S-Corp Tax Deduction Estimator

See what six common S-Corp deductions could add up to.

Plug in your numbers across mileage, home office, cell/internet, health insurance, retirement, and meals. Compare 2025 and 2026 rates side-by-side. Estimates only — not tax advice. Verify against current IRS guidance for your situation.

2025 rates per IRS Notice 2025-5 & Pub 587 · Verified Jan 2026

1. Vehicle mileage

Standard mileage method. Multiply business miles by the IRS rate. 2025: 70¢/mile · 2026: 72.5¢/mile.

Annual miles driven for the business (commuting doesn't count).
Auto-updates with the year toggle.
Estimated deduction$0

2. Home office (simplified method)

$5 per square foot of business-use space, capped at 300 sq ft = $1,500 maximum. Same rate for 2025 and 2026. Space must be regularly AND exclusively used for the business.

Auto-capped at 300 sq ft (the IRS limit for this method).
$1,500 maximum deduction under simplified method.
Estimated deduction$0

3. Cell phone & internet

Deductible at your business-use percentage. Be honest — the IRS expects a reasonable, documentable allocation.

Combined monthly cost for the lines/services you use for work.
0–100. Common: 50–80% for owner-operators.
Estimated annual deduction$0

4. S-Corp health insurance

As a more-than-2% S-Corp shareholder, premiums the corp pays on your behalf (and reports in your W-2 Box 1) are deductible above the line on your 1040 — full amount, no AGI floor. Structural rule; no rate change between years.

Premiums the S-Corp pays for the owner's health, dental, LTC, etc.
Defaults to 12 — adjust if partial year.
Estimated annual deduction$0

5. Retirement contributions (SEP-IRA / Solo 401(k))

Conservative SEP-IRA / Solo 401(k) employer-side estimate: 25% of W-2 wages from the S-Corp, capped at the annual IRS limit. 2025 cap: $70,000 · 2026 cap: $72,000. Excludes employee-deferral elections and age-50+ catch-up.

Your reasonable-comp salary the S-Corp pays you.
Auto-updates with the year toggle.
Estimated employer contribution$0

6. Business meals

50% of qualifying business meals are deductible (post-2022; the 100% COVID-era allowance expired). Same 50% rate for 2025 and 2026. Meal must have a business purpose and be substantiated.

Total documented business meal expense — receipts, dates, who, why.
Standard rate. Some categories vary; talk to your CPA.
Estimated deduction$0

Your estimated annual picture

Combined deduction across all six categories — and what that could mean in tax savings at three common federal brackets. (Federal-only; doesn't include state or payroll-tax interactions.)

Mileage$0
Home office$0
Cell & internet$0
S-Corp health insurance$0
Retirement contribution$0
Business meals$0
Total estimated deductions$0
Savings @ 22% bracket
$0
Savings @ 24% bracket
$0
Savings @ 32% bracket
$0

Get this as a PDF — with the action steps for each deduction

One-page summary of your numbers, plus a short action checklist for each of the six categories: what to track, what to document, and what to ask your CPA. Free.

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Important — read this

Estimates only. Not tax or legal advice. This calculator uses standard IRS rates as published; your actual deductible amounts depend on facts I don't have here — substantiation, allocation methods, basis limitations, AGI thresholds, state rules, and the rest. Verify against current IRS guidance for your situation, or have a CPA confirm before you act.

I'm a bookkeeper, not a CPA, not an enrolled agent, and not a tax preparer. I don't prepare returns or give tax advice. What I do is keep books that a CPA can actually file from — that's the service that makes deductions like these provable, not just plausible.

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