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1099 Tax Calculator

Use Keeper’s 1099 tax calculator to see an estimate of your tax bill or refund. Feel free to tinker around, or get serious with our advanced info fields.

Your details

Student tuition payments are amounts paid for education expenses, such as tuition and required fees, to attend an eligible educational institution. These payments can qualify you for education-related tax credits or deductions, like the American Opportunity Credit or Lifetime Learning Credit, which can reduce your overall tax liability.

Mortgage interest is the interest you pay on a loan secured by your home, which can include a mortgage on your primary residence or a second home. This interest is often deductible on your federal income tax return, potentially lowering your taxable income if you itemize deductions.

Traditional IRA contributions are amounts you can contribute to a retirement account, which may be tax-deductible depending on your income and whether you have a retirement plan at work. The contributions grow tax-deferred, meaning you won't pay taxes on the earnings until you withdraw the money during retirement.

Quarterly tax payments are estimated tax payments made four times a year to cover income that isn't subject to withholding, such as self-employment income, interest, dividends, and rental income. These payments help you avoid underpayment penalties and ensure you're paying taxes throughout the year as you earn income.

Keeper assumes a standard withholding by your employer's payroll provider. If you know the exact withholding, you can enter it here for an even more accurate tax refund estimate!

Your tax refund estimate

Federal tax bill
$1,509
CA State tax bill
$411
Adjusted gross income

This is your total income for the year minus certain adjustments, such as contributions to retirement accounts, student loan interest, and self-employment taxes. your total income for the year minus certain adjustments, such as contributions to retirement accounts, student loan interest, and self-employment taxes.

$79,647
Standard deduction

The standard deduction is a fixed dollar amount that reduces the income you're taxed on, simplifying the tax filing process. It varies based on your filing status (e.g., single, married filing jointly) and is adjusted annually for inflation.

-$13,850
Business deductions

Itemized business deductions are specific expenses that you can deduct from your 1099 / business income to reduce your taxable income. These can include costs like office supplies, travel expenses, advertising, and professional services, as long as they are ordinary and necessary for your business.

???
Other deductions

Common deductions include state and local taxes, mortgage interest, charitable contributions, student loan interest, retirement contributions, and educational expenses. This line also includes the Qualified Business Income (QBI) deduction, which allows a 20% deduction on qualified 1099 / business income.

−$1,000
Taxable income

Taxable income is the portion of your income that is subject to federal income tax after accounting for deductions and exemptions. It includes wages, salaries, bonuses, and other forms of income, minus any allowable deductions like the standard deduction or itemized deductions.

$64,797
Credits

The most common tax credits people can claim include the Earned Income Tax Credit (EITC), Child Tax Credit, American Opportunity Credit, Lifetime Learning Credit, and the Premium Tax Credit. These credits can reduce the amount of tax you owe or increase your refund.

−$0
Gross taxes

Gross taxes refer to the total amount of tax liability before accounting for any tax credits or payments made throughout the year. It represents the initial calculation of taxes owed based on your taxable income and applicable tax rates.

$16,007
Taxes withheld

This refers to the amount of federal and state taxes that are taken out of your paycheck by your employer throughout the year. Keeper assumes a standard withholding by default. If you know your employer's exact withholding, you can input it under "Add advanced info".

−$14,498
Quarterly tax payments

Quarterly tax payments are estimated tax payments made four times a year to cover income that isn't subject to withholding, such as 1099 / business income, interest, dividends, and rental income. These payments help you avoid underpayment penalties and ensure you're paying taxes throughout the year as you earn income.

−$0
Estimated federal tax bill
$1,509
Estimated CA tax bill
$411

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* actual average deductions claimed by Keeper customers with income profiles similar to yours.

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by

Sarah is an Enrolled Agent with the IRS and a former staff writer at Keeper. In 2022, she was named one of CPA Practice Advisor’s 20 Under 40 Top Influencers in the field of accounting. Her work has been featured in Business Insider, Money Under 30, Best Life, GOBankingRates, and Shopify. Sarah has spent nearly a decade in public accounting and has extensive experience offering strategic tax planning at the state and federal level. Her clients have come from a wide range of industries, including oil and gas, manufacturing, real estate, wholesale and retail, finance, and ecommerce, and she has handled tax returns for C corps, S corps, partnerships, nonprofits, and sole proprietorships. In her spare time, she is a devoted cat mom and enjoys hiking, painting, and overwatering her houseplants.

