HomeCasa Prompts

How much to set aside for taxes as a freelancer

Estimate what share of each invoice to set aside for income tax and self-employment taxes, with a spreadsheet calculator, a monthly routine and questions for your accountant. Designed for ChatGPT, Claude, Gemini and Microsoft Copilot. It includes 5 customizable variables and you can copy it for free in one click.

Intermediate · Text · Pending editorial review

Designed for:

Prompt

Act as a financial educator for self-employed people. Your goal is to help me avoid nasty tax surprises, not to replace a tax professional.

My situation:
- Country or state where I pay tax: {{country}}
- Average monthly revenue (before sales tax, if any): {{revenue}}
- Estimated deductible business expenses per month: {{expenses}}
- How I work: {{work_setup}}
- Other income (for example, a salary): {{other_income}}

If important information is missing for the estimate, ask me before continuing.

Deliverables:
1. A map of the typical obligations in {{country}} for my setup: income tax, self-employment or social contributions, sales tax or VAT where it applies, and estimated or quarterly payments. For each one, say whether you are confident or whether I must confirm it.
2. A suggested set-aside percentage for every payment I receive, as a cautious range, showing the calculation step by step. If you are not sure of a rate, write [FILL IN: rate from the tax authority] instead of guessing.
3. A spreadsheet calculator: columns (date, client, net amount, sales tax, amount received, set-aside) and formulas ready to paste.
4. A "buckets" system: a separate tax savings account, keeping any sales tax collected apart, and a 15-minute monthly routine.
5. A calendar of the usual deadlines I need to confirm, marked [FILL IN: official date].
6. Ten specific questions to bring to my accountant or tax preparer.

Constraints:
- Do not present any rate, bracket or deadline as final: rules change and depend on the jurisdiction.
- Always say I should verify the figures on the official tax authority website (for example, the IRS and my state) or with a qualified tax professional.
- Prefer setting aside too much rather than too little, and explain why.

Format: an obligations table, a step-by-step calculation and a formula block.

How to use it

Use your average revenue from recent months. Confirm every rate and deadline on your tax authority's website and fine-tune the percentage with your accountant after your first filing.

Usage example

Country: United States (Texas) · Revenue: $6,500/month · Expenses: $600/month · Setup: sole proprietor · Other income: none.

Sample output

Typical obligations (sole proprietor, Texas)

ObligationWhat it isConfidence
Federal income taxOn net profit, paid through estimated quarterly paymentsConfirm your bracket: [FILL IN: rate from the IRS]
Self-employment taxSocial Security and Medicare on net earningsConfirm current rate and base on IRS.gov
State income taxTexas generally has no personal income taxConfirm with the state comptroller
Sales taxOnly if your services are taxable in Texas[FILL IN: check with the comptroller]

Step-by-step (sample numbers)

  1. Monthly net profit: $6,500 − $600 = $5,900.
  2. Cautious working assumption: 30% of net (a planning placeholder, not an official rate).
  3. Monthly set-aside: $5,900 × 30% = $1,770 → about 27% of every payment received.

Over-saving is safer: any surplus goes back to your buffer after you file; a shortfall arrives as one large bill, possibly with penalties.

Spreadsheet formulas

F2 (set-aside) = ROUND((C2 - G2) * $J$1, 0)
J1 = 0.30   ← set-aside %, adjust with your tax preparer

Verify every rate and deadline on IRS.gov and the Texas comptroller site, or with a qualified tax professional. …

Key facts

Category
Finance · Calculators
Output type
Text
Level
Intermediate
Designed for
ChatGPT, Claude, Gemini and Microsoft Copilot
Verified in
Pending editorial verification
Variables
Country or state, Average monthly revenue, Deductible expenses per month, Work setup and Other income
Language
English
Price
Free, no sign-up
Updated
Nov 7, 2026

Frequently asked questions

Does this prompt calculate my exact tax bill?

No. It gives a cautious estimate so you can set money aside every month. Your real bill depends on current rules and your personal situation, which a tax professional should review.

Why keep sales tax separate?

Sales tax or VAT you collect is not your income: you hold it for the tax authority. Keeping it in its own bucket stops you from spending it by mistake.

What is this prompt for?

Estimate what share of each invoice to set aside for income tax and self-employment taxes, with a spreadsheet calculator, a monthly routine and questions for your accountant.

Which AI tools does it work with?

It is designed for ChatGPT, Claude, Gemini and Microsoft Copilot. We have not verified it in these tools yet, so results may vary between them.

How do I customize the prompt?

Click “Customize” and fill in the variables (Country or state, Average monthly revenue, Deductible expenses per month, Work setup and Other income). The text updates instantly and you can then copy it in one click. Values are stored only in your browser.

Do I need experience to use it?

It is intermediate: it helps to know the topic so you can provide good context and review the result critically.

Is this prompt free?

Yes. Every HomeCasa Prompts prompt is free, with no sign-up or subscription. You can also use them in professional projects.

Can I trust the AI output?

Treat it as a high-quality draft: always check data, figures and important claims before publishing or making decisions.

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