Independent Consultant at $100K

Income: $100,000

Tax Savings: $12,500

Mark, a management consultant who left a corporate job to go independent

Mark earns $100,000/year consulting for 3-4 clients. He travels frequently for client meetings, works from a home office, and is considering S-Corp election.

Deduction Breakdown

Home Office

Actual expense method: 15% of $24,000 annual home costs

$3,600

Travel

Flights, hotels, car rentals for client travel

$4,500

Mileage

5,000 business miles × $0.725

$3,625

Professional Development

Conferences, courses, certifications

$2,000

Health Insurance

Family health insurance premium

$7,200

Solo 401(k)

Employee + employer contributions

$20,000

Total Deductions

$40,925

Key Takeaways

•At $100K, actual expense home office often beats simplified
•Travel expenses add up—track every trip
•Solo 401(k) allows massive retirement contributions
•Consider S-Corp at this income level for SE tax savings

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