Ask an AI Accountant

A free tool by

Question
How can I understand if I can save money for an emergency saving account if my income from self-employment is 20,000?
AI accountant’s answer:
To determine if you can save money for an emergency savings account with a self-employment income of $20,000, you'll need to consider your tax obligations, expenses, and personal financial situation. Here are some steps you can follow: 1. Calculate your self-employment tax: As a self-employed individual, you're responsible for paying Social Security and Medicare taxes, known as self-employment tax. For 2022, the self-employment tax rate is 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings. You can deduct half of your self-employment tax when calculating your adjusted gross income. 2. Estimate your income tax: Based on your taxable income, determine your estimated income tax liability. Don't forget to consider any deductions (e.g., business expenses, qualified business income deduction) and tax credits you might be eligible for. 3. Review your expenses: Assess your living and business expenses to understand how much money you need to cover your ongoing costs. This includes rent or mortgage, utilities, food, insurance, transportation, and any other necessary expenses. 4. Calculate your discretionary income: Subtract your estimated tax liability and expenses from your self-employment income of $20,000. What's remaining is your discretionary income. 5. Set a savings goal: Based on your discretionary income, decide how much money you want to save each month for your emergency savings account. A common guideline is to aim for three to six months' worth of living expenses in an emergency fund. Once you determine how much money you can save monthly, you can start building your emergency savings account. Keep in mind that your self-employment income may not be consistent, so you may need to adjust your savings plan accordingly throughout the year.
Comment from reviewer
Jacques Seys, CPA
Not Correct.
Icon check
Looks good

Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

Find write-offs.
File taxes.

Keeper helps independent contractors and freelancers discover tax deductions and file taxes.

Get started

Ask an AI Accountant

A free tool by

Question
This is some text inside of a div block.
AI accountant’s answer:

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Comment from reviewer
This is some text inside of a div block.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Not Correct.
Icon check
Looks good

Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

Find write-offs.
File taxes.

Keeper helps independent contractors and freelancers discover tax deductions and file taxes.

Get started