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Reviewed by
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Reviewed by
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This content has been reviewed by an Enrolled Agent (EA) with the IRS — the highest credential awarded by the agency. Enrolled Agents are empowered to represent all taxpayers before the IRS, on all types of tax-related matters. Accountants who earn this certification have passed a comprehensive three-part exam on individual and business tax returns. To maintain EA status, they must stay up to date in the field by completing 72 hours of continuing education every three years.

The gig economy seems to be the new way of the world. More people than ever are freelancing, earning side income, and becoming small business owners.

After all, isn't that why you're using this calculator? You — and thousands of taxpayers like you — are learning how to navigate 1099 taxes. And that starts with figuring out how much self-employment tax you have to pay.

What does it mean to have 1099 income? 

Any income that’s reported on a 1099-NEC or 1099–K is considered “self-employment income.”

Self-employment income is just code for “non-W-2.” It can come from running a small business, freelancing, or just working a casual side hustle.

When you work as a standard employee, your employer automatically withholds your income and FICA taxes (Social Security taxes and Medicare taxes) and pays them to the IRS.

Self-employed individuals, on the other hand, have to calculate and pay these taxes themselves. 

Estimate tax saving

Track and claim every eligible deduction with Keeper

Keeper is the top-rated all-in-one business expense tracker, tax filing service, and personal accountant.

Paying taxes as a 1099 worker

As a 1099 earner, you’ll have to deal with self-employment tax, which is basically just how you pay FICA taxes. The combined tax rate is 15.3%.

Normally, the 15.3% rate is split half-and-half between employers and employees. But since independent contractors and sole proprietors don’t have separate employers, they’re on the hook for the full amount. (To get a sense of how this might impact your taxes, take a look at this 1099 vs. W-2 calculator, which compares your take-home pay from both types of work.)

If you’d like more information on why things work this way, check out our beginner’s guide to self-employment tax.

But for now, think of self-employment tax as those double-pop popsicles. It can be split between two people, but it comes in a single package. There’s no way to avoid paying for both sticks even if it’s just you.

Self Employment

Here's some good news, though: Only your net earnings are subject to self-employment taxes. That’s your gross income minus your business write-offs. (More on this later!) 

Income tax vs. self-employment tax: Why you owe both

Many freelancers are surprised to learn they have to pay multiple types of taxes on their return. It seems like it should be an either/or tax situation, right?

Wrong.

Self-employed individuals have to pay both income tax and self-employment taxes.

So what’s the difference? In short, your income tax is assessed on your total income for the year, whereas self-employment tax is assessed on your business income for the year.

Your income tax can be reduced through adjustments (like for self-employed health insurance), the standard deduction or itemized deductions, and tax credits.

Your self-employment tax, on the other hand, can only be reduced through business write-offs and tax credits. 

How to pay your 1099 taxes

If you think you might owe more than $1,000 in federal income taxes, you should be making payments throughout the year — not just when you file your return.

These additional payments are referred to as “quarterly” or “estimated” tax payments. You pay your quarterly taxes on the 15th day following the end of the quarter.

For example, let’s say you expect to owe $2,000 in taxes. You would divide that amount by four and make your quarterly tax payments on the following schedule:

Quarter Period Due date Payment
Quarter 1 January - March April 15 $500
Quarter 2 April - June July 15 $500
Quarter 3 July - September October 15 $500
Quarter 4 October - December January 15 $500

We haven’t gotten into all the nitty-gritty here — like the forms that are involved in the filing process. If you’re interested in more details, check out our blog post on how to pay self-employment taxes step by step.

The 3 best ways to lower self-employment tax

Now for the fun part — lowering your tax bill! As I mentioned earlier, the only way to effectively reduce self-employment taxes is to lower your net income.

Here are the three best ways to avoid paying extra taxes on your 1099 income

Tip #1: Don’t miss your business write-offs

Most write-offs are missed because people don’t keep track of what they buy for work. In the frenzy to pull everything together before taxes are due, eligible write-offs tend to fall through the cracks. 

Do yourself a favor and start keeping up with your expenses now. More of your purchases count as business expenses than you might realize, and they could significantly lower your taxable income. Here are a few examples of business tax deductions you can take: 

If you’re wondering where to start with this, you’ve come to the right place. The Keeper app is specifically designed for gig and freelance workers in the United States.

The app will find and sort all of your business write-offs automatically.  When you’re ready to file, all you have to do is upload your 1099s and we’ll handle the rest. 

Tip #2: Consider deferring your business income

This isn’t a feasible option for everyone. (Rideshare or delivery drivers, for example, are locked into a relatively inflexible payment schedule.) But for those of you who invoice clients, consider delaying your December invoicing until the New Year.

