How to Enter Business Owner Income in Boldin
If you own a business, your income likely doesn't fit neatly into a standard W-2 box. Depending on how your business is structured, you may receive a salary, business profits, dividends, or a mix. Each is taxed differently, so each needs to be entered differently to keep your plan accurate. This article covers three business types: self-employed, C-corporation, and S-corporation. You can enter your income yourself, or let Boldin AI make the entries for you.
Quick reference
Income type | How it's taxed | FICA / SE tax | Enter in Boldin as |
Self-employed net profit (sole prop, single-member LLC, partnership) | Ordinary income | Yes, both halves (self-employment tax) | Work income + expense for the extra self-employment tax |
C-corp salary | Ordinary income (W-2) | Yes, employee share | Work income |
C-corp dividends | Ordinary or qualified dividend rates | No | Passive income |
S-corp salary | Ordinary income (W-2) | Yes, employee share | Work income |
S-corp profit (K-1) | Ordinary income | No | Passive income |
GOOD TO KNOW Using Boldin AI: Copy the prompt for your business type, replace everything in [brackets], and paste it into Boldin AI. Each prompt asks Boldin AI to show you the entries before saving, so you can check them first. |
Self-Employed (Sole Proprietor, Single-Member LLC, Partnership)
How it's taxed: You pay both the employee and employer sides of Social Security and Medicare, called self-employment tax. It's 15.3% on 92.35% of your net profit up to the Social Security wage base ($184,500 in 2026), and 2.9% above it. Your net profit is also subject to federal and state income tax.
Use net profit, not gross revenue. Enter what's left after business expenses. This is the same number you report on Schedule C.
Why a workaround is needed: Boldin applies the employee share of FICA (7.65%) to all work income. There isn't a self-employed income type yet, so you'll add an expense for the rest of your self-employment tax.
Enter it with Boldin AI
COPY THIS PROMPT INTO BOLDIN AI Please add my self-employment income to my plan using these steps: 1. In Income, add a job called "[Business name]" with work income of $[annual net profit] per year, starting [date] and ending [date], growing at [X%] per year. 2. Calculate my self-employment tax: 15.3% on 92.35% of my net profit up to the Social Security wage base, plus 2.9% on 92.35% of any amount above it. 3. Subtract the FICA Boldin already applies to my work income (6.2% Social Security up to the wage base, plus 1.45% Medicare). 4. In Expenses, add a recurring annual expense called "Self-employment tax (employer side)" equal to the difference from step 3. Use the same start date, end date, and growth rate as my income. Before saving, show me each entry and your calculation. |
Enter it yourself
Go to My Plan > Income and add your net profit as work income.
Multiply your net profit by 6.48%. This is your self-employment tax (14.13%) minus the 7.65% Boldin already applies. For example, $60,000 × 6.48% = $3,888.
Go to My Plan > Expenses and add a recurring annual expense for that amount. Label it "Self-employment tax (employer side)."
Update the expense whenever your income changes.
TIP The 6.48% shortcut works when your net profit is below the Social Security wage base. If you earn more, use the Boldin AI prompt. It calculates the tax above the wage base for you. |
KNOWN LIMITATION The IRS lets you deduct half of your self-employment tax before calculating income tax. Boldin doesn't model this deduction, so your income tax may be slightly overstated. The difference is conservative: your plan may show a little less take-home income than you'll actually have. |
C-Corporation
Salary: If you pay yourself a salary from your C-corp, it's W-2 income. Your corporation pays the employer side of FICA, so it never shows up in your personal income. Boldin handles it like any other W-2 job.
Dividends: C-corps pay dividends from after-tax profits. Dividends aren't subject to FICA. Ordinary dividends are taxed as ordinary income, and qualified dividends are taxed at long-term capital gains rates (0%, 15%, or 20%).
Enter it with Boldin AI
COPY THIS PROMPT INTO BOLDIN AI Please add my C-corp income to my plan using these steps: 1. In Income, add a job called "[Company] salary" with work income of $[annual salary] per year, starting [date] and ending [date], growing at [X%] per year. 2. In Income, add passive income called "[Company] dividends" of $[annual dividends] per year, starting [date] and ending [date], growing at [X%] per year. Before saving, show me each entry. |
Enter it yourself
Go to My Plan > Income and add your salary as work income.
Add your dividends as passive income, not work income. This keeps FICA out of the calculation.
KNOWN LIMITATION Boldin taxes passive income at ordinary income rates. If your dividends are qualified, your tax will be slightly overstated. The difference is conservative. |
S-Corporation
Salary: The IRS requires S-corp owners who work in the business to pay themselves a reasonable salary. It's W-2 income, and it works like any other W-2 job.
Business profit (K-1): Your share of the S-corp's profit is reported on a Schedule K-1. It's taxed as ordinary income on your personal return every year, but it isn't subject to FICA. That's one of the main tax advantages of an S-corp. Taking the profit out as a distribution isn't taxed again.
Enter it with Boldin AI
COPY THIS PROMPT INTO BOLDIN AI Please add my S-corp income to my plan using these steps: 1. In Income, add a job called "[Company] salary" with work income of $[annual salary] per year, starting [date] and ending [date], growing at [X%] per year. 2. In Income, add passive income called "[Company] K-1 profit" of $[my share of profit from my K-1] per year, starting [date] and ending [date], growing at [X%] per year. Make sure it's taxed as ordinary income. Before saving, show me each entry. |
Enter it yourself
Go to My Plan > Income and add your salary as work income.
Add your share of profit from your K-1 as passive income, not work income. This keeps FICA out while still applying income tax.
TIP Enter your share of the profit from your K-1, not just what you take out. You owe income tax on your full share of the profit, even if you leave some in the business. |
Still have questions?
If your situation is more complex, such as multiple businesses, a business sale, or a change in entity type, we're here to help:
Ask Boldin AI.
Use Support Chat by clicking your initials in the upper right corner of your plan.
Consider a coaching session or a Boldin Advisors engagement.