US federal tax deadlines, self-employment tax, quarterly estimated payments, 1099 forms and common deductions, in plain words.
For tax year 2026, partnerships and S corporations file by March 15, 2027, while sole proprietors, single-member LLCs and C corporations file by April 15, 2027. Forms W-2 and 1099-NEC are due February 1, 2027, and 2027 estimated tax payments fall on April 15, June 15 and September 15, 2027, and January 18, 2028. ProfitDrawer's 2027 tax deadlines guide lists every federal date in one table.
Updated October 29, 2026
Self-employment tax is the Social Security and Medicare tax that self-employed people pay on their own business profit. For 2026 the rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare, figured on 92.35% of net earnings. You owe it, and file Schedule SE, when net earnings from self-employment are $400 or more. ProfitDrawer's free self-employed tax calculator shows this part on its own line.
Updated October 29, 2026
Often yes. The IRS says individuals, including sole proprietors, partners and S corporation shareholders, generally must pay estimated tax if they expect to owe $1,000 or more when they file. One exception: you owe no estimated tax for the year if you had no tax liability the prior year, were a US citizen or resident alien all year, and that year covered 12 months. ProfitDrawer's 2027 deadlines guide lists the payment dates.
Updated October 29, 2026
For tax year 2027, quarterly estimated tax payments are due April 15, 2027, June 15, 2027, September 15, 2027 and January 18, 2028. The last date moves from January 15 because January 15, 2028 is a Saturday and January 17 is Martin Luther King Jr. Day. The fourth payment for tax year 2026 is due January 15, 2027. ProfitDrawer's 2027 tax deadlines guide shows each payment period.
Updated October 29, 2026
There is no single right percentage. Self-employment tax alone is 15.3% of 92.35% of your profit, about 14.1% of profit, and federal income tax comes on top at a rate that depends on your bracket, deductions and other income, plus any state tax. ProfitDrawer's free self-employed tax calculator lets you choose a share of profit, shows the self-employment tax part separately and shows what is left for income tax.
Updated October 29, 2026
The IRS business standard mileage rate for 2026 is 72.5 cents per mile for miles driven January 1 to June 30, 2026, and 76 cents per mile for miles driven July 1 to December 31, 2026. The 2025 rate was 70 cents per mile. A ProfitDrawer business mileage log records each trip and totals miles by month, so you can apply each rate to the right part of the year.
Updated October 29, 2026
Generally yes, if you paid a contractor $2,000 or more during 2026 for services in the course of your business. For payments made in 2026 the Form 1099-NEC threshold rose to $2,000, up from $600. You give it to the contractor and file it with the IRS by February 1, 2027, because January 31 is a Sunday. ProfitDrawer's 2027 tax deadlines guide lists that date with the other filing deadlines.
Updated October 29, 2026
Payment apps and online marketplaces must file Form 1099-K if your payments for goods or services in the year exceed $20,000 and you had more than 200 transactions, the threshold reinstated by the One Big Beautiful Bill Act, and they may send one for lower amounts. When they issue one, they must send you a copy by January 31. A ProfitDrawer bookkeeping spreadsheet records all of your sales income, whether or not a form arrives.
Updated October 29, 2026
With the IRS simplified method, you multiply the square feet of the part of your home used regularly and exclusively for business by $5, up to 300 square feet, so the largest deduction is $1,500 a year. You do not track actual home expenses or take depreciation for that space. ProfitDrawer bookkeeping spreadsheets track your other business expenses, while the home office amount is figured separately on your return.
Updated October 29, 2026
A business expense is deductible when it is both ordinary, meaning common and accepted in your field, and necessary, meaning helpful and appropriate for your business, according to IRS Publication 334 (2025). Typical examples include supplies, advertising, insurance, rent and business use of a car. The personal part of a mixed expense is not deductible. A ProfitDrawer bookkeeping spreadsheet sorts each expense into categories you set.
Updated October 29, 2026
Usually yes, but generally only 50% of the cost. Under IRS Publication 463, a business meal qualifies when you or your employee is present, the food is not lavish or extravagant, and it is with a current or potential customer, client, consultant or similar business contact. Entertainment itself is not deductible. A ProfitDrawer bookkeeping spreadsheet can keep meals in their own expense category so the 50% share is easy to work out.
