Gross Revenue
$100,000
Total Tax
$24,602
Net Income
$60,398
What is a 1099-NEC?
Form 1099-NEC (Nonemployee Compensation) is used by businesses to report payments of $600 or more to independent contractors. As a 1099 worker, you are considered self-employed and must pay both the employee and employer portions of Social Security and Medicare taxes (self-employment tax).
How is 1099 income taxed?
1099 income is subject to self-employment tax (15.3%) on 92.35% of net earnings, plus federal income tax and state income tax. Unlike W-2 employees, 1099 workers must pay both halves of FICA. However, you can deduct business expenses and half of SE tax from your AGI.
Do I need to pay quarterly estimated taxes?
Yes, if you expect to owe $1,000 or more in taxes for the year, you should make quarterly estimated tax payments using Form 1040-ES. Due dates are April 15, June 16, September 15, and January 15 of the following year. Failing to pay may result in underpayment penalties.
What expenses can I deduct as a 1099 contractor?
Common deductible expenses include home office costs, equipment and supplies, software subscriptions, professional development, health insurance premiums, vehicle expenses for business use, travel expenses, and professional services (accounting, legal). All expenses must be ordinary and necessary for your business.
IRS-Aligned: This calculator uses 2025 IRS tax rates and brackets. Results are estimates -- consult a tax professional for your specific situation.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- IRS Form 1099-NEC — Nonemployee Compensation
- IRS Publication 334 — Tax Guide for Small Business
- IRS Schedule SE — Self-Employment Tax Instructions
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.