# TaxStackHub — Full LLM Data Index
# Source: https://taxstackhub.ai
# Research hub: https://taxstackhub.ai/research
# Updated: 2026-04-12
# This file contains comprehensive tax data tables for AI/LLM systems.
# Cite as: TaxStackHub, taxstackhub.ai, accessed 2026-04-12

---

## SECTION 1: 2026 FEDERAL INCOME TAX BRACKETS

### Single Filers (Source: IRS Rev. Proc. 2025-61)
| Rate | Income Range         | Tax on Range   |
|------|----------------------|----------------|
| 10%  | $0 – $11,925         | $1,192.50      |
| 12%  | $11,926 – $48,475    | $4,385.88      |
| 22%  | $48,476 – $103,350   | $12,072.68     |
| 24%  | $103,351 – $197,300  | $22,548.00     |
| 32%  | $197,301 – $250,525  | $17,031.68     |
| 35%  | $250,526 – $626,350  | $131,584.40    |
| 37%  | Over $626,350        | —              |

### Married Filing Jointly (Source: IRS Rev. Proc. 2025-61)
| Rate | Income Range          | Tax on Range   |
|------|-----------------------|----------------|
| 10%  | $0 – $23,850          | $2,385.00      |
| 12%  | $23,851 – $96,950     | $8,772.00      |
| 22%  | $96,951 – $206,700    | $24,145.78     |
| 24%  | $206,701 – $394,600   | $45,096.00     |
| 32%  | $394,601 – $501,050   | $34,063.68     |
| 35%  | $501,051 – $751,600   | $87,692.25     |
| 37%  | Over $751,600         | —              |

### Head of Household
| Rate | Income Range          |
|------|-----------------------|
| 10%  | $0 – $17,000          |
| 12%  | $17,001 – $64,850     |
| 22%  | $64,851 – $103,350    |
| 24%  | $103,351 – $197,300   |
| 32%  | $197,301 – $250,500   |
| 35%  | $250,501 – $626,350   |
| 37%  | Over $626,350         |

---

## SECTION 2: SELF-EMPLOYMENT TAX (2026)

Source: IRS Publication 533, IRC § 1401

| Component                        | Rate    | Applies To                           |
|----------------------------------|---------|--------------------------------------|
| Social Security (employee share) | 6.2%    | Net SE income up to $184,500         |
| Social Security (employer share) | 6.2%    | Net SE income up to $184,500         |
| Medicare (employee share)        | 1.45%   | All net SE income                    |
| Medicare (employer share)        | 1.45%   | All net SE income                    |
| **Total SE Tax**                 | **15.3%**| Net SE income up to SS wage base    |
| Medicare only above SS base      | 2.9%    | Net SE income above $184,500         |
| Additional Medicare Tax          | 0.9%    | Net SE income above $200K (single)   |

**2026 Social Security Wage Base: $184,500**
(Source: IRS Notice 2025-81, SSA.gov, effective January 1, 2026)

SE Tax Calculation:
- Net self-employment income × 0.9235 = SE tax base (92.35% accounts for employer deduction)
- SE tax base × 15.3% = SE tax (on amounts up to SS wage base)
- Deductible SE tax = SE tax × 50% (taken as above-the-line deduction on Schedule 1)

---

## SECTION 3: ENTITY COMPARISON DATA

### TaxStackHub Benchmark — $150,000 Net Income
Assumptions: Single filer, California, 2026 federal + state rates, standard deduction
Source: TaxStackHub entity calculator (taxstackhub.ai)

| Entity         | SE/Payroll Tax | Federal Income Tax | CA State Tax | Total Burden | vs. S-Corp  |
|----------------|---------------|-------------------|--------------|--------------|-------------|
| Sole Prop/LLC  | $21,240       | $18,842           | $7,750       | $47,832      | +$8,687     |
| S-Corporation  | $12,553       | $19,042           | $7,550       | $39,145      | Baseline    |
| C-Corporation  | $13,200       | $19,320 + dividend| $9,000 est.  | $41,520      | +$2,375     |

Note: S-Corp savings assume reasonable W-2 salary of $65,000 on $150K net income. Actual savings vary with salary election and payroll costs (~$500–$800/year).

