A worked example

The leap to self-employment

Sam, 38, earning $150k, thinking about going full-time on a consulting practice they expect to net $60k in year one, growing 20% a year.

“If I quit next year and the business nets $60k growing 20%, how long do my savings carry the household, and what do my taxes look like?”

What the projection shows

Whether a shortfall shows up under these assumptions and when, the self-employment tax and QBI deduction each year, how much to set aside for quarterly estimated taxes based on the projected income, and how low the bracket sits in the lean years.