US Freelancer Tax Calculator

Sole Proprietor vs S-Corporation Comparison for Expats

Digital Nomads
Software Developers
Upwork Freelancers
Remote Entrepreneurs
Annual Business Income
$100,000
Reasonable Salary (S-Corp)
$50,000
Adjust sliders to see how different income levels and salary decisions affect your tax savings
Sole Proprietor (Schedule C)
Business Income: $100,000
FEIE Exclusion: -$100,000
Federal Taxable: $0
Federal Income Tax: $0
Self-Employment Tax: $14,130
Total Annual Tax: $14,130
$14,130
S-Corporation
Salary (FEIE Excluded): $50,000
Profit Distributions: $50,000
Payroll Tax (Both Halves): $7,650
QBI Deduction (20%): -$9,235
Federal Tax on Distributions: $2,681
Total Annual Tax: $10,331
$10,331
$3,799
Annual Tax Savings with S-Corporation
26.9%
Tax Reduction
$18,995
5-Year Total Savings
$317
Extra Per Month
127%
ROI on Compliance
Required IRS Forms Comparison

Sole Proprietor Forms

  • Form 1040
    Individual Tax Return
    Due: April 15
  • Schedule C
    Business Income & Expenses
    Filed with 1040
  • Schedule SE
    Self-Employment Tax
    Filed with 1040
  • Form 2555
    Foreign Earned Income Exclusion
    Filed with 1040
  • Form 114 (FBAR)
    Foreign Bank Accounts (if >$10K)
    Due: April 15

S-Corporation Forms

  • Form 1120S
    S-Corporation Tax Return
    Due: March 15
  • Form 941
    Quarterly Payroll Tax Return
    Due: Quarterly
  • Form 940
    Annual Unemployment Tax
    Due: January 31
  • Schedule K-1
    Shareholder Income Statement
    Issued by S-Corp
  • Form W-2
    Employee Wage Statement
    Issued by S-Corp
  • Form 1040 + 2555
    Individual Return + FEIE
    Due: April 15
Salary Optimization Strategy
Click on salary options below to see how different approaches affect your tax savings and audit risk:
Aggressive ($40K)
$4,295 savings
Higher audit risk, maximum savings
Balanced ($50K)
$3,799 savings
Good balance of savings & defensibility
Conservative ($60K)
$3,302 savings
Lower audit risk, reduced savings
Important: This calculator provides estimates for planning purposes only. Actual tax savings depend on your specific situation including state taxes, foreign tax credits, retirement contributions, filing status, and other factors. Results assume FEIE qualification through Physical Presence Test and standard deduction. Consult qualified tax professionals for personalized advice.