What is a Tax Savings Account and how does it work?

A part of Level Pro with no minimums or monthly fees, the Tax Savings Account is designed to help you plan and save for self-employment taxes year-round.

The Tax Savings Account is an FDIC-insured* checking account. It enables you to manage all the finances related to your business and includes both sole proprietors and registered businesses (such as Limited Liability Companies, or LLCs).

To learn more about how to use the Tax Savings Account, please check out this video:

Tax Savings Account features

• No minimums or monthly fees
• Both a physical and virtual Debit Card (the physical debit card may be ordered from your Level Account)
• Get Paid Early: set up payouts from your Work Apps within our Business Details area to direct your funds into your Level Earnings Account
• ACH Transfers
  

NOTE: Users with more than one payout method for an app (such as bank deposit and instant pay) will need to direct all of the methods to their Earnings account.

Managing your tax responsibilities

Learn more about self-employment taxes over at Level's blog, https://www.levelgoals.com/blog. Please review our article, Self-Employment Taxes: What You Need to Know to gain a deeper understanding of your role.

NOTE: This resource is for informational purposes only and should not be construed as financial or tax advice (or a substitute for obtaining such advice), or for the purpose of avoiding U.S. Federal, State, or Local tax payments and penalties.

Using the Tax Savings Account to save for taxes:

1. Make a manual contribution to the account at any time by transferring funds from your Level Earnings Account to your Tax Savings Account.
2. Set up automated tax savings, which allows you to set aside a portion of linked earnings to automatically be sent to your Tax Savings Account.

Transferring and withdrawing from your Tax Savings Account

You have full control over your Tax Savings Account, so you may transfer funds between your Tax Savings Account and Level Earnings Account as well as withdraw funds at any point.

Instantly transfer the funds to your Level Earnings Account without penalty if you need to access your funds in your Tax Savings Account.

From your Level Earnings Account, access your funds via your Level Debit Card or transfer them to an external bank account.

To use the Tax Savings Account to save for taxes:

1. Make a manual contribution to the account at any time by transferring funds from your Level Earnings Account to your Tax Savings Account.
2. Set up automated tax savings, which allows you to set aside a portion of linked earnings to automatically be sent to your Tax Savings Account.

For more information on tax savings, please review our How do automated tax savings work? article.

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Want more? Email us at [e-mail] or call toll-free at [phone]. You may also self-serve within our Help Center to learn more about our resources within Level Pro, our Level Earnings Account, which is FDIC insured through Piermont Bank; Member FDIC, and how our Level Advance payment and repayment works.