What "1099 income" means for your taxes
A 1099 is the form a business sends when it pays you as a non-employee — most often a 1099-NEC for freelance or contract work, or a 1099-K for payments through platforms and card processors. Unlike a W-2 job, no tax is withheld from 1099 pay, so the tax is yours to calculate and set aside.
Two taxes on 1099 income
You pay self-employment tax of 15.3% (Social Security + Medicare, on 92.35% of your net income) plus federal income tax at the normal 2026 brackets. Half of the SE tax is deductible before income tax, which this calculator applies.
1099 vs W-2: why it feels like more
On a W-2 your employer quietly pays half of Social Security and Medicare. On a 1099 you cover both halves — that's the extra ~7.65% that surprises first-time freelancers. The upside is that legitimate business expenses reduce the income you're taxed on.
Example: $80,000 of 1099 income
SE tax is about $11,304 and federal income tax about $7,527 — roughly $18,830 total, leaving about $61,170. Set aside ~25–30% as you go and consider quarterly estimated payments to avoid a penalty.
What's the difference between a 1099 and a W-2?
A W-2 reports employee wages with tax already withheld; a 1099 reports payments to a non-employee with nothing withheld, so you owe self-employment tax and must handle your own income tax.
Do I get a 1099 if I earned under $600?
A payer generally isn't required to issue a 1099-NEC under $600, but you still owe tax on the income — reporting doesn't depend on receiving the form.
More United States calculators
This calculator provides estimates for a single filer in 2026 based on IRS rules and is for general information only — it is not financial or tax advice. It applies the standard deduction and excludes the QBI deduction, state/local tax, the additional 0.9% Medicare, credits and other deductions. See IRS Self-Employed. Sources: IRS, SSA.