1099 Tax Calculator with Deductions
Your 1099 income
Estimated taxes
Federal estimate only (2026 single/MFJ standard deduction & brackets, QBI 20% applied). State tax not included. For planning: confirm with a tax professional.
Related: DoorDash tax calculator · all freelancer tools
How to use the 1099 tax calculator
- Enter gross 1099 income: everything on your 1099-NEC forms plus unreported self-employment income (you owe tax on it either way).
- Enter deductions: mileage (2026: 70¢/mile), supplies, phone and internet share, software, home office, health insurance premiums. Every dollar here saves 25–40¢ in tax.
- Pick your filing status and add any W-2 income: day-job wages push your 1099 profit into higher brackets.
- Read the quarterly number: that's what to send the IRS every quarter (due roughly Apr 15, Jun 15, Sep 15, Jan 15).
- Use the set-aside %: move that share of every client payment into a separate account the day it arrives.
The two taxes every 1099 worker pays
Self-employment income gets taxed twice over: self-employment tax (15.3%: both halves of Social Security and Medicare, since you're employer and employee) and regular federal income tax on top. That's why a freelancer earning $60,000 owes far more than a W-2 employee with the same salary. This calculator runs both, applies the deductions the tax code actually gives you, and turns the total into a quarterly payment.
The deductions that do the heavy lifting
The calculation applies three automatically: the employer-half SE tax deduction (half your SE tax comes off taxable income), the QBI deduction (20% of qualified business income, through 2026), and the standard deduction. Your job is the expenses field: business mileage at 70¢/mile is the big one for drivers and field trades, plus home office, phone/internet share, software, insurance, and supplies. $8,000 of expenses saves roughly $2,400–$3,200 in combined tax at typical rates.
Quarterly payments: the trap and the safe harbor
The IRS wants tax as you earn, not at filing. Skip quarterlies and penalties accrue even if you pay in full by April. Safe harbor: pay at least 100% of last year's total tax (110% if AGI over $150k) in four installments and you're penalty-proof regardless of what this year brings. First year freelancing? Use this calculator's quarterly figure.
Related tools
Gig drivers: the DoorDash tax calculator is this engine with mileage built in. Track the hours behind the income with the time card calculator, convert your day rate to an hourly rate, and bill clients with the free invoice generator.
How the tax estimate is calculated
Net profit = max(0, 1099 income − business expenses)SE tax base = net profit × 0.9235Self-employment tax = SE tax base × 0.153Taxable income = net profit − (SE tax ÷ 2) − QBI + W-2 income − standard deductionFederal income tax = tax on total taxable − tax on W-2 portion aloneTotal owed = self-employment tax + federal income taxWhat this calculator does not cover
This tool calculates federal self-employment tax (15.3% on net earnings up to $168,600 for 2024, then 2.9% above that) and estimated federal income tax. It does not compute state income tax, which ranges from 0% (Texas, Florida, Nevada) to 13.3% (California top bracket). It also excludes the 0.9% Additional Medicare Tax that applies when self-employment income exceeds $200,000 (single filers) or $250,000 (married filing jointly), per IRS Publication 505. Qualified Business Income (QBI) deduction under IRC §199A - worth up to 20% of net business income for eligible filers - is not factored in. Run those calculations separately or consult a CPA for the full picture.
The retirement account offset most 1099 workers ignore
A Solo 401(k) lets a self-employed filer contribute as both employee and employer. The employee deferral limit for 2024 is $23,000 (plus $7,500 catch-up if age 50+). The employer contribution can be up to 25% of net self-employment earnings. Combined, total contributions can reach $69,000. Every dollar contributed reduces taxable net income dollar-for-dollar, cutting both income tax and the deductible half of SE tax. A SEP-IRA caps at 25% of net earnings or $69,000, whichever is less - simpler to administer but no Roth option.
Correcting the estimated payment calculation after a high-income year
IRS safe harbor under IRC §6654 requires payments covering either 100% of prior-year tax liability or 90% of the current-year liability - whichever is smaller. If prior-year AGI exceeded $150,000, the prior-year threshold rises to 110%. Missing a quarterly deadline by even one day triggers a penalty calculated at the federal short-term rate plus 3 percentage points, applied to the underpayment amount per day. For gig workers billing variable amounts, the DoorDash tax calculator handles platform-specific income patterns that distort flat quarterly splits.
Frequently Asked Questions
How much should I set aside for taxes on 1099 income?
Typically 20–30% of gross for federal (SE + income tax). The calculator shows your exact percentage. Add your state's rate on top (0–10% depending on state).
What is self-employment tax?
15.3% on 92.35% of net profit: 12.4% Social Security + 2.9% Medicare. It applies from the first dollar of profit over $400, even if you owe no income tax.
What can I deduct as a 1099 contractor?
Business mileage (70¢/mile in 2026), home office, phone and internet share, equipment, software, supplies, professional services, health insurance premiums, and half your SE tax (applied automatically here).
When are quarterly taxes due?
April 15, June 15, September 15, and January 15 (following year). Miss them and the IRS charges an underpayment penalty computed like interest.
Does this include state taxes?
No: it's a federal estimate. Add your state income tax rate to the set-aside percentage; seven states charge none.