Tax rates, tax set-aside, and income targets

Two Settings tabs keep your tax life in order: Tax Rates is the catalog of rates applied to your invoices and quotes, and Targets & Tax sets how much of each dollar you set aside for taxes plus the income goals you're aiming for. Both live on the Settings page at https://hub.kivimedia.co/?page=settings.

Manage your tax-rate catalog (Settings > Tax Rates)

Every rate you create here becomes available on your invoices and quotes, so pricing stays consistent and the Payments page can report your taxable revenue and tax collected accurately.

Add a tax rate

1. Open Settings > Tax Rates.
2. Click Add Rate.
3. Fill in the form: a Name (for example your state or city tax) and the Rate (%).
4. Optionally check Set as default so this rate is applied automatically, and Active to make it available for use.
5. Click Create. Use Cancel to close the form without saving.

Edit an existing rate

1. Find the rate in the list and click its Edit (pencil) button.
2. Change the name, percentage, default, or active setting inline.
3. Click Update.

Unchecking Active is the gentle way to retire a rate: it stops appearing as an option going forward without disturbing anything already invoiced.

Tax set-aside and income targets (Settings > Targets & Tax)

This tab is about your own financial posture: how much of your income you squirrel away for taxes, and what you're aiming to earn.

1. Open Settings > Targets & Tax.
2. Enter your tax set-aside % - the slice of income you want reserved for taxes.
3. Pick the basis for that percentage: Gross income or Net of deductible expenses.
4. Enter your monthly income target and annual income target.
5. Click Save.

Where these numbers show up

Your settings here feed the Solo dashboard directly: the Tax Set-Aside widget shows how much of your income you should be holding back based on your percentage and basis, and the Income Target widget tracks your progress against the monthly and annual goals you set. Update the settings and the dashboard tiles update with them.

Choosing gross vs net

• Gross income - the set-aside percentage is applied to everything you bring in. Simpler, and errs on the side of saving more.
• Net of deductible expenses - the percentage is applied after deductible expenses come out, which tracks closer to what you'll actually owe if you log your expenses consistently.

If you're not sure which to pick, your accountant's guidance beats any rule of thumb - these settings are a planning aid, not tax advice.

Still stuck? Submit a ticket from this help center and we'll take it from there.