Track calculates the taxes you owe on your 1099 incomes based upon your unique tax profile.
Which taxes does Track calculate?
Track calculates both Federal and State taxes on your Self-employment (1099) income. This includes FICA, Medicare, and Federal income tax.
What Income does Track use to make tax calculations?
Track imports your income and expense transactions from your bank account, or transactions you've entered manually.
Why is my tax rate 0%?
This can happen if your business and/or mileage deductions is greater than your 1099 income. It can also happen if your income level hasn't reached the state/federal standard deduction.
My tax amount doesn't look correct...
Track grabs the tax calculations straight from the tax forms. If your tax amounts don't look correct, make sure that the data in Track represents your financial state. Here are some things you should look for:
- Check that all income/expenses/mileage is categorized correctly.
- Ensure that previous quarterly tax payments are recorded.
- If you earn W2 income in addition to self-employment income, be sure to enter it into your "Tax Info".
- Make sure your filing status is correct (single, married, etc.).
Does Track take business expense deductions into account?
Yes! Track takes your deduction through business expenses into consideration when calculating all taxes. However, we can only consider business expenses that have been added to Track.
It’s important to note that Track can’t yet calculate taxes for every tax circumstance. Some examples of situations we don’t take into account:
- Capital gains/losses on investments
- Multiple states
- Social Security Income
- Balance due for previous tax years
If you have a special tax circumstance, we can connect you with a CPA in our network. Contact us if you aren’t sure whether or not we can cover your situation.