1099 Freelance Tax & Contract Evaluator
Estimate self-employment taxes, quarterly set-aside payments, and compare 1099 vs W-2 equivalent compensation.
1099 Income & Expenses
Deduct 20% of net business income before federal income tax
Per-Invoice Reserve Rate
26.6%
Set aside this % of every invoice
Total Annual Tax
$31,925
SE + Federal + State
Quarterly Payment
$7,981
Each quarter estimated payment
After-Tax Income
$73,075
Net profit minus all taxes
Quarterly Payment Schedule
Tax Breakdown
Self-Employment Tax
15.3% of net SE profit (Medicare + Social Security)
Federal Income Tax
After standard deduction & QBI
State Income Tax
Based on selected state tier (8%)
SE Tax Deduction Explainer
The 50% SE tax deduction lowers your AGI before federal income tax is calculated, reducing your overall tax burden.
Half SE Tax (deducted from AGI)
$7,418
Adjusted Gross Income
$97,582
Federal Taxable Income
$61,982
How the 1099 Tax Calculator Works
The 1099 tax calculator estimates your self-employment tax, federal income tax, and state income tax based on your 1099 income and expenses. It calculates your quarterly estimated payments and recommends a per-invoice reserve rate so you never get caught short at tax time.
1099 Tax Formulas
1099 vs W-2 Equivalent
The W-2 comparison mode calculates the total W-2 compensation package (salary + benefits + PTO), computes the net take-home pay after all taxes, then determines the minimum 1099 gross revenue required to match that take-home amount.
1099 Tax Tips
Pay Quarterly
The IRS requires quarterly estimated tax payments if you expect to owe $1,000+ at year end. Missing deadlines triggers underpayment penalties.
Track Every Expense
Business expenses directly reduce your net SE profit, lowering both SE tax and income tax. Keep receipts and use accounting software.
Save the QBI Deduction
The 20% Qualified Business Income deduction can save thousands. Most freelancers qualify — keep it enabled unless your income exceeds phase-out limits.