Once you create your Found account, you’ll have two places to store your money: “Balance,” and “Taxes.” Your Balance account is where you can keep “safe-to-spend” money to be used on business purchases. Your Taxes account is where you can set aside money for taxes.
Every time you mark a deposit as “income,” a portion of that income will be automatically transferred to your Taxes account so that you’ll be ready for tax time.
How does Found know how much I owe in taxes?
The “Tax Profile” that you filled out when you signed up for Found helps your app calculate how much you’ll owe in federal, state, and self-employment taxes. Each time you record new business income, Found will use that Tax Profile to estimate how much you’ll owe in taxes, and automatically transfer that amount from your Balance account to your Taxes account.
You can view your current tax bill and your Taxes account balance under the tax tab in the navigation bar in your Found app.
You can add or withdraw money from your Taxes account at any point by clicking the “Transfer” button in your Found app, and then either 1) moving the money into your Balance, and then spending it with your Found card, or 2) transferring the money to a linked bank account. We recommend keeping your Taxes account funded with an equal amount of money to your tax bill—or as close to it as possible—so that you’ll have enough set aside to pay your taxes!
Need to update your Tax Profile? You can do so in your app menu under “Taxes” at any point, and your tax bill will be updated accordingly. You’ll also see your tax bill decrease any time you track a business expense.
Questions about the Taxes account, or self-employment taxes in general? Contact us at firstname.lastname@example.org and we’d be happy to help!