1099 Taxes Explained
What Is Self-Employment Tax?
As a 1099 independent contractor, you pay both the employer and employee portions of Social Security and Medicare taxes — totaling 15.3% on your first $168,600 of net earnings (2026). This is on top of regular income tax.
Quarterly Estimated Tax Payments
The IRS requires independent contractors to pay estimated taxes quarterly, not just at year-end. Missing quarterly deadlines results in underpayment penalties. Use our 1099 tax calculator above to estimate your quarterly obligation.
Tax Deductions for Freelancers
- Home office deduction ($5/sq ft up to 300 sq ft)
- Health insurance premiums
- Equipment and software
- Internet and phone (business portion)
- Professional services (accountant, lawyer)
- Continuing education and certifications
- Business travel and meals (50% deductible)
Disclaimer: This calculator provides estimates. Consult a tax professional for specific advice.