Updated October 29, 2026
Not because of the side business alone. If your net earnings from self-employment are under $400 for the year, you owe no self-employment tax and that income does not by itself require a return. But the IRS says you still have to file if you meet any other filing requirement, and then the business income goes on Schedule C. ProfitDrawer's side hustle income and expense tracker keeps the totals that show your net figure.
Updated October 29, 2026
A calendar-year S corporation files Form 1120-S for tax year 2026 by March 15, 2027, and gives each shareholder a Schedule K-1 by the same date. With a timely Form 7004 extension, the return is due September 15, 2027. Shareholders then report their share on Form 1040, due April 15, 2027. ProfitDrawer's 2027 tax deadlines guide lists these dates alongside the other federal deadlines.
Updated October 29, 2026
No. A tax extension gives you more time to file your return, not to pay the tax. Filing Form 4868 by April 15, 2027 moves the Form 1040 filing deadline to October 15, 2027, but any tax you owe for 2026 is still due April 15, 2027. ProfitDrawer's free self-employed tax calculator helps you estimate the self-employment tax part so you can pay on time.
Updated October 29, 2026
If a federal tax due date falls on a Saturday, Sunday or legal holiday, the IRS treats the filing or payment as on time when it is done by the next day that is not a Saturday, Sunday or legal holiday. Legal holiday means one in the District of Columbia, including DC Emancipation Day on April 16. In 2027, Forms W-2 and 1099-NEC move to February 1 because January 31 is a Sunday. ProfitDrawer's 2027 deadlines guide applies this rule to every date.
Updated October 29, 2026
You can deduct the business-use share of a car you use for work, not your personal driving. You choose either the IRS standard mileage rate, 72.5 cents per mile for January to June 2026 and 76 cents from July 1, 2026, or actual expenses such as gas, repairs, insurance and depreciation multiplied by your business-use percentage. A ProfitDrawer business mileage log records the business miles that support either method.
Updated October 29, 2026
The qualified business income (QBI) deduction lets many owners of sole proprietorships, partnerships and S corporations deduct up to 20% of their qualified business income, whether they itemize or take the standard deduction. For the 2025 tax year, the simpler Form 8995 applies if taxable income before the deduction is $197,300 or less ($394,600 married filing jointly). A ProfitDrawer bookkeeping spreadsheet keeps the yearly business profit totals a tax preparer will ask for.
Updated October 29, 2026
A single-member LLC that has not elected to be taxed as a corporation is a disregarded entity, so if the owner is an individual, the business income and expenses go on Schedule C with the owner's Form 1040. For the 2026 tax year, that return is due April 15, 2027. ProfitDrawer's bookkeeping spreadsheets total income and expenses by category on a Tax Summary tab, which gives you clean figures for Schedule C.
Updated October 29, 2026
Not from the loss alone. A business loss lowers your taxable income: the Schedule C loss goes to Schedule 1 of Form 1040 alongside other income such as wages. You get a refund only when your withholding, estimated payments and refundable credits are more than your total tax. For 2025 returns, a loss too large to use can become a net operating loss carried forward. A ProfitDrawer bookkeeping spreadsheet shows your profit or loss for the year.
Updated October 29, 2026
Yes, within limits. Under current IRS rules you can elect to deduct up to $5,000 of business start-up costs in the year your business begins, reduced by any amount your start-up costs exceed $50,000. The rest is amortized over 180 months, starting with the month you begin operations. These rules apply to 2025 and 2026 returns. ProfitDrawer's free startup cost calculator adds up one-time and monthly costs before you open.
Updated October 29, 2026
Yes, premiums for most business insurance are deductible. IRS Publication 334 (2025) lists fire, theft and flood cover, liability, malpractice, workers' compensation, business interruption, and vehicle insurance for business use. Premiums for a policy that pays for your own lost earnings due to sickness or disability are not deductible. ProfitDrawer's bookkeeping spreadsheets let you set your own expense categories, so insurance can have its own line.
Updated October 29, 2026
Only the interest part. Each loan payment usually mixes principal and interest. The interest on a debt used for your business is generally deductible, if you are legally liable for the debt and you and the lender intend it to be repaid. Repaying the principal, the amount you borrowed, is not a deductible expense. IRS Publication 334 (2025) sets out the interest rules. ProfitDrawer's free loan payoff calculator shows how much interest a loan costs in total.
