The Monthly Breakdown tab gives you a month-by-month view of the financials Inkle uses to calculate your quarterly estimated tax. It shows income, expenses, financial and tax adjustments, taxable income, and federal tax so you can see how the estimate is built. This matters because it lets you verify the numbers behind your estimate rather than just seeing a final quarterly figure, since the table distinguishes closed actuals, synced figures that can update, and projected estimates.

You'll find it under Estimated Tax → Monthly Breakdown in the left nav.

What each month status means

Every column in the table carries one of three statuses:

Closed
The month's books are finalised. The figures shown are actuals pulled directly from your closed books and will not change. These are the most accurate numbers in the table.

Synced
The month's financials have been fetched and populated in the platform — either pulled from your Inkle Books or added by your account manager from documents you've provided. These figures are live and updated if your books are updated.

Projected
The month's figures have not yet been populated. Inkle carries forward the last available data as a placeholder so the table always shows a full-year view. Projected numbers are estimates only and will be replaced once actuals are available.

What the table shows

The Monthly Breakdown is organized into the following sections:

1. Financials

• Total Income — Your gross revenue for the month.
• Total Expenses — Your total expenses for the month.
• Financial Adjustments — One-time changes to revenue or expenses that apply only to a specific month and are not carried forward into future projections. Hover over the info icon to see what's included.
• Total Net Income — Your income minus expenses, after applying financial adjustments.

2. Tax Adjustments

Tax adjustments are modifications to revenue or expenses required under tax rules, such as meal limitations, bonuses, depreciation, and other tax-specific items. This section also includes Section 174 R&D deductions and addbacks. Adjustments can be applied as either:

• One-time — Applied only to the selected month.
• Recurring — Applied automatically to the selected month and all future months in the tax year.

NOL Adjustments:

A Net Operating Loss (NOL) is a tax asset created when your company's deductible expenses exceed its income in a given year. This is common for early-stage startups. Under current IRS rules, NOLs can be carried forward indefinitely and may offset up to 80% of taxable income in any future year.

This section shows how your NOL is applied to your current year's taxable income:

• Pending NOL — The remaining NOL carryforward from prior years that has not yet been used.
• Used NOL — The portion of your NOL applied to reduce taxable income for the period, subject to the 80% limitation.

Total Taxable Income:

Total Taxable Income represents your net income after applying all financial adjustments, tax adjustments, and any eligible NOL deductions. This is the amount used to calculate your federal income tax.

How figures get populated

Your account manager handles this on your behalf. There are two ways actuals get added to the table:

• From Inkle Books: If your books are on Inkle, your account manager can fetch your financials directly from the platform. These sync into the Monthly Breakdown automatically.
• From documents you provide: If your books are managed externally, share your income statement or P&L with the account manager. They'll add the figures to the platform and the table will update accordingly.

You don't need to enter anything in the Monthly Breakdown yourself. If you notice a figure that looks off, or if your books have been updated and the table hasn't reflected it yet, reach out to your account manager or the Inkle support team.

FAQ

What does "Projected" mean if my books are already up to date?

‍It means Inkle hasn't yet received or synced actuals for that month. Once your account manager updates it, the status changes to Closed or Synced.

Can I edit the numbers in the Monthly Breakdown myself?

‍No. All figures are entered by your account manager from your books or the documents you provide.

Why does my tax amount change between months?

‍Each month reflects the latest available data. As actuals replace projections, the calculated tax amount updates accordingly.

What happens to NOL if I don't use it all this year?

‍Any unused NOL carries forward indefinitely and can offset up to 80% of taxable income in future years.