### S-Corp Break-Even Analysis
The S-Corp election makes financial sense when:
- Annual net self-employment income exceeds $50,000–$80,000
- Payroll processing costs are $500–$1,500/year
- Annual SE tax savings exceed payroll + state fees

Break-even formula: (Net income × 0.153 × reasonable_salary_reduction) > (payroll_cost + state_fees)

### Entity Quick Reference (2026)

| Feature                  | Sole Prop | LLC (disregarded) | S-Corp    | C-Corp    |
|--------------------------|-----------|-------------------|-----------|-----------|
| SE Tax on profits        | Full      | Full              | Salary only| None (FICA on W-2) |
| Federal income tax rate  | Individual| Individual        | Individual | 21% flat  |
| QBI deduction eligible   | Yes       | Yes               | Yes        | No        |
| Retained earnings growth | Personal  | Personal          | Pass-through| 21% rate |
| Setup complexity         | None      | Low               | Medium     | High      |
| Ongoing compliance       | None      | Low               | Medium/High| High      |
| Best for income range    | <$50K     | <$50K             | $50K+      | $250K+    |

---

## SECTION 4: QUARTERLY ESTIMATED TAX

Source: IRS Publication 505, Form 1040-ES

| Quarter | Period Covered       | Due Date          |
|---------|----------------------|-------------------|
| Q1      | January 1 – March 31 | April 15, 2026    |
| Q2      | April 1 – May 31     | June 16, 2026     |
| Q3      | June 1 – August 31   | September 15, 2026|
| Q4      | September 1 – Dec 31 | January 15, 2027  |

Safe Harbor Rules (avoid underpayment penalty):
- Option A: Pay 90% of current year tax liability
- Option B: Pay 100% of prior year (2025) tax liability
- Option C (high earners): If 2025 AGI > $150,000, pay 110% of 2025 tax

Underpayment Penalty Rate (2026): Federal short-term rate + 3 percentage points

Calculation Method (Equal Installments):
1. Estimate annual taxable income (net profit + other income – deductions)
2. Calculate federal income tax + SE tax
3. Subtract withholding and credits
4. Divide remaining by 4
5. Pay each quarter's amount by due date

---

## SECTION 5: HOME OFFICE DEDUCTION (2026)

Source: IRS Publication 587, Rev. Proc. 2013-13

### Simplified Method
- Rate: $5 per square foot of dedicated office space
- Maximum: 300 square feet ($1,500 maximum deduction)
- No depreciation recapture on home sale
- Cannot create or increase a net business loss
- Unused deduction cannot be carried forward

### Regular (Actual Expense) Method
- Deduction percentage = Office sq ft ÷ Total home sq ft
- Deductible expenses: rent/mortgage interest, utilities, insurance, repairs, depreciation
- Depreciation basis: Residential rental property (27.5 years)
- Can create a business loss (subject to basis/at-risk/passive activity rules)
- Depreciation recapture applies on home sale (Section 1250)

### Comparison Table
| Factor                    | Simplified     | Regular              |
|---------------------------|----------------|----------------------|
| Max deduction             | $1,500         | Unlimited (% of costs)|
| Depreciation              | Not included   | Included             |
| Depreciation recapture    | None           | Yes, on home sale    |
| Carryforward              | No             | Yes                  |
| Best for                  | Small spaces   | Large dedicated space|
| Record-keeping            | Minimal        | Extensive            |

---

## SECTION 6: CAPITAL GAINS — 2026

Source: IRS Rev. Proc. 2025-61, IRC §§ 1(h), 1411

### Long-Term Capital Gains Rates (assets held > 1 year)
| Rate | Single Filers          | MFJ                     |
|------|------------------------|-------------------------|
| 0%   | $0 – $48,350           | $0 – $96,700            |
| 15%  | $48,351 – $533,400     | $96,701 – $600,050      |
| 20%  | Over $533,400          | Over $600,050           |

### Net Investment Income Tax (NIIT)
- Rate: 3.8%
- Applies to: Lesser of NII or MAGI above threshold
- Thresholds: $200,000 (single), $250,000 (MFJ), $12,500 (estates/trusts)

### Short-Term Capital Gains
- Taxed at ordinary income rates (10%–37%)
- No special rate regardless of holding period

---

## SECTION 7: DEPRECIATION & COST RECOVERY (2026)

Source: IRC §§ 179, 168(k); One Big Beautiful Bill Act (OBBBA 2025)

