1. What is 1099 Income Tax?

1099 income tax refers to the taxes owed on income reported on Form 1099, which is typically earned by independent contractors, freelancers, and self-employed individuals. Unlike W-2 employees, 1099 workers are responsible for paying both income tax and self-employment tax.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• 1099 income — Total income reported on Form 1099
• tax rate — Estimated income tax rate (federal + state)
• SE tax — Self-employment tax (Social Security + Medicare)

Explanation: The calculator first calculates income tax by multiplying income by your estimated tax rate, then adds the self-employment tax to get your total tax liability.

3. Understanding 1099 Taxes

Details: As a 1099 worker, you're responsible for:

• Income tax (federal and possibly state)
• Self-employment tax (15.3% for Social Security and Medicare)
• Estimated quarterly tax payments

4. Using the Calculator

Tips:

• Enter your total 1099 income (before any deductions)
• Use your estimated combined tax rate (e.g., 0.30 for 30%)
• Include your calculated self-employment tax amount
• The result shows your estimated total tax liability

5. Frequently Asked Questions (FAQ)

Q1: What's a typical tax rate for 1099 income?
A: Rates vary but often 25-40% (federal + state + SE tax). The self-employment tax alone is 15.3%.

Q2: How do I calculate self-employment tax?
A: SE tax = 92.35% of net earnings × 15.3% (12.4% Social Security + 2.9% Medicare).

Q3: Can I deduct business expenses?
A: Yes, deduct valid business expenses from gross income to reduce taxable income.

Q4: When are 1099 taxes due?
A: Quarterly estimated payments are due April 15, June 15, September 15, and January 15.

Q5: Should I set aside money for taxes?
A: Yes, experts recommend setting aside 25-40% of 1099 income for taxes.