US 1099 Self-Employment Tax Calculator

1099 Taxes Explained: What Self-Employed Workers Pay

If you receive a 1099-NEC (non-employee compensation), you're self-employed in the eyes of the IRS. Unlike W-2 employees, no taxes are withheld — you're responsible for paying both your own share and the employer's share of Social Security and Medicare taxes.

Self-Employment Tax Rate (2024)

• 15.3% on net self-employment income (92.35% of net profit)
• Breakdown: 12.4% Social Security + 2.9% Medicare
• Social Security only applies up to the wage base ($168,600 in 2024)
• Additional 0.9% Medicare surtax on income over $200,000 (single)

Quarterly Estimated Tax Payments

Self-employed workers must pay estimated taxes quarterly. The 2024 due dates are April 15, June 17, September 16, and January 15, 2025. Underpaying by more than $1,000 results in an underpayment penalty. The safe harbor rule: pay at least 100% of last year's tax (110% if AGI exceeded $150,000).

Key Tax Deductions for 1099 Workers

• Half of self-employment tax (deductible from AGI)
• Self-employed health insurance premiums
• Home office deduction (exclusive-use space)
• Business equipment, software, and tools
• Mileage at IRS standard rate (67 cents/mile in 2024)
• Retirement contributions (SEP-IRA up to 25% of net earnings)