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Welcome to Tax Buddy! Let's make taxes less terrible together.

Welcome to Tax Buddy!

Hey there! We know taxes are about as fun as stepping on a LEGO, but we've got your back. This app breaks down everything you need to know about your 2025 taxes — from your K-1 to your savings opportunities. Let's do this!

Your Numbers at a Glance

The big picture — no squinting required

Net SE Income
0
Self-Employment Tax
0
Potential Savings
0
Estimated Tax Bill
0

Explore Your Tax World

Pick a topic and dive in — no judgment, no jargon

Quick Tax Facts

income

SE Earnings (Net)

$159,352

Net self-employment earnings from K-1 Box 14A. Guaranteed payments ($175,377) minus business loss ($16,025).

income

Guaranteed Payments

$175,377

Your guaranteed payments from the partnership — like a salary, but you're paying both sides of the employment taxes. Thanks, LLC!

income

Business Loss

($16,025)

Your 42.5% share of the partnership's ordinary business loss. Nets against guaranteed payments to create your SE earnings.

tax

Self-Employment Tax

$22,513

Social Security (12.4%) + Medicare (2.9%) on 92.35% of SE earnings. The price of being your own boss AND employee.

deduction

Health Insurance Deduction

$31,377

Self-employed health insurance premiums — above-the-line deduction via Form 7206. Saves ~$7,530 at 24% bracket.

deduction

Half SE Tax Deduction

$11,256

The "employer" half of your SE tax, deductible on Schedule 1, Line 15. The IRS's way of saying they feel a little bad about the 15.3%.

deduction

QBI Loss Carryforward

($16,025)

No deduction this year (guaranteed payments excluded from QBI), but this loss carries forward to offset future positive QBI. Plant the seed!

income

Excess Distribution (Capital Gain)

$443

Distribution in excess of your $0 basis = long-term capital gain. Small amount, but a reminder: with $0 basis, every distribution is a taxable event.

tax

Estimated Federal Tax

~$49,000

Approximate total federal tax liability including income tax and SE tax, before applying deductions and credits.

savings

Potential Savings (Conservative)

$28,000

SE deductions + SEP-IRA + SALT. Low-hanging fruit that requires minimal effort. Just the basics!

savings

Potential Savings (Aggressive)

$70,000+

Includes defined benefit plan, energy credits, all deductions, and basis restoration. The full arsenal deployed.

tax

IL Estimated Tax

$7,224

Illinois flat tax (4.95%) on your K-1 income. Remember: pay this first to avoid the 10% penalty cliff!

basis

Partner Basis

$0

Your adjusted basis in the partnership is zero after the excess distribution. Handle distributions carefully — every dollar over $0 is a capital gain.

basis

Suspended Losses

$46,924

Losses waiting to be unlocked! These are suspended under IRC 704(d) because your basis is $0. Contribute capital to the LLC to restore basis and release these for ~$11,262 in federal savings.

"In this world nothing is certain except death and taxes. - Benjamin Franklin"

Tax Buddy

Made with frustration and determination

For educational purposes only. Not tax advice.