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Tax Estimates is a suite of endpoints that project a business’s federal and state tax liability for a given year, based on their categorized income, deductible expenses, and tax profile.
To enable the Tax Estimates feature for your customers, request access from your Layer representative.

Core components

Tax calculation overview

Business revenue and deductible expenses are derived from the business’s categorized ledger data via the Schedule C report. Only categorized transactions are included; uncategorized transactions are excluded from the calculation but surfaced on the tax checklist. For the full breakdown of how each number is computed, see Get tax details.