1099 Tax Calculator
Estimate total taxes owed on 1099 self-employment income after business expenses, SE tax deduction, and 2026 federal brackets.
Understanding 1099 Taxes
Freelancers, contractors, and gig workers who receive 1099 forms face a higher tax burden than W-2 employees. They owe the full 15.3% FICA (both employee and employer portions) plus federal income tax. Reducing gross 1099 income with legitimate business expenses is the primary way to lower the tax bill.
Tracking Business Expenses
Common deductible expenses for 1099 workers: home office (simplified: $5/sqft up to 300 sqft), business mileage ($0.70/mile in 2026), professional subscriptions, equipment and technology, business insurance, and professional development. Good recordkeeping throughout the year is essential — keep receipts and use dedicated business accounts.
Retirement Contributions for 1099 Workers
Self-employed individuals have powerful retirement options. A SEP-IRA allows contributions of up to 25% of net SE income (max $69,000 in 2024), dramatically reducing taxable income. A Solo 401k allows even higher contributions. These accounts reduce both income tax and, because they lower net SE income, self-employment tax as well.