2026 Form 1120-S · Reasonable Salary & 20% QBI

2026 S-Corp Reasonable Salary & 20% QBI Calculator

Compare an LLC against an S-Corporation for 2026, optimize your W-2 salary, and download your Board Minutes PDF.

15.3% FICA Tax ShieldS-Corp K-1 distributions skip Social Security & Medicare tax.
20% QBI DeductionPermanent Section 199A pass-through write-off on net K-1 profit.
Audit-Ready Minutes PDFPrints your signed IRS Reasonable Compensation Board Resolution.
Part I · Business Entity, Net Profit & Officer Reasonable Salary
Printed on Corporate Minutes Resolution PDF Enter a company or taxpayer name.
Sets BLS/IRS occupational salary benchmark
Sets 2026 QBI phase-out & federal tax brackets
Gross revenue minus operating expenses ($20k to $5M) Enter net profit between $20,000 and $5,000,000.
Form 1120-S Line 7 Officer Compensation Enter a W-2 salary between $10,000 and $2,000,000.
Tax-free Home Office + Business Mileage deduction Enter $0 to $100,000 in accountable plan reimbursements.
Part II · Solo 401(k) / SEP, 2% Shareholder Health Insurance & State PTET
Added to W-2 Box 1 (FICA-exempt!) & Form 1040 Sch 1
Up to 25% of W-2 salary ($72,000 total 2026 415(c) cap)
Enacted Public Law 119-21 permanent 20% rate ($400 min floor)
Build IRC § 62(c) Accountable Plan PDF

2026 S-Corporation vs. Single-Member LLC (Schedule C) vs. C-Corporation Matrix

2026 Federal Payroll Tax, Section 199A QBI Deduction, and Home Office Rules by Entity Structure
2026 Tax Rule Sole Prop / 1099 LLC (Schedule C) S-Corporation (Form 1120-S) C-Corporation (Form 1120)
15.3% FICA / Self-Employment Tax Paid on 92.35% of entire net profit Paid only on W-2 Reasonable Salary; K-1 distributions are FICA-free Paid on W-2 salary; dividends subject to double taxation
2026 Section 199A QBI Deduction Up to 20% of net Schedule C profit Up to 20% of Form 1120-S K-1 profit (W-2 wages unlock SSTB & high-income caps) Not eligible for Section 199A QBI deduction (21% flat corporate rate)
Home Office & Mileage Deduction Claimed on Schedule C & Form 8829 Must use an IRC § 62(c) Accountable Plan reimbursement voucher Must use an IRC § 62(c) Accountable Plan
2026 Auto Loan Interest (Form 1098-VLI) vs. Section 179 Business % on Schedule C or personal 1098-VLI 100% Bonus Depreciation / Sec. 179 on Heavy SUVs (>6,000 lbs) or Accountable Plan mileage Corporate Section 179 / Bonus Depreciation

3 Core 2026 S-Corp & Owner Tax Optimization Engines

1. 2026 S-Corp Reasonable Salary & 20% QBI Calculator

Model W-2 Officer Compensation vs. K-1 Distributions, verify IRS audit risk ratios, and print your Form 1120-S Reasonable Compensation Board Resolution PDF.

2. IRC § 62(c) Corporate Accountable Plan & Home Office Generator

S-Corp owners cannot file Form 8829. Generate your corporate Accountable Plan Policy and monthly Home Office + 70¢/mile Reimbursement Voucher PDF.

3. 2026 Section 179 & 100% Bonus Depreciation vs. Schedule 1-A Auto Optimizer

Compare writing off a >6,000 lb GVWR SUV/Truck inside your S-Corp vs. claiming the $10,000 Form 1098-VLI deduction on Schedule 1-A + 70¢/mi reimbursements.