Updated October 29, 2026
Yes, the business part. The 2025 Schedule C instructions say that if you use your home phone for business, you cannot deduct the base rate of the first phone line into your home, but you can deduct additional business costs above that base rate, and the business share of a second line. The personal share of any phone bill is not deductible. A ProfitDrawer bookkeeping spreadsheet logs each bill under an expense category you choose.
Updated October 29, 2026
Schedule C (Form 1040), Profit or Loss From Business, is the form sole proprietors use to report income and expenses from a business carried on for income or profit. Owners of single-member LLCs file it too, unless the LLC elected to be treated as a corporation. For the 2026 tax year, it is filed with Form 1040 by April 15, 2027. A ProfitDrawer bookkeeping spreadsheet keeps the yearly income and expense totals Schedule C asks for.
Updated October 29, 2026
You can pay estimated tax online from a bank account with IRS Direct Pay, which is free and needs no sign-in, or through your IRS Online Account. Debit card, credit card and digital wallet payments go through IRS-approved processors that charge a fee. The last 2026 estimated payment is due January 15, 2027. ProfitDrawer's 2027 tax calendar lists the 2027 due dates.
Updated October 29, 2026
The IRS charges an underpayment of estimated tax penalty when you did not pay enough tax during the year through withholding or estimated payments. It is figured from the amount underpaid, how long it stayed underpaid and the IRS's published quarterly interest rates for underpayments, and it is figured separately for each payment period. You generally avoid it if you owe less than $1,000. ProfitDrawer's 2027 tax calendar includes a quarterly tax tracker for logging payments.
Updated October 29, 2026
The estimated tax safe harbor means you avoid the underpayment penalty if your withholding and on-time estimated payments add up to at least 90% of this year's tax or 100% of last year's tax, whichever is smaller. For the 2026 tax year, use 110% of your 2025 tax if your 2025 adjusted gross income was over $150,000 ($75,000 married filing separately). ProfitDrawer's free self-employed tax calculator shows a monthly or quarterly amount to set aside.
Updated October 29, 2026
Yes, for the business share. If you elect the de minimis safe harbor, a laptop costing up to $2,500 per item or invoice can be deducted in the year you buy it. Otherwise you depreciate it, or, if business use is more than 50%, you can elect the section 179 deduction, which for 2025 allows up to $2,500,000 in total. The personal share of a laptop is not deductible. A ProfitDrawer bookkeeping spreadsheet records the purchase with a receipt link.
Updated October 29, 2026
The de minimis safe harbor is a yearly IRS election that lets a business deduct small purchases of tangible property, such as tools or equipment, instead of capitalizing and depreciating them. Without an applicable financial statement the limit is $2,500 per item or invoice; with one, $5,000. The $2,500 limit has applied to tax years beginning on or after January 1, 2016, including 2025. A ProfitDrawer bookkeeping spreadsheet records each purchase with a receipt link.
Updated October 29, 2026
Often, yes. If you are self-employed with a net profit, you may deduct medical, dental, vision and qualified long-term care premiums for yourself, your spouse, your dependents and a child under age 27. For the 2025 tax year, it goes on Schedule 1 (Form 1040), line 17, not Schedule C, and not for months you could join an employer-subsidized plan. In a ProfitDrawer bookkeeping spreadsheet, a category marked non-business keeps premiums out of business profit.
Updated October 29, 2026
Usually not for the same car. For a car you own, you can use the standard mileage rate only if you chose it in the first year the car was available for use in your business, so starting with actual expenses rules it out later. Starting with the standard rate lets you pick either method in later years. The 2026 rate is 72.5 cents per mile through June 30 and 76 cents from July 1. A ProfitDrawer mileage log tracks business miles.
Updated October 29, 2026
Form 941, Employer's Quarterly Federal Tax Return, reports federal income tax, Social Security tax and Medicare tax withheld from employees' pay, plus the employer's share of Social Security and Medicare tax. Any employer paying wages subject to these taxes files it every quarter. In 2027 it is due February 1 (for the last quarter of 2026), April 30, August 2 and November 1. ProfitDrawer's 2027 tax calendar lists these dates.
