For consultants + freelancers · $100K to $500K

You're crushing revenue. The IRS is crushing you back.

Solo consultants, fractional execs, agency owners, and high-end freelancers leave $20K to $50K on the table every year because nobody set up a real retirement plan, modeled QBI, or fought for the home office deduction the right way.

What consultants get wrong (and what we fix)

You make great money. You probably max a SEP at 25% and call it a day. There are five better moves on the table and we use them all.

Solo 401(k) up to $69,000 (2024)

$23,000 employee deferral plus 25% employer profit-share, capped at $69K total ($76,500 if 50+). Lets you shelter way more than a SEP IRA at the same income level. We add a Roth bucket and after-tax for the mega-backdoor where it fits.

IRC §401(k), §415(c); Rev. Proc. 2023-34

SEP IRA fallback

Simpler than a Solo 401k. 25% of net SE comp up to $69K for 2024. Great if you're a procrastinator, you can fund it up to your filing deadline including extensions. Bad if you ever want a backdoor Roth (pro-rata rule bites). We pick the right vehicle for your situation.

IRC §408(k); §415(c); Form 5305-SEP

QBI §199A 20% deduction

Consulting is a Specified Service Trade or Business. The 20% deduction phases out between $241,950 to $291,950 single and $483,900 to $583,900 joint for 2024. We use retirement contributions, HSA, charitable giving, and entity structure to land inside the phase-in zone so you keep some or all of it.

IRC §199A(d)(2); Treas. Reg. §1.199A-5

Home office deduction

Regular and exclusive use, principal place of business. Actual method (% of utilities, mortgage interest, depreciation) almost always beats the $5/sqft simplified method for a real home office. We measure, document, and prep the Form 8829 for audit.

IRC §280A(c)(1); Form 8829; Soliman v. Commissioner

Travel days documentation

Business travel meals are 50% deductible. Mixed-purpose trips need primary-purpose proof. We build a mileage and travel log per client and per project so when the IRS asks, you have a timeline, not a vibe.

IRC §162, §274(n); Rev. Proc. 2019-48; Treas. Reg. §1.274-5

S-Corp election when revenue justifies it

Past roughly $80K of net SE income, S-Corp election usually pays for itself by trimming SE tax on the distribution portion. We benchmark reasonable comp, run payroll, and file the §1120-S so it's defensible.

IRC §1361; §1402(a); Rev. Rul. 59-221

Real client example

Fractional CFO consultant, $285K net 2024, S-Corp. We maxed Solo 401k profit-share to $61K, captured partial QBI inside the phase-out, and documented a real home office.

$38,400 saved

Federal tax reduction in 2024 vs. their prior preparer who only ran a SEP at 18%.

Book a tax planning call → Talk to our office
Call 689-331-5723 · info@zerofusstaxes.com · Real humans pick up.
Disclaimer. This page is general tax information, not advice for your specific situation. Code section references are accurate as of the 2024 tax year and may change. Solo 401(k), SEP IRA, QBI eligibility, S-Corp election, and home office deductions all require facts-and-circumstances analysis. Savings examples are illustrative and based on actual client outcomes but your results will depend on entity structure, income level, state of residence, and documentation quality. Zero Fuss Taxes is the operating brand. We are not your tax advisor until we sign an engagement letter.