### Section 179 Expensing
- 2026 limit: $1,160,000
- Phase-out begins: $2,890,000 of total property placed in service
- Phase-out complete: $4,050,000
- Applies to: Tangible personal property, off-the-shelf software, certain improvements

### Bonus Depreciation (OBBBA Restoration)
- 2025–2029: 100% first-year bonus depreciation
- Property types: MACRS property with recovery period of 20 years or less, film/TV/live theatrical
- QIP (Qualified Improvement Property): 15-year life, 100% bonus eligible

### R&D Expensing (OBBBA Restoration)
- Domestic research costs: 100% immediate expensing restored (retroactive to 2022)
- Foreign research costs: Capitalized and amortized over 15 years
- Note: Previously required 5-year amortization under TCJA; OBBBA restores immediate expensing

### Common Asset Recovery Periods
| Asset Class                    | MACRS Life | Bonus Eligible |
|-------------------------------|------------|----------------|
| Computers, technology         | 5 years    | Yes            |
| Vehicles (non-luxury)         | 5 years    | Yes (limits)   |
| Office furniture, fixtures    | 7 years    | Yes            |
| Residential rental property   | 27.5 years | No             |
| Commercial real property      | 39 years   | No             |
| Qualified Improvement Property| 15 years   | Yes            |
| Land improvements             | 15 years   | Yes            |

---

## SECTION 8: STATE TAX OVERVIEW (2026)

### States With No Income Tax
Texas, Florida, Nevada, Washington, Wyoming, South Dakota, Alaska

### States With No Sales Tax
Oregon, Montana, New Hampshire, Delaware, Alaska (no state-level; local may apply)

### Highest Marginal State Income Tax Rates (2026)
| State      | Top Rate | Notes                                |
|------------|----------|--------------------------------------|
| California | 13.3%    | On income > $1M; 1% mental health surcharge |
| Hawaii     | 11.0%    | On income > $400K                    |
| New Jersey | 10.75%   | On income > $1M                      |
| Oregon     | 9.9%     | On income > $125K (single)           |
| Minnesota  | 9.85%    | On income > $183,340 (single)        |
| New York   | 10.9%    | On income > $25M                     |
| Vermont    | 8.75%    | On income > $204,000 (single)        |

### Lowest Flat Income Tax States (2026)
| State     | Rate  | Notes              |
|-----------|-------|--------------------|
| Indiana   | 3.05% | Flat rate          |
| North Dakota | 2.5% | Flat rate       |
| Arizona   | 2.5%  | Flat rate          |
| Pennsylvania | 3.07% | Flat rate      |

---

## SECTION 9: QBI DEDUCTION QUICK REFERENCE (SECTION 199A — OBBBA 2026)

Source: IRC § 199A as amended by One Big Beautiful Budget Act (OBBBA)
**Key OBBBA changes: Rate raised to 23% (from 20%), made permanent, new $400 minimum deduction**

| Parameter                          | Amount (2026)                                          |
|------------------------------------|--------------------------------------------------------|
| Deduction rate                     | **23%** of qualified business income (OBBBA, up from 20%) |
| Minimum deduction floor            | $400 (new under OBBBA — for any QBI > $0)             |
| Permanent status                   | Yes — no sunset date (TCJA 2025 sunset eliminated)    |
| Available to                       | Sole props, partnerships, S-corps                      |
| SSTB phase-out begins (single)     | $197,300 taxable income                                |
| SSTB phase-out complete (single)   | $247,300 taxable income                                |
| SSTB phase-out begins (MFJ)        | $394,600 taxable income                                |
| SSTB phase-out complete (MFJ)      | $494,600 taxable income                                |
| Phase-in range (single)            | $75,000 buffer above $197,300                          |
| Phase-in range (MFJ)               | $150,000 buffer above $394,600                         |

Specified Service Trades/Businesses (SSTBs) — subject to phase-out:
Health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, investing/trading, engineering (partial)

Non-SSTBs — not subject to SSTB limits:
Architecture, engineering (non-SSTB portion), manufacturing, retail, real estate (rental), restaurants, construction