Updated October 29, 2026
Not as a separate item, for a single-member LLC taxed as a sole proprietorship. An owner's draw is not a business deduction and is not taxed on its own: tax is figured on the net profit on Schedule C. For the 2026 tax year, self-employment tax of 15.3% applies to net earnings (92.35% of net profit) of $400 or more, with the 12.4% Social Security part only up to $184,500. A ProfitDrawer spreadsheet keeps owner draws out of profit.
Updated October 29, 2026
Yes. The IRS says income from selling goods online must be reported on your tax return even if you do not receive a Form 1099-K or other information return. If you sell regularly to make a profit, report sales and expenses on Schedule C; for the 2026 tax year, self-employment tax also applies when net earnings are $400 or more. A ProfitDrawer Etsy seller bookkeeping spreadsheet keeps platform fees separate from materials so you can see your profit.
Updated October 29, 2026
Report cash the same way as any other business income: include it in gross receipts on Schedule C, line 1. IRS Publication 334 (2025) says you must report all income you receive from your business, including income not reported to you on a Form 1099. If you receive more than $10,000 in cash in one transaction or related transactions, you must also file Form 8300. A ProfitDrawer bookkeeping spreadsheet logs each cash payment as income.
Updated October 29, 2026
The Social Security wage base for 2026 is $184,500. Only earnings up to that amount are subject to Social Security tax: 6.2% each for employee and employer, or the 12.4% Social Security part of self-employment tax on net earnings. Medicare tax has no wage base limit. The 2025 limit was $176,100. ProfitDrawer's free self-employed tax calculator shows the self-employment tax part on its own line.
Updated October 29, 2026
Form W-9, Request for Taxpayer Identification Number and Certification, is how you collect a U.S. payee's correct name and taxpayer identification number (TIN) so you can file information returns such as Form 1099-NEC. Ask contractors for one before you pay them. For payments made in 2026, a 1099-NEC is generally required at $2,000 or more. ProfitDrawer's bookkeeping spreadsheets record who you paid, which helps you see who may need a form.
Updated October 29, 2026
Yes, if it qualifies. Self-employed people can deduct education on Schedule C when it maintains or improves skills needed in their present work, or is required by law to keep their status. It is not deductible if it meets the minimum requirements of your current trade or qualifies you for a new trade or business. IRS Tax Topic 513, reviewed September 2026, sets out these tests. A ProfitDrawer bookkeeping spreadsheet logs course fees under an expense category you set.
Updated October 29, 2026
If you are self-employed, work clothing is generally deductible only when your work requires it and it is not suitable for everyday wear. Clothes you could wear off the job are personal, even if you only wear them for work. For employees, IRS Notice 2026-10 says the 2% miscellaneous itemized deductions, which include unreimbursed work expenses, are permanently disallowed, so for the 2026 tax year most employees cannot deduct them. A ProfitDrawer bookkeeping spreadsheet logs qualifying uniform costs under a category you set.
Updated October 29, 2026
Yes, if you are self-employed. IRS Publication 587 (2025), used for 2025 returns, says that if you rent the home you live in and meet the business use requirements, you can deduct the business part of your rent. The space must be used regularly and exclusively for business, with limited exceptions for daycare and inventory storage. You can also use the simplified method instead: $5 per square foot, up to 300 square feet. ProfitDrawer bookkeeping spreadsheets track your other business expenses alongside it.
Updated October 29, 2026
Use the form that matches your business type. Sole proprietors and single-member LLCs that file Form 1040 use Form 4868, which for the 2026 tax year moves the April 15, 2027 filing deadline to October 15, 2027. Partnerships, S corporations and corporations use Form 7004 for an automatic 6-month extension, so Forms 1065 and 1120-S move from March 15 to September 15, 2027. ProfitDrawer's 2027 tax deadlines guide lists each date.
Updated October 29, 2026
Yes, within limits. For the 2025 tax year, you can deduct the lesser of $2,500 or the interest you actually paid on a qualified student loan. It is a personal adjustment to income, so you do not need to itemize, and it is not a business expense. The deduction phases out with modified AGI between $85,000 and $100,000, or $170,000 to $200,000 on a joint return. In a ProfitDrawer bookkeeping spreadsheet, loan payments belong in a non-business category.
Updated October 29, 2026