Here’s why: A payment you receive on December 31st has to be reported on your tax return by the following April. However, a payment you get on January 1st doesn’t have to be reported until April of the following year. That’s 11 extra months!

For example, if your business rent is due January 5, pay it December 30. This will allow you to claim more deductions in the current tax year— essentially borrowing from next year’s write-offs.

Payment received December 31st with tax four months later. Payment received January 1st with tax due 16 months later

Delaying your income by just a few days can give you lots of extra breathing room to plan for taxes. 

Tip #3: Prepay your work expenses

If you know you’re in for a painful tax bill, this strategy could help.

Here’s how it works: rather than waiting till January to pay your regularly scheduled bills, pay them in December instead.

If you’re going to use this strategy, it’s important to look ahead first. Here are some scenarios where prepaying could be a beneficial move and help you save money overall: 

  • You owe a sizable tax bill and haven’t made any estimated payments.
    In this situation, reducing your tax liability by prepaying expenses is a good idea. The lower your tax liability, the less you’ll pay in underpayment penalties and interest. 
  • You don’t expect to have much — or any — self-employment income next year.
    People change jobs and hop careers all the time. If you expect a major change to the type of income you’re earning, it’s probably worthwhile to maximize your write-offs now. 
  • You expect to have more tax-saving opportunities next year.
    If you recall, only two things can lower self-employment tax: business write-offs and tax credits. So for example, if you plan to enroll in college, you’ll have a sizable tax credit to play with. In that case, borrowing from next year’s write-offs probably won’t hurt you. 

You can’t write off an expense that’s more than 12 months away, but this strategy can still give you a bit of much-needed wiggle room during stressful years.

At the end of the day, Keeper has your back. We’re your cheerleader, quarterback, and defensive lineman all rolled into one. Keep using our free tools like this one, and download the app today. Let us help you score a tax refund.

1099 tax glossary

1099

A 1099 form is a type of form used to report payments that aren’t from a W-2 employer. There are many different types of 1099 form, including, but but limited to:

1099-K

A 1099-K form is used to report payments received through third-party network transactions, such as those made by credit card or via online payment services like PayPal and Venmo. 

For the 2024 tax year, individuals who received $5,000 or more on one of these platforms will receive a 1099-K. In future years, the IRS plans to implement a threshold of $600 across any number of transactions — the $5,000 figure is intended as a “phase-in.”

1099-NEC

A 1099-NEC form is a type of 1099 form that reports “nonemployee compensation” to the IRS. If you’re an independent contractor for a client during the year and make over $600 across any number of payments, you should receive a 1099-NEC from that client.

1099-B

A 1099-B form reports proceeds from broker and barter exchange transactions to the IRS. This includes the sale of stocks, bonds, and other securities. You might be familiar with this form if you trade on Robinhood, for example.

Audit

In the tax world, an audit is an IRS review of someone’s financial records to make sure their tax return is accurate. An audit can be random or it can be triggered by a red flag on the return you file. Don’t worry too much, though: Less than 1% of all U.S. tax returns get audited by the IRS. 

FICA

FICA stands for the Federal Insurance Contributions Act, and is a tax all working Americans pay. It’s actually comprised of two taxes — Social Security and Medicare — and all earned income is subject to it. 

W-2 employees have FICA automatically deducted from their paycheck, but self-employed workers must pay it themselves. And while W-2 employers and their employees split the tax (7.65% and 7.65%), self-employed people are on the hook for the whole 15.3%.

Income tax

Income tax is a tax imposed on individuals and businesses based on their earnings or income. It is typically progressive, meaning the rate increases as the amount of taxable income increases.

Independent contractor

An independent contractor is a self-employed worker who does gigs for clients, but is not their employee. Independent contractors report their income using Form Schedule C.

IRS

The IRS is the Internal Revenue Service, the U.S. government agency that collects federal taxes, conducts audits, and enforces tax law.

“Ordinary and necessary”

Business expenses that the IRS considers “ordinary and necessary” are both common for your industry and helpful for your business’s function. If you’re a 1099 worker, you’ll be able to write these business expenses off on your taxes.

Quarterly taxes

Quarterly taxes are estimated tax payments that many self-employed individuals must make at regular intervals throughout the year. Quarterly tax payments are due on:

  • April 15
  • June 15
  • September 15
  • January 15 of the next year

Schedule C

Schedule C is a form used to report self-employment income on a personal tax return.

Schedule SE

Schedule SE is a form used to calculate the tax due on self-employment income.

