Estimate your federal and self-employment tax obligations as an independent contractor.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Enter your estimated standard or itemized deductions.
Estimated Tax Liability
$0.00
This is a preliminary estimate. Consult a tax professional for accurate advice.
Understanding Your 1099 Tax Obligations
As an independent contractor receiving payments reported on Form 1099-NEC (Nonemployee Compensation) or 1099-MISC, you are responsible for paying both income tax and self-employment tax (Social Security and Medicare). Unlike employees who have taxes withheld from their paychecks, 1099 workers must estimate and pay these taxes quarterly to avoid penalties.
Key Concepts:
Gross Income: This is the total amount of money you earned from your contract work before any expenses are deducted.
Business Expenses: These are ordinary and necessary costs incurred in your trade or business. Deducting these expenses reduces your taxable income. Examples include home office expenses, supplies, professional development, and equipment.
Net Earnings from Self-Employment: Calculated as Gross Income minus Business Expenses. This is the amount subject to self-employment tax.
Self-Employment Tax: This tax covers Social Security (12.4% up to an annual limit) and Medicare (2.9% with no limit). The self-employment tax rate is 15.3% on 92.35% of your net earnings from self-employment. You can deduct one-half of your self-employment tax in calculating your adjusted gross income.
Income Tax: This is based on your taxable income, which is your net earnings from self-employment (after the SE tax deduction) minus your standard or itemized deductions.
Quarterly Estimated Taxes: To avoid penalties, you generally need to pay estimated tax if you expect to owe at least $1,000 in tax for the year. Payments are typically due on April 15, June 15, September 15, and January 15 of the following year.
How the Calculator Works:
This calculator provides an estimate of your total tax liability. The steps involved are:
Calculate Net Earnings from Self-Employment: Gross Income – Business Expenses.
Calculate Self-Employment Tax: Multiply Net Earnings by 0.9235. Then, calculate 15.3% of this amount.
Calculate Deductible Portion of SE Tax: Divide the Self-Employment Tax by 2. This amount is deductible for income tax purposes.
Calculate Taxable Income: Net Earnings from Self-Employment – Deductible Portion of SE Tax – Your chosen Deductions (Standard or Itemized).
Estimate Income Tax: This calculator uses simplified tax brackets for 2023/2024. For accuracy, consult official IRS tax tables or a tax professional. The result here is a rough estimate.
Total Estimated Tax: Sum of the estimated Income Tax and the total Self-Employment Tax.
Disclaimer: This calculator is for estimation purposes only and does not constitute tax advice. Tax laws are complex and subject to change. Consult with a qualified tax professional for personalized advice.
function calculateTaxes() {
var grossIncome = parseFloat(document.getElementById("grossIncome").value) || 0;
var businessExpenses = parseFloat(document.getElementById("businessExpenses").value) || 0;
var filingStatus = document.getElementById("filingStatus").value;
var deductions = parseFloat(document.getElementById("deductions").value) || 0;
var SE_TAX_RATE = 0.153;
var SE_TAXABLE_PERCENTAGE = 0.9235;
// Basic income tax brackets (simplified for estimation – actual rates and brackets vary by year and are more complex)
// Using 2023 tax brackets as an example – these should be updated annually for accuracy
var taxBrackets = {
single: {
10: { limit: 11000, rate: 0.10 },
12: { limit: 44725, rate: 0.12 },
22: { limit: 95375, rate: 0.22 },
24: { limit: 182100, rate: 0.24 },
32: { limit: 231250, rate: 0.32 },
35: { limit: 578125, rate: 0.35 },
37: { limit: Infinity, rate: 0.37 }
},
married_jointly: {
10: { limit: 22000, rate: 0.10 },
12: { limit: 89450, rate: 0.12 },
22: { limit: 190750, rate: 0.22 },
24: { limit: 364200, rate: 0.24 },
32: { limit: 462500, rate: 0.32 },
35: { limit: 693750, rate: 0.35 },
37: { limit: Infinity, rate: 0.37 }
},
married_separately: {
10: { limit: 11000, rate: 0.10 },
12: { limit: 44725, rate: 0.12 },
22: { limit: 95375, rate: 0.22 },
24: { limit: 182100, rate: 0.24 },
32: { limit: 231250, rate: 0.32 },
35: { limit: 289062, rate: 0.35 }, // Different limit than single
37: { limit: Infinity, rate: 0.37 }
},
head_of_household: {
10: { limit: 15700, rate: 0.10 },
12: { limit: 59850, rate: 0.12 },
22: { limit: 95350, rate: 0.22 },
24: { limit: 182100, rate: 0.24 },
32: { limit: 231250, rate: 0.32 },
35: { limit: 578125, rate: 0.35 },
37: { limit: Infinity, rate: 0.37 }
}
};
// Standard deductions for 2023 (example)
var standardDeductions = {
single: 13850,
married_jointly: 27700,
married_separately: 13850,
head_of_household: 20800
};
var netEarnings = Math.max(0, grossIncome – businessExpenses);
var seTaxableIncome = netEarnings * SE_TAXABLE_PERCENTAGE;
var selfEmploymentTax = seTaxableIncome * SE_TAX_RATE;
var deductibleSeTax = selfEmploymentTax / 2;
// Ensure the provided deductions are at least the standard deduction if filing status provides one,
// unless the user explicitly entered a higher itemized deduction.
var actualDeductions = Math.max(deductions, standardDeductions[filingStatus] || 0);
var taxableIncome = Math.max(0, netEarnings – deductibleSeTax – actualDeductions);
var incomeTax = 0;
var currentTaxableIncome = taxableIncome;
var brackets = taxBrackets[filingStatus];
var rates = Object.keys(brackets).sort(function(a, b) { return parseInt(a) – parseInt(b); });
for (var i = 0; i 0) {
if (rate === 37) { // Highest bracket
taxableInBracket = currentTaxableIncome;
} else {
var upperLimit = Math.min(currentTaxableIncome, bracketLimit);
taxableInBracket = Math.max(0, upperLimit);
}
incomeTax += taxableInBracket * bracketRate;
currentTaxableIncome -= taxableInBracket;
}
if (currentTaxableIncome <= 0) {
break;
}
}
var totalTax = incomeTax + selfEmploymentTax;
document.getElementById("result-value").innerText = "$" + totalTax.toFixed(2);
}