60% lump vs actual expense comparison
Enter income, income type, and actual expenses to compare which expense method results in lower tax. An estimate for planning — not tax advice.
Results are estimates for tax year 2569 — verify with an accountant before filingLump expense
Lower tax- Net taxable income
- 420,000
- Tax due
- 19,500
Actual expense
- Net taxable income
- 440,000
- Tax due
- 21,500
Lower tax does not always mean correct — choose the method that matches reality and is backed by evidence, especially if you claim actual expenses you must keep complete documents.
How the 60% lump differs from actual expenses
A lump deduction takes a fixed percentage of income with no documents needed — for example 40(8) can take 60% — while actual expenses are deducted against documented costs. If real cost is below the lump rate, the lump is usually better; if higher, use actual expenses.
What this tool computes
It compares the two tax outcomes side by side using the tax year 2569 progressive rates and highlights the lower-tax side. Remember the choice must match your actual work and be documented — not just the lowest tax.
Want a more detailed tax estimate
For a full-year estimate including other deductions, try the personal income tax calculator for 2569, and read the online-seller tax guide to plan the whole year.
Frequently asked questions
How does the 60% lump differ from actual expenses?
A lump deduction takes a fixed percentage of income with no documents — for example 40(8) can take 60% — while actual expenses are deducted against documented costs. If real cost is below the lump rate, the lump is usually better; if higher, use actual.
Can I just pick the method with the lowest tax?
You should not pick only the lowest tax. The method must match your actual work and be documented, especially for actual expenses where you must keep complete records in case of review.
Can I use this result to file taxes?
No. This is a planning estimate only. Verify with an accountant or tax advisor before filing, and see the personal income tax calculator for 2569 for more detail.
What is the 60% lump-sum expense deduction?
The 60% lump-sum deduction applies to certain trade/business income under Section 40(8), letting you deduct expenses without proof documents. Actual-expense deduction requires full documentation but can sometimes deduct more. Compare both methods above.
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