Self-employment tax

Self-employment tax covers your Medicare and Social Security tax obligations as a self-employed worker.

Side hustle

A side hustle is 1099 work done in addition to a W-2 job. For example, if you work a 9-5 job as a marketing coordinator but run an Etsy shop in your spare time, that Etsy shop is a side hustle. (Sorry, you’ll still have to pay taxes on both sources of income.)

Sole proprietor

A sole proprietor is an individual who runs a business solo, without any formal legal structure. This person is also personally responsible for all business debts and liabilities.

Tax deduction

A tax deduction (also called a tax write-off) is an expense you can subtract from your taxable income. A lower taxable income means a smaller tax bill! Examples of tax deductions include:

  • Eligible business expenses
  • Student loan interest
  • Charitable donations

Tax credit

Like a tax deduction, a tax credit is a tax incentive. However, a tax credit directly lowers the amount of tax you owe instead of lowering your taxable income.

Tax rate

A tax rate is the percentage at which an individual or business’s income is taxed. Depending on the system, it can be progressive, regressive, or proportional:

  • Progressive tax rate: Tax rate increases with income
  • Regressive tax rate: Everyone pays the same dollar amount, regardless of income
  • Proportional tax rate: Everyone is assessed the same tax rate, regardless of income

Tax write-off

A tax write-off is another name for a tax deduction.

W-2

The W-2 form is issued by employers to employees and details wages earned and taxes withheld during the year. Employees use this form to file their annual tax returns.

W-4

The W-4 is a form filled out by an employee at the beginning of a job to let the employer know how much tax should be withheld from each paycheck.

FAQ

Can I get both a 1099 and a W-2?
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Yes, it’s possible to have both 1099 income and W-2 income. Most people with a full-time job and a side hustle fit into this category.

For example, let’s say you’re a marketing professional who has a salaried job at an agency but also offers consulting services to clients on the side. You’d receive a W-2 from your salaried job and 1099 forms from your clients.

What is the 1099 tax rate?
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1099 workers are taxed at a 15.3% self-employment rate. Normally, this 15.3% is split equally between employers and employees. However, self-employed workers are both the employer and the employee, so they’re on the hook for both halves.

How do I pay less in taxes?
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If you have 1099 income, the best way to save on taxes is to make sure you’re taking all the business deductions available to you. This will lower the amount of income you’re taxed on, thus lowering your tax bill.

How much can I make on a 1099 before I have to claim it?
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If you make over $400 in 1099 income, you should plan to file taxes — whether that income appears on a 1099 or not.

Why might employers prefer 1099s?
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There are several ways in which working with 1099 contractors might be advantageous for employers than hiring W-2 employees, including:

  • Cost savings. When employers opt for 1099 contractors, they’ll save on taxes as well as the cost of benefits for a full-time W-2 employee.
  • Flexibility. Contracting with 1099 workers is often ideal for short-term, project-based hiring. Need a web developer for a one-month project only? A contractor is the way to go.
  • Highly specialized skills. Connecting with the right 1099 contractor means an employer can find exactly who they need for a particular project or task — with minimal training required.
What are some pros and cons of 1099 work?
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Not sure whether you should pursue 1099 work? Here are some pros and cons to consider.

Pros of self-employment

  • You can set your own hours
  • You can choose your clients — and nix the ones that aren’t working for you
  • Working with multiple clients often means a varied and exciting work environment

Not sure whether you should pursue 1099 work? Here are some pros and cons to consider.

Cons of self-employment

  • Your income can be inconsistent throughout the year, meaning you’ll have to budget carefully
  • You won’t receive benefits like company-sponsored healthcare, sick leave, or paid time off
How much should I set aside for 1099 taxes?
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As a general rule, you should plan to set 20-30% of your self-employment income aside for taxes. You can also get a solid estimate using Keeper’s self-employment tax rate calculator.

How do I file my 1099 taxes?
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You’ll file your 1099 taxes using the following forms:

  • Schedule C
  • Schedule SE
  • Form 1040

 You may also need to file other forms, depending on your particular tax situation. Check out Keeper’s guide to filing self-employment taxes for step-by-step instructions.

1099 tax glossary

1099

A 1099 form is a type of form used to report payments that aren’t from a W-2 employer. There are many different types of 1099 form, including, but but limited to:

1099-K

A 1099-K form is used to report payments received through third-party network transactions, such as those made by credit card or via online payment services like PayPal and Venmo. 

For the 2024 tax year, individuals who received $5,000 or more on one of these platforms will receive a 1099-K. In future years, the IRS plans to implement a threshold of $600 across any number of transactions — the $5,000 figure is intended as a “phase-in.”

