deferrals plus an employer contribution of up to 25% of compensation. Savers aged 50 and over add an $8,000 catch-up, or $11,250 at ages 60 to 63, lifting the ceiling to $80,000 or $83,250.
Read the guideWhat Is a Solo 401(k)? The One-Participant Plan Explained for 2026
A solo 401(k) is a one-participant 401(k) plan for a business owner with no employees, plus a spouse who works in the business. For 2026 you can contribute up to $24,500 as the employee and up to 25% of compensation as the employer, capped at $72,000 combined before catch-ups.
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