1099 & Self-Employment Tax Calculator
Calculate your monthly tax reserve for 1099 income, freelance work, and small business profit.
Deductible items include software, equipment, business mileage (67¢/mi), home office square footage, phone/internet portions, and professional fees.
Note: State and local income taxes are not included. If filing quarterly estimated taxes (Form 1040-ES), divide your annual total by 4.
Side Hustle Income Expense Tracker
Need multi-tab modeling, customized client exports, and full Schedule tax preparation? Download the unlocked Microsoft Excel and Google Sheets workbook.
1099 income doesn't withhold taxes. Avoid an unexpected tax-day surprise.
When you earn 1099 or business income, no employer withholds taxes from your checks. You are responsible for both the employee and employer portions of FICA (15.3% self-employment tax) plus your marginal federal income tax. This calculator determines the exact dollar amount to set aside each month into a high-yield tax escrow account.
Calculation Methodology & Steps
- 1Net Business Earnings = Gross Monthly Revenue minus Legitimate Business Expenses (deductions).
- 2Self-Employment Tax = Net Earnings × 15.3% (Social Security + Medicare).
- 3Adjusted Taxable Income = Net Earnings minus 50% of SE Tax Deduction.
- 4Monthly Tax Reserve = Total Estimated Tax ÷ 12.
Market Benchmarks
As a rule of thumb, most solo operators should set aside 25% to 30% of net monthly earnings for federal and self-employment taxes.