1099 Tax Calculator
Calculate your self-employment taxes, federal income tax, and quarterly estimated payments for 1099 income.
Enter values to see results
Fill in the form and click Calculate
Understanding 1099 Self-Employment Taxes
If you're a freelancer, independent contractor, or gig worker, you likely receive 1099 forms instead of W-2s. This means you're responsible for paying self-employment taxes in addition to federal and state income taxes.
Self-Employment Tax Breakdown
The self-employment tax rate is 15.3%, which consists of:
- 12.4% for Social Security (on income up to $168,600 in 2024)
- 2.9% for Medicare (on all income)
- 0.9% Additional Medicare Tax (on income over $200,000 single / $250,000 married)
Reducing Your Tax Burden
As a self-employed individual, you can reduce your taxable income by deducting legitimate business expenses. Common deductions include:
- Home office expenses (dedicated workspace)
- Business equipment and supplies
- Software and subscription services
- Professional development and education
- Health insurance premiums
- Retirement contributions (SEP IRA, Solo 401k)
- Business travel and mileage
Frequently Asked Questions
What is a 1099 form?
A 1099 form is used to report various types of income other than wages, salaries, and tips. The most common is the 1099-NEC (Nonemployee Compensation) for freelancers and independent contractors who earned $600 or more.
How is self-employment tax calculated?
Self-employment tax is 15.3% of your net self-employment income (12.4% for Social Security and 2.9% for Medicare). This tax is calculated on 92.35% of your net earnings. You can deduct half of your self-employment tax when calculating your adjusted gross income.
When are quarterly estimated tax payments due?
Quarterly estimated tax payments are typically due on April 15, June 15, September 15, and January 15 of the following year. If you expect to owe $1,000 or more in taxes, you should make quarterly payments to avoid penalties.
What expenses can I deduct as a 1099 contractor?
Common deductible expenses include: home office expenses, equipment and supplies, software and subscriptions, professional services, travel and mileage, health insurance premiums (if self-employed), retirement contributions, and business-related education.