1099-NEC

A 1099-NEC form is a type of 1099 form that reports “nonemployee compensation” to the IRS. If you’re an independent contractor for a client during the year and make over $600 across any number of payments, you should receive a 1099-NEC from that client.

1099-B

A 1099-B form reports proceeds from broker and barter exchange transactions to the IRS. This includes the sale of stocks, bonds, and other securities. You might be familiar with this form if you trade on Robinhood, for example.

Audit

In the tax world, an audit is an IRS review of someone’s financial records to make sure their tax return is accurate. An audit can be random or it can be triggered by a red flag on the return you file. Don’t worry too much, though: Less than 1% of all U.S. tax returns get audited by the IRS. 

FICA

FICA stands for the Federal Insurance Contributions Act, and is a tax all working Americans pay. It’s actually comprised of two taxes — Social Security and Medicare — and all earned income is subject to it. 

W-2 employees have FICA automatically deducted from their paycheck, but self-employed workers must pay it themselves. And while W-2 employers and their employees split the tax (7.65% and 7.65%), self-employed people are on the hook for the whole 15.3%.

Income tax

Income tax is a tax imposed on individuals and businesses based on their earnings or income. It is typically progressive, meaning the rate increases as the amount of taxable income increases.

Independent contractor

An independent contractor is a self-employed worker who does gigs for clients, but is not their employee. Independent contractors report their income using Form Schedule C.

IRS

The IRS is the Internal Revenue Service, the U.S. government agency that collects federal taxes, conducts audits, and enforces tax law.

“Ordinary and necessary”

Business expenses that the IRS considers “ordinary and necessary” are both common for your industry and helpful for your business’s function. If you’re a 1099 worker, you’ll be able to write these business expenses off on your taxes.

Quarterly taxes

Quarterly taxes are estimated tax payments that many self-employed individuals must make at regular intervals throughout the year. Quarterly tax payments are due on:

  • April 15
  • June 15
  • September 15
  • January 15 of the next year

Schedule C

Schedule C is a form used to report self-employment income on a personal tax return.

Schedule SE

Schedule SE is a form used to calculate the tax due on self-employment income.

Self-employment tax

Self-employment tax covers your Medicare and Social Security tax obligations as a self-employed worker.

Side hustle

A side hustle is 1099 work done in addition to a W-2 job. For example, if you work a 9-5 job as a marketing coordinator but run an Etsy shop in your spare time, that Etsy shop is a side hustle. (Sorry, you’ll still have to pay taxes on both sources of income.)

Sole proprietor

A sole proprietor is an individual who runs a business solo, without any formal legal structure. This person is also personally responsible for all business debts and liabilities.

Tax deduction

A tax deduction (also called a tax write-off) is an expense you can subtract from your taxable income. A lower taxable income means a smaller tax bill! Examples of tax deductions include:

  • Eligible business expenses
  • Student loan interest
  • Charitable donations

Tax credit

Like a tax deduction, a tax credit is a tax incentive. However, a tax credit directly lowers the amount of tax you owe instead of lowering your taxable income.

Tax rate

A tax rate is the percentage at which an individual or business’s income is taxed. Depending on the system, it can be progressive, regressive, or proportional:

  • Progressive tax rate: Tax rate increases with income
  • Regressive tax rate: Everyone pays the same dollar amount, regardless of income
  • Proportional tax rate: Everyone is assessed the same tax rate, regardless of income

Tax write-off

A tax write-off is another name for a tax deduction.

W-2

The W-2 form is issued by employers to employees and details wages earned and taxes withheld during the year. Employees use this form to file their annual tax returns.

W-4

The W-4 is a form filled out by an employee at the beginning of a job to let the employer know how much tax should be withheld from each paycheck.

Sarah York, EA

GlobalTwitter

Sarah is an Enrolled Agent with the IRS and a former staff writer at Keeper. In 2022, she was named one of CPA Practice Advisor’s 20 Under 40 Top Influencers in the field of accounting. Her work has been featured in Business Insider, Money Under 30, Best Life, GOBankingRates, and Shopify. Sarah has spent nearly a decade in public accounting and has extensive experience offering strategic tax planning at the state and federal level. Her clients have come from a wide range of industries, including oil and gas, manufacturing, real estate, wholesale and retail, finance, and ecommerce, and she has handled tax returns for C corps, S corps, partnerships, nonprofits, and sole proprietorships. In her spare time, she is a devoted cat mom and enjoys hiking, painting, and overwatering her houseplants.