About this calculator
Freelance income is generally taxed twice at the federal level: self-employment tax (Social Security and Medicare) on net self-employment income, and federal income tax on taxable income after the standard deduction and the qualified business income (QBI) deduction. Because no employer withholds tax from freelance payments, the estimate below also shows a quarterly payment plan — the four 2026 estimated-tax due dates are April 15, June 15 and September 15, 2026, and January 15, 2027.
Not receiving a 1099 does not mean the income is not reportable: income from freelance work is generally reportable whether or not a form arrives, and a payer failing to send a form does not change that. Separately, net self-employment income of $400 or more generally means self-employment tax may be owed, even on a small amount of freelance income.
This is a federal estimate only. State tax is not included in this estimate: state tax rates and state estimated-payment dates are added only after they are verified against each state tax authority, so do not treat the total here as your full tax bill. All results are estimates for planning — consider consulting a CPA for your own situation.
How to use it
- Enter your total 1099 income for the year, including any freelance income for which no form was received.
- Subtract your business expenses to reach net self-employment income — enter expenses in the second field.
- Choose your filing status (v1 covers single and married filing jointly only).
- Add W-2 wages if you also hold an employer job, and any other income you expect for the year.
- Read the breakdown, then use the quarterly table and the print / download buttons to keep a copy of the plan.
The formula
Step 1: net income = total 1099 income minus business expenses. Step 2: taxable self-employment income = net income × 92.35%. Step 3: self-employment tax — Social Security is 12.4% of min(taxable self-employment income, max(0, $184,500 − W-2 wages)), so W-2 wages use up the wage base first; Medicare is 2.9% of taxable self-employment income with no cap; an additional 0.9% applies only to the part by which W-2 wages plus taxable self-employment income exceed $200,000 (single), $250,000 (married filing jointly) or $125,000 (married filing separately); the thresholds are fixed by statute and are not inflation-indexed (IRS Additional Medicare Tax Q&A). v1 computes single and married filing jointly only, so the separately threshold is shown for reference. Self-employment tax generally applies when net self-employment income is $400 or more. Step 4: AGI = net income + W-2 wages + other income − half of self-employment tax — note that W-2 wages are included in AGI by design, not just freelance income. Step 5: QBI = net income minus the deductible half of self-employment tax; the QBI deduction is min(20% × QBI, 20% × taxable income before the QBI deduction) — the smaller-of rule, not a flat 20% of net income. The SSTB phase-out is applied to the QBI deduction in v1 for every estimate (the tool has no SSTB/non-SSTB input): the deduction phases out linearly as taxable income before the QBI deduction rises from $201,750 to $276,750 (single) or $403,500 to $553,500 (married filing jointly), and is zero above the top of the range. A $400 minimum QBI deduction is not included in v1: its applicability is unverified. Step 6: federal income tax applies the 2026 brackets (Rev. Proc. 2025-32) to AGI minus the standard deduction ($16,100 single, $32,200 married filing jointly) minus the QBI deduction. Step 7: the quarterly plan splits the estimated total into four equal payments due 2026-04-15, 2026-06-15, 2026-09-15 and 2027-01-15; estimated tax of $1,000 or more generally means quarterly payments are expected, and below $1,000 the plan is still shown for planning. The underpayment safe harbor is generally 100% of the prior-year tax amount; if prior-year AGI was more than $150,000 ($75,000 if married filing separately), it is 110% of the prior-year tax amount. The test looks at prior-year AGI, not current-year income (26 U.S.C. § 6654(d)(1)(C); IRS Publication 505 (2026); Form 1040-ES). Step 8, reporting thresholds for 2026 (year of payment): 1099-NEC / 1099-MISC reporting at $2,000 (2025 payments still used $600; from 2027 the $2,000 threshold is inflation-indexed); royalties $10 and payments to attorneys $600 are unchanged; 1099-K applies above $20,000 and more than 200 transactions. These are payer reporting thresholds, not taxability thresholds — income below a reporting threshold is still generally reportable. State tax is not included in this estimate at any step above.
Worked example
A single filer with $60,000 of net self-employment income, no W-2 wages and no other income: taxable self-employment income is $60,000 × 92.35% = $55,410; Social Security tax is $55,410 × 12.4% = $6,870.84 and Medicare tax is $55,410 × 2.9% = $1,606.89, for self-employment tax of $8,477.73 (shown as $8,478). Half of that, $4,238.87, is subtracted to give AGI of $55,761.14. QBI is also $55,761.14, so the QBI deduction is the smaller of 20% × $55,761.14 ($11,152.23) and 20% × ($55,761.14 − $16,100) ($7,932.23) — $7,932.23. Taxable income is $31,728.91, and federal tax is $1,240 at 10% plus $2,319.47 at 12% = $3,559.47 (shown as $3,559). The estimated total is $8,477.73 + $3,559.47 = $12,037.20 (shown as $12,037), or $3,009.30 per quarter.
Sources: Tax year 2026: IRS Rev. Proc. 2025-32 federal brackets and standard deductions ($16,100 single, $32,200 married filing jointly); Social Security wage base $184,500; self-employment tax rules per IRS Schedule SE. State tax is not included — see the page notes. Last updated: October 2026.
Frequently asked questions
I did not receive a 1099. Do I still need to report the income?
Generally yes. Not receiving a 1099 does not mean the income is not reportable — freelance income is generally reportable whether or not a form arrives. Keep your own records of payments received, since the payer's reporting obligation and your reporting obligation are separate.
When is self-employment tax owed?