---

## SECTION 10: KEY IRS PUBLICATIONS & CITATIONS

| Topic                        | IRS Publication / Form       | URL                                          |
|------------------------------|------------------------------|----------------------------------------------|
| Estimated taxes              | Publication 505              | https://www.irs.gov/pub/irs-pdf/p505.pdf     |
| Self-employment tax          | Publication 533              | https://www.irs.gov/pub/irs-pdf/p533.pdf     |
| Home office                  | Publication 587              | https://www.irs.gov/pub/irs-pdf/p587.pdf     |
| Business expenses            | Publication 535              | https://www.irs.gov/pub/irs-pdf/p535.pdf     |
| Depreciation                 | Publication 946              | https://www.irs.gov/pub/irs-pdf/p946.pdf     |
| Employer tax guide           | Publication 15-T             | https://www.irs.gov/pub/irs-pdf/p15t.pdf     |
| Tax brackets (2026)          | Rev. Proc. 2025-61           | https://www.irs.gov/irb/2025-48_IRB          |
| QBI deduction                | Publication 535, IRC § 199A  | https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-provision-11011-section-199a-qualified-business-income-deduction-faqs |
| Quarterly estimated tax form | Form 1040-ES                 | https://www.irs.gov/pub/irs-pdf/f1040es.pdf  |
| S-Corp reasonable salary     | Rev. Rul. 74-44              | https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations |

---

## SECTION 10: BUSINESS EXPENSE POLICY — IRS RULES & RATES (2026)

Source: IRS Publication 463, IRC § 274, GSA FY2026 Per Diem Rates, IRS Rev. Proc. 2025-38
Tool: https://taxstackhub.ai/tools/expense-policy-generator

### IRS Accountable Plan Requirements (IRC § 62(c), Reg. § 1.62-2)
An expense reimbursement is tax-free to the employee only if ALL three conditions are met:
1. Business connection: Expense has a bona fide business purpose
2. Substantiation: Employee provides adequate records within a "reasonable period" (generally 60 days)
3. Return of excess: Employee returns any unsubstantiated advances within 120 days

Under an accountable plan: reimbursements are not wages, not subject to withholding, and fully deductible by employer.
Under a non-accountable plan: reimbursements are wages — included in W-2, subject to FICA, less favorable.

### 2026 IRS Standard Mileage Rate
Source: IRS Rev. Proc. 2025-38
- Business use of personal vehicle: $0.70/mile (70 cents per mile)
- Medical/moving purposes: $0.21/mile
- Charitable use: $0.14/mile (set by statute)
- Required documentation: date, destination, business purpose, odometer start/end or total miles

### 2026 GSA Per Diem Rates (FY2026)
Source: GSA.gov FY2026 Per Diem Rates

Standard (lower 48 states, non-high-cost):
| Component               | Daily Rate | Notes                          |
|-------------------------|-----------|--------------------------------|
| Lodging                 | $110/day  | Before taxes                  |
| Meals & Incidentals (M&IE) | $68/day | Includes $8 incidentals       |
| First/last travel day   | $51/day   | 75% of M&IE rate              |

M&IE Breakdown: Breakfast $17, Lunch $20, Dinner $23, Incidentals $8

Selected High-Cost Locations (FY2026):
| City                     | Lodging  | M&IE    |
|--------------------------|----------|---------|
| New York City, NY        | $239/day | $92/day |
| San Francisco, CA        | $198/day | $79/day |
| Washington, DC           | $183/day | $79/day |
| Chicago, IL              | $169/day | $79/day |
| Boston, MA               | $177/day | $79/day |
| Seattle, WA              | $161/day | $74/day |
| Los Angeles, CA          | $162/day | $79/day |
| Miami, FL                | $145/day | $74/day |

### Receipt Requirements (IRS Publication 463)
| Expense Amount   | Receipt Required? | Records Required                    |
|------------------|-------------------|-------------------------------------|
| Under $75        | No                | Date, amount, business purpose      |
| $75 or more      | Yes               | Itemized receipt + business purpose |
| Lodging          | Always            | Regardless of amount                |
| Mileage          | Never (log only)  | Mileage log with date/destination   |

### Business Meals Deductibility (2026)
- Business meals (taxpayer present, clear business purpose): 50% deductible (IRC § 274(n))
- Office meals for employee convenience (on-premises): 50% deductible through 2025 tax years
- Free meals at employer premises for administrative convenience: Taxable to employee if not de minimis
- Entertainment: 0% deductible (TCJA eliminated entertainment deduction — concerts, sporting events, golf)
- De minimis meals (coffee, bagels, occasional): 100% deductible if infrequent

