1099 Income Tax Calculator
Estimate your federal tax obligations as an independent contractor.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Standard Deduction
Itemized Deduction (enter amount below)
Estimated Total Tax:
$0.00
This is an estimate. Consult a tax professional for personalized advice.
Understanding Your 1099 Taxes
As an independent contractor, you receive income reported on Form 1099-NEC (Nonemployee Compensation) or 1099-MISC. Unlike traditional employees who have taxes withheld from their paychecks, you are responsible for calculating and paying your own federal income taxes and self-employment taxes.
Key Concepts:
- Gross Income: The total amount of money you earned from your freelance or contract work before any deductions.
- Deductible Business Expenses: Costs directly related to operating your business. These can significantly reduce your taxable income. Examples include home office expenses (if you meet specific IRS criteria), supplies, professional development, business insurance, and travel expenses.
- Self-Employment Tax: This covers Social Security and Medicare taxes, which are typically split between employer and employee. As a self-employed individual, you pay both halves. The rate is 15.3% on the first $168,600 (for 2024) of net earnings from self-employment, with 12.4% for Social Security and 2.9% for Medicare. You can deduct one-half of your self-employment tax.
- Income Tax: This is based on your taxable income after all deductions (including the deduction for one-half of self-employment tax). You'll use the federal income tax brackets based on your filing status.
- Deductions: You can either take the standard deduction or itemize your deductions. The standard deduction amounts vary by filing status and are updated annually by the IRS. You should choose the method that results in a lower taxable income.
How the Calculator Works:
This calculator estimates your federal tax liability. It performs the following steps:
- Calculate Net Earnings from Self-Employment: Gross 1099 Income minus Deductible Business Expenses.
- Calculate Self-Employment Tax: 92.35% of Net Earnings from Self-Employment multiplied by 15.3%.
- Calculate Deduction for One-Half of SE Tax: Self-Employment Tax divided by 2.
- Determine Total Deductions: This is the higher of the standard deduction for your filing status or your itemized deduction amount (if applicable and selected).
- Calculate Taxable Income: Net Earnings from Self-Employment minus the Deduction for One-Half of SE Tax and minus Total Deductions.
- Calculate Income Tax: Apply the appropriate federal income tax brackets based on your taxable income and filing status.
- Total Estimated Tax: Sum of Self-Employment Tax and Income Tax.
Note: Tax laws and figures change annually. This calculator uses 2023 standard deduction amounts for illustrative purposes. Always refer to the latest IRS guidelines or consult a tax professional.
Error:
Please enter a valid gross income.';
return;
}
if (isNaN(businessExpenses) || businessExpenses < 0) {
resultDiv.innerHTML = 'Error:
Please enter valid business expenses.';
return;
}
if (deductionType === 'itemized' && (isNaN(itemizedDeduction) || itemizedDeduction < 0)) {
resultDiv.innerHTML = 'Error:
Please enter a valid itemized deduction amount.';
return;
}
// 1. Calculate Net Earnings from Self-Employment
var netEarningsSE = grossIncome – businessExpenses;
if (netEarningsSE < 0) netEarningsSE = 0; // Cannot be negative
// 2. Calculate Self-Employment Tax (Social Security + Medicare)
// SE tax is calculated on 92.35% of net earnings
var taxableBaseSE = netEarningsSE * 0.9235;
var socialSecurityTax = Math.min(taxableBaseSE, 168600) * 0.124; // 2024 SS Limit
var medicareTax = taxableBaseSE * 0.029;
var totalSEtax = socialSecurityTax + medicareTax;
// 3. Calculate Deduction for One-Half of SE Tax
var seTaxDeduction = totalSEtax / 2;
// 4. Determine Total Deductions
var standardDeduction = standardDeductions[filingStatus] || 0;
var totalDeductions = 0;
if (deductionType === 'standard') {
totalDeductions = standardDeduction;
} else { // itemized
totalDeductions = Math.max(standardDeduction, itemizedDeduction);
}
// 5. Calculate Taxable Income
var taxableIncome = netEarningsSE – seTaxDeduction – totalDeductions;
if (taxableIncome < 0) taxableIncome = 0; // Cannot be negative
// 6. Calculate Income Tax
var incomeTax = 0;
var brackets = getTaxBrackets(filingStatus);
var previousLimit = 0;
for (var i = 0; i previousLimit) {
var taxableInBracket = Math.min(taxableIncome, bracket.limit) – previousLimit;
incomeTax += taxableInBracket * bracket.rate;
previousLimit = bracket.limit;
} else {
break;
}
}
// 7. Total Estimated Tax
var totalEstimatedTax = totalSEtax + incomeTax;
resultDiv.innerHTML = 'Estimated Total Tax:
$' + totalEstimatedTax.toFixed(2);
}