Estimate your federal income tax, self-employment tax, and quarterly estimated payments
Enter your annual self-employment (1099) income and your filing status. The calculator estimates the 15.3% self-employment tax (Social Security + Medicare), federal income tax on the remainder, and your total estimated tax — so you know what to set aside from every invoice.
Standard deduction varies by filing status.
Pay $0 each quarter (4 payments/year) to avoid IRS underpayment penalties.
Self-employment tax (SE tax) is the Social Security and Medicare tax paid by freelancers, independent contractors, and small business owners. It's equivalent to the FICA taxes withheld from W-2 employees' paychecks, but as a 1099 worker, you pay both the employer and employee portions — for a total of 15.3%.
If you expect to owe $1,000 or more in taxes when you file your return, the IRS requires you to make quarterly estimated tax payments. Missing these deadlines results in underpayment penalties and interest.
Quarterly deadlines are typically: April 15, June 15, September 15, and January 15 of the following year.
Self-employment tax = net income × 15.3% (12.4% Social Security + 2.9% Medicare), applied after the standard deduction. Federal income tax is then calculated on the remaining taxable income using standard brackets. Setting aside roughly 25-30% of net income covers both.
On $65,000 of net 1099 income, the self-employment tax is about $9,184 and federal income tax about $5,265 — a total of $14,449, or an effective rate of 18.1%. Setting aside that share from each payment avoids a surprise tax bill in April.
A general rule of thumb is 25-30% of your net self-employment income. If you earn $100,000 profit, set aside $25,000-$30,000 for taxes. Use the calculator above for a more precise estimate.
Yes! If you use part of your home exclusively for business, you can deduct a portion of your rent/mortgage, utilities, and internet. The simplified method is $5 per square foot, up to 300 square feet ($1,500 max).