Generally, net self-employment income of $400 or more means self-employment tax may be owed, even on a small side income. Below that, the self-employment tax in this estimator is zero, but income tax may still apply depending on total income.
Why does the estimator suggest setting aside 25–30% of each payment?
That range is a commonly suggested planning rule of thumb for freelancers, because self-employment tax alone is 15.3% before income tax is added. Your own estimated effective rate is shown in the results — if it sits well below 25%, the lower end of the range may still be a reasonable buffer, and if it sits above 30%, consider consulting a CPA about your quarterly amounts.
Why is the QBI deduction not simply 20% of my net income?
The deduction is the smaller of 20% of QBI and 20% of taxable income before the QBI deduction. At $60,000 of net income, 20% of QBI would be $11,152, but 20% of pre-QBI taxable income is only $7,932 — and the smaller figure is the deduction. Using the flat 20% of net income would understate federal tax by roughly $500 in that example.
What are the Additional Medicare tax thresholds?
The 0.9% Additional Medicare tax applies only to the part of W-2 wages plus taxable self-employment income above $200,000 for single filers, $250,000 for married filing jointly, and $125,000 for married filing separately. The thresholds are fixed by statute and are not inflation-indexed, and self-employment income counts toward them together with W-2 wages (IRS Additional Medicare Tax Q&A). Note that v1 of this estimator computes single and married filing jointly only.
Does this estimate include state tax?
No. State tax is not included in this estimate. State tax rates and state estimated-payment dates vary by state and are added only after verification against each state tax authority. Treat the total here as a federal estimate, not a full tax bill.
What is the safe harbor against underpayment penalties?
In general terms, paying 100% of the prior-year tax amount through withholding and estimated payments is a commonly described safe harbor; if your prior-year AGI was more than $150,000 ($75,000 if married filing separately), the safe harbor is 110% of the prior-year tax amount. The test looks at the prior year's AGI, not the current year's income (26 U.S.C. § 6654(d)(1)(C); IRS Publication 505 (2026); Form 1040-ES). Consider consulting a CPA if your income rose sharply year over year.
What are the 2026 1099 reporting thresholds?
For payments made in 2026: 1099-NEC and 1099-MISC reporting generally starts at $2,000 (2025 payments still used $600, and from 2027 the $2,000 threshold is inflation-indexed). Royalties are reported at $10 and payments to attorneys at $600, unchanged. 1099-K applies above $20,000 and more than 200 transactions. Remember: these are payer reporting thresholds, not taxability thresholds.
What formula does this freelancer tax estimator calculator use?
Net income = 1099 income − business expenses; SE tax = Social Security + Medicare (+ 0.9% additional on the part above $200,000 single / $250,000 married filing jointly; $125,000 married filing separately); federal tax = brackets × (AGI − standard deduction − QBI deduction); total = SE tax + federal tax Step 1: net income = total 1099 income minus business expenses. Step 2: taxable self-employment income = net income × 92.35%. Step 3: self-employment tax — Social Security is 12.4% of min(taxable self-employment income, max(0, $184,500 − W-2 wages)), so W-2 wages use up the wage base first; Medicare is 2.9% of taxable self-employment income with no cap; an additional 0.9% applies only to the part by which W-2 wages plus taxable self-employment income exceed $200,000 (single), $250,000 (married filing jointly) or $125,000 (married filing separately); the thresholds are fixed by statute and are not inflation-indexed (IRS Additional Medicare Tax Q&A). v1 computes single and married filing jointly only, so the separately threshold is shown for reference. Self-employment tax generally applies when net self-employment income is $400 or more. Step 4: AGI = net income + W-2 wages + other income − half of self-employment tax — note that W-2 wages are included in AGI by design, not just freelance income. Step 5: QBI = net income minus the deductible half of self-employment tax; the QBI deduction is min(20% × QBI, 20% × taxable income before the QBI deduction) — the smaller-of rule, not a flat 20% of net income. The SSTB phase-out is applied to the QBI deduction in v1 for every estimate (the tool has no SSTB/non-SSTB input): the deduction phases out linearly as taxable income before the QBI deduction rises from $201,750 to $276,750 (single) or $403,500 to $553,500 (married filing jointly), and is zero above the top of the range. A $400 minimum QBI deduction is not included in v1: its applicability is unverified. Step 6: federal income tax applies the 2026 brackets (Rev. Proc. 2025-32) to AGI minus the standard deduction ($16,100 single, $32,200 married filing jointly) minus the QBI deduction. Step 7: the quarterly plan splits the estimated total into four equal payments due 2026-04-15, 2026-06-15, 2026-09-15 and 2027-01-15; estimated tax of $1,000 or more generally means quarterly payments are expected, and below $1,000 the plan is still shown for planning. The underpayment safe harbor is generally 100% of the prior-year tax amount; if prior-year AGI was more than $150,000 ($75,000 if married filing separately), it is 110% of the prior-year tax amount. The test looks at prior-year AGI, not current-year income (26 U.S.C. § 6654(d)(1)(C); IRS Publication 505 (2026); Form 1040-ES). Step 8, reporting thresholds for 2026 (year of payment): 1099-NEC / 1099-MISC reporting at $2,000 (2025 payments still used $600; from 2027 the $2,000 threshold is inflation-indexed); royalties $10 and payments to attorneys $600 are unchanged; 1099-K applies above $20,000 and more than 200 transactions. These are payer reporting thresholds, not taxability thresholds — income below a reporting threshold is still generally reportable. State tax is not included in this estimate at any step above. The worked example on this page applies the formula step by step with real numbers, so you can verify the result by hand.