How does tax auto-saving work?

Found is able to automatically set aside funds from deposits marked as income into your Taxes pocket, helping you ensure that you’re saving enough to pay your quarterly tax bills.

Auto-saving is enabled by default for sole proprietors. You can adjust your tax-savings strategy by tapping the Taxes pocket and selecting Auto-save for taxes from the settings menu.

From here, you can enable or disable auto-saving, or change how Found saves for you. There are two options for automatic tax saving: using Found’s estimate or saving a fixed percentage.

Using Found’s estimate

If you’re a sole proprietor using Found’s estimate, Found will calculate your new tax bill and set aside funds so you are covered for upcoming tax payments. The percentage set aside is based on your tax bracket, which is determined by your Tax Profile, the income you’ve reported in Found, and how much you’ve already set aside.

If you live in a state that levies an income tax, Found will also save a fixed percentage to account for that state income.

Saving a fixed percentage

All Found users, including users who have indicated that they are not sole proprietors, are able to opt to save a fixed percentage from each income deposit. This may be useful if you don’t file a Schedule C or wish to save more to account for additional tax sources.

If you’re automatically allocating funds to other pockets, keep in mind that Found will always save for taxes first, before making any other allocations.