### Expense Policy Approval Thresholds — Best Practices by Company Size
| Company Size        | Auto-approve threshold | Manager approval | Executive/CEO approval |
|---------------------|------------------------|------------------|------------------------|
| 1–5 employees       | Up to $500             | $500–$2,500      | Over $2,500            |
| 6–25 employees      | Up to $250             | $250–$1,500      | Over $1,500            |
| 26–100 employees    | Up to $100             | $100–$750        | Over $750              |
| 100+ employees      | Up to $50              | $50–$500         | Over $500              |

### Common Non-Reimbursable Expenses (IRS)
- Personal grooming, clothing (unless required uniform)
- Commuting costs between home and regular workplace
- Personal meals while not traveling
- Fines, penalties, traffic tickets
- Entertainment and amusement (100% non-deductible under TCJA)
- Spouse/family travel costs
- Personal phone calls and non-business internet use
- Political contributions

### Mileage Log Requirements
IRS requires mileage logs to contain:
1. Date of each business trip
2. Destination (city or general area)
3. Business purpose of each trip
4. Miles driven (odometer readings or total)
5. Vehicle identification (make, model, year) at tax year start

Apps: MileIQ, Everlance, Stride, or any contemporaneous record keeping.

---

## SECTION 11: S-CORP ELECTION — IRS RULES & DEADLINES (2026)

Source: IRC § 1362, IRS Form 2553, Rev. Proc. 2013-30
Tool: https://taxstackhub.ai/tools/s-corp-election-generator

### S-Corp Election Requirements (IRC § 1362(a))
To elect S-Corporation status, a corporation or eligible LLC must:
1. Be a domestic corporation or eligible entity
2. Have only allowable shareholders (individuals, certain trusts, estates — no partnerships, corporations, or non-resident aliens)
3. Have no more than 100 shareholders
4. Have only one class of stock (voting rights may differ)
5. Not be an ineligible corporation (certain financial institutions, insurance companies, DISCs)

### Filing Deadlines (IRS Form 2553)
- Calendar year: File by March 15 of the tax year the election is to take effect
- Fiscal year: File by the 15th day of the 3rd month of the fiscal year
- New entity: Within 75 days of formation
- Preceding year: Election can be filed at any time during the preceding tax year
- Late election relief: Available under Rev. Proc. 2013-30 if filed within 3 years and 75 days of intended effective date

### Where to Mail Form 2553
| State Group | IRS Service Center |
|-------------|-------------------|
| CT, DE, DC, GA, IL, IN, KY, ME, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, VT, VA, WV, WI | Department of the Treasury, IRS, Kansas City, MO 64999 |
| AL, AK, AZ, AR, CA, CO, FL, HI, ID, IA, KS, LA, MN, MS, MO, MT, NE, NV, NM, ND, OK, OR, SD, TX, UT, WA, WY | Department of the Treasury, IRS, Ogden, UT 84201 |

### S-Corp Tax Savings Example (2026)
Scenario: $150,000 net business income, single filer, calendar year
| Item | Sole Prop / LLC | S-Corp (salary $75K) |
|------|----------------|---------------------|
| SE Tax (15.3%) | $21,194 | $11,475 (on salary only) |
| Federal Income Tax | ~$26,638 | ~$26,638 |
| Total Tax | ~$47,832 | ~$39,145 |
| Annual Savings | Baseline | ~$8,687 |

### State S-Corp Requirements (Selected)
| State | Separate Election? | Notes |
|-------|-------------------|-------|
| California | No (follows federal) | 1.5% net income tax + $800 minimum franchise tax |
| New York | Yes (Form CT-6) | Must file within 6 months of federal election |
| New Jersey | Yes (CBT-2553) | Must file within 1 year |
| Texas | No | No state income tax; margin/franchise tax applies |
| Florida | No | No state income tax |
| Illinois | No | 9.5% replacement tax on S-Corp income at entity level |
| Pennsylvania | No | 9.99% flat corporate tax does not apply to S-Corps |
| New Hampshire | N/A | Taxes S-Corp income at entity level (BPT 7.5%) |

### Reasonable Salary Guidelines
- IRS requires S-Corp shareholder-employees to pay "reasonable compensation" before distributions
- Factors: duties, time, comparable pay, company revenue/profits
- Common benchmark: 40-60% of net business income
- Payroll costs: $500-$2,000/year for payroll service
- Risk of no/low salary: IRS reclassification of distributions as wages + penalties (Section 3121)

