Worked example
A single agent with $150,000 of commissions paid
A single agent taxed on Schedule C is paid $150,000 of commissions after the broker split, with no W-2 wages or other income. The agent drives 6,000 business miles in each half of 2026 and expects $10,000 of marketing, $5,000 of MLS, dues and licensing, a $1,500 home-office deduction, $2,000 of business meals paid and $4,000 of other expenses. These are the calculator defaults.
Inputs
| Filing status and treatment | Single, Schedule C |
|---|---|
| Commission income paid to the agent | $150,000 |
| Business miles, Jan. 1 to June 30 and July 1 to Dec. 31 | 6,000 and 6,000 |
| Marketing, plus MLS, dues and licensing | $10,000 and $5,000 |
| Home office, meals paid, other expenses | $1,500, $2,000, $4,000 |
| Deduction used | 2026 standard deduction |
| Next net commission check | $10,000 |
Calculator output
| Mileage deduction | $8,910 |
|---|---|
| Schedule C net profit | $119,590 |
| Self-employment tax | $16,898 |
| Modeled QBI deduction | $19,008 |
| Incremental federal income tax | $11,439 |
| Estimated federal tax from commissions | $28,337 |
| Suggested reserve rate | 18.9% |
| Reserve from the next check | $1,889 |
Mileage is 6,000 x 72.5 cents plus 6,000 x 76 cents. Only half of the $2,000 of meals is deducted. The QBI deduction is 20% of taxable income before QBI rather than 20% of QBI, because the standard deduction leaves taxable income below QBI. The reserve rate is the estimated federal tax divided by the $150,000 of commissions.