Estimate your federal income tax and self-employment tax obligations as an independent contractor.
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Estimated Tax Liability
Estimated Self-Employment Tax:
$0.00
Estimated Income Tax:
$0.00
Total Estimated Federal Tax:
$0.00
Note: This is an estimation. Consult a tax professional for accurate advice.
Understanding 1099 Taxes for Independent Contractors
As an independent contractor receiving 1099 forms, you are responsible for paying your own federal income taxes and self-employment taxes. Unlike traditional employees who have taxes withheld from their paychecks, 1099 workers must proactively manage these obligations.
Key Taxes for 1099 Workers:
Self-Employment Tax: This covers Social Security and Medicare taxes. For 2023, the self-employment tax rate is 15.3% on 92.35% of your net earnings from self-employment, up to certain income limits for Social Security.
Federal Income Tax: This is based on your taxable income, which is your gross income minus business expenses and applicable deductions (like the standard deduction or itemized deductions). Tax rates vary based on your income bracket and filing status.
How the Calculator Works:
This calculator provides an estimate based on the information you enter:
Net Earnings Calculation: We first calculate your net earnings from self-employment by subtracting your reported Deductible Business Expenses from your Gross Income.
Self-Employment Tax Calculation:
We calculate the taxable base for self-employment tax by multiplying your net earnings by 92.35%.
The Social Security portion is 12.4% up to the annual limit (for 2023, $160,200).
The Medicare portion is 2.9% with no income limit.
The total self-employment tax is the sum of these two components.
Deduction for One-Half of Self-Employment Tax: A portion of your self-employment tax is deductible on your federal income tax return. This calculator automatically deducts half of the calculated self-employment tax.
Taxable Income Calculation: Your taxable income is determined by subtracting your Standard or Itemized Deductions and the deductible portion of your self-employment tax from your gross income.
Income Tax Calculation: We then apply the relevant federal income tax brackets based on your Filing Status and the calculated taxable income. (Note: For simplicity, this calculator uses approximate 2023 tax brackets. Actual tax laws can be complex.)
Total Estimated Tax: The sum of your estimated self-employment tax and estimated income tax gives you the total federal tax liability.
Important Considerations:
Estimated Taxes: As a 1099 worker, you are generally required to pay estimated taxes quarterly to avoid penalties. This calculator helps you estimate these amounts.
State Taxes: This calculator only estimates federal taxes. You may also owe state income taxes depending on your location.
Qualified Business Income (QBI) Deduction: Depending on your income and business type, you might be eligible for the QBI deduction, which could further reduce your income tax. This calculator does not include the QBI deduction for simplicity.
Professional Advice: Tax laws are complex and change frequently. Always consult with a qualified tax professional or CPA for personalized advice and to ensure accurate tax filing.
function calculateTaxes() {
var grossIncome = parseFloat(document.getElementById("grossIncome").value);
var businessExpenses = parseFloat(document.getElementById("businessExpenses").value);
var deductions = parseFloat(document.getElementById("deductions").value);
var filingStatus = document.getElementById("filingStatus").value;
var selfEmploymentTaxResult = 0;
var incomeTaxResult = 0;
var totalTaxResult = 0;
// Input validation
if (isNaN(grossIncome) || grossIncome < 0 ||
isNaN(businessExpenses) || businessExpenses < 0 ||
isNaN(deductions) || deductions grossIncome) {
alert("Business expenses cannot be greater than gross income.");
return;
}
// — Self-Employment Tax Calculation —
var netEarnings = grossIncome – businessExpenses;
var seTaxableBase = netEarnings * 0.9235; // 92.35% of net earnings
// Social Security tax (12.4%) – 2023 limit is $160,200
var socialSecurityTax = 0;
var socialSecurityLimit2023 = 160200;
if (seTaxableBase > 0) {
socialSecurityTax = Math.min(seTaxableBase, socialSecurityLimit2023) * 0.124;
}
// Medicare tax (2.9%) – No limit
var medicareTax = 0;
if (seTaxableBase > 0) {
medicareTax = seTaxableBase * 0.029;
}
selfEmploymentTaxResult = socialSecurityTax + medicareTax;
// — Income Tax Calculation —
var deductibleSETax = selfEmploymentTaxResult / 2;
var taxableIncome = grossIncome – businessExpenses – deductions – deductibleSETax;
// Ensure taxable income is not negative
if (taxableIncome < 0) {
taxableIncome = 0;
}
// Approximate 2023 Federal Income Tax Brackets (subject to change)
var taxRates = {
single: [
{ limit: 11000, rate: 0.10 },
{ limit: 44725, rate: 0.12 },
{ limit: 95375, rate: 0.22 },
{ limit: 182100, rate: 0.24 },
{ limit: 231250, rate: 0.32 },
{ limit: 578125, rate: 0.35 },
{ limit: Infinity, rate: 0.37 }
],
married_filing_jointly: [
{ limit: 22000, rate: 0.10 },
{ limit: 89450, rate: 0.12 },
{ limit: 190750, rate: 0.22 },
{ limit: 364200, rate: 0.24 },
{ limit: 462500, rate: 0.32 },
{ limit: 693750, rate: 0.35 },
{ limit: Infinity, rate: 0.37 }
],
married_filing_separately: [ // Same brackets as single for 2023
{ limit: 11000, rate: 0.10 },
{ limit: 44725, rate: 0.12 },
{ limit: 95375, rate: 0.22 },
{ limit: 182100, rate: 0.24 },
{ limit: 231250, rate: 0.32 },
{ limit: 578125, rate: 0.35 },
{ limit: Infinity, rate: 0.37 }
],
head_of_household: [
{ limit: 15800, rate: 0.10 },
{ limit: 59850, rate: 0.12 },
{ limit: 95350, rate: 0.22 },
{ limit: 182100, rate: 0.24 },
{ limit: 231250, rate: 0.32 },
{ limit: 578125, rate: 0.35 },
{ limit: Infinity, rate: 0.37 }
]
};
var currentRates = taxRates[filingStatus];
var incomeTaxDue = 0;
var previousLimit = 0;
for (var i = 0; i previousLimit) {
taxableAmountInBracket = Math.min(taxableIncome, bracket.limit) – previousLimit;
incomeTaxDue += taxableAmountInBracket * bracket.rate;
previousLimit = bracket.limit;
} else {
break; // Taxable income has been fully accounted for
}
// If the bracket limit is Infinity, we've covered all income
if (bracket.limit === Infinity) {
break;
}
}
incomeTaxResult = incomeTaxDue;
totalTaxResult = selfEmploymentTaxResult + incomeTaxResult;
// Format results to two decimal places
document.getElementById("selfEmploymentTaxResult").innerText = "$" + selfEmploymentTaxResult.toFixed(2);
document.getElementById("incomeTaxResult").innerText = "$" + incomeTaxResult.toFixed(2);
document.getElementById("totalTaxResult").innerText = "$" + totalTaxResult.toFixed(2);
}