Abound's tax calculation API provides estimates for taxes owed specifically on 1099 income, at both the state and federal level. No other taxes are currently supported. The tax engine will take W2 income into consideration for determining the appropriate tax bracket, but does not currently provide the income tax calculations on the W2 income.
You can read more about how the tax calculation breakdown for more details.
Abound's tax calculations take the most conservative approach and assumes that each individual takes the standard deduction, given their filing status (single, married, head of household, filing separately).
Similar to the standard deduction, Abound takes a simplified approach in calculating the QBI deduction by following the steps described in Form 8995. The QBI deduction calculation:
- considers all 1099 income in calculation of adjusted gross income
- incorporates the income phaseout for each filing status to adjust qualified business income
- ignores REIT and PTP component
- assumes all individuals are an SSTB (unless they meet the income threshold)
Yes! Mileage records associated with user will be taken into consideration when calculating the deduction individual's mileage deduction.
Abound currently calculates all 1099 income taxes at the personal level, assuming the income is earned as a sole prop or LLC passthrough. Abound does not currently differentiate between different types of 1099 or S-Corp disbursements.
if you have any additional questions related to tax calculations that aren't answered here, please contact our support team.
Updated 6 months ago