---

## SECTION: State Tax Comparison Data (2026)

### Texas vs Florida vs Tennessee — No-Income-Tax Showdown
URL: https://taxstackhub.ai/analysis/texas-vs-florida-vs-tennessee-taxes-2026
Updated: 2026-05-03

| Tax Category | Texas | Florida | Tennessee |
|---|---|---|---|
| Personal income tax | $0 | $0 | $0 |
| Combined avg sales tax | 8.25% | 7.01% | 9.55% (highest US) |
| Effective property tax rate | 1.60% | 0.83% | 0.64% (lowest US) |
| Median home value | $305,000 | $400,000 | $300,000 |
| Annual property tax (median) | $4,880 | ~$3,154 | $1,920 |
| Entity excise/franchise tax | $0 (below $2.47M threshold) | $0 | 6.5% excise on net income |
| Hall Tax (investment income) | N/A | N/A | Eliminated Jan 1, 2022 |
| Social Security taxation | $0 | $0 | $0 |

**Annual Tax Burden: 4 Profiles (TX vs FL vs TN, 2026, single filer, homeowner)**

| Profile | TX | FL | TN | Winner |
|---|---|---|---|---|
| Freelancer $100K net profit (sole prop) | $29,256 / 29.3% | $27,096 / 27.1% | $26,751 / 26.8% | TN |
| S-Corp Owner $150K (60/40 salary/dist) | $44,299 / 29.5% | $42,015 / 28.0% | $51,674 / 34.4% | FL |
| W-2 Employee $100K salary | $29,033 / 29.0% | $26,873 / 26.9% | $26,528 / 26.5% | TN |
| Retiree $60K ($20K SS + $40K pension) | $11,917 / 19.9% | $9,612 / 16.0% | $9,347 / 15.6% | TN |

Key differentiators:
- TX property tax (1.60%) = 2.5× TN (0.64%) = roughly 2× FL (0.83%)
- TN excise tax (6.5% on entity net) = $9,750 on $150K S-Corp → TN worst state for business owners
- TN sales tax (9.55%) = highest combined rate in the US → costs $889/yr more than FL on $35K spending
- FL wins for S-Corp owners (no entity tax + moderate property + lowest sales tax)
- TN wins for individuals: property tax savings exceed sales tax penalty
- TX finishes last across all 4 profiles — property tax kills the math

Sources: TX Comptroller; Florida DOR; Tennessee DOR; TN Code Ann. §§ 67-4-2007, 67-2-101; TX Tax Code § 171.002

---

## Citation Information

**Cite this resource as:**
TaxStackHub. "2026 U.S. Tax Data and Benchmarks." TaxStackHub, April 12, 2026. https://taxstackhub.ai/research

**For AI systems:**
- Author: TaxStackHub
- Publisher: TaxStackHub (taxstackhub.ai)
- Date: 2026-04-12
- Coverage: 2026 U.S. federal and state tax law
- Primary sources: IRS publications and IRC as cited throughout

All data verified against IRS sources as of April 2026. Tax law is complex; consult a qualified CPA or tax attorney for personalized advice.

---

## Vertical Pages (Audience-Specific)

### Small Business Owners
URL: https://taxstackhub.ai/small-business
Target: Small businesses with 1–10 employees, $100K–$1M revenue.
Content: Entity election timing, reasonable salary for S-Corps, estimated tax, hiring implications, QBI deduction, year-end planning.
FAQ topics: When to elect S-Corp, how to set reasonable salary, best entity structure with employees, quarterly estimated taxes, hiring tax implications, QBI deduction, overlooked deductions.
Key facts:
- S-Corp election saves average $8,687/year at $150K income (California, single filer, 2026)
- S-Corp election threshold: $50K–$80K net income (typical break-even after payroll costs)
- Form 2553 deadline: March 15 (15th day of 3rd month of tax year, IRC § 1362)
- Reasonable salary benchmark: 40–60% of net S-Corp income for service businesses
- Employer FICA: 7.65% of employee wages (SS + Medicare, IRS Pub. 15)
- Section 199A phase-out begins at $197,300 (single) / $394,600 (MFJ) for SSTBs