Everything you need to know about 1099 taxes: deductions, quarterly payments, federal and state obligations, and tips to save money legally.
Freelancers, independent contractors, and gig workers who earn income outside of traditional employment usually receive a 1099 form instead of a W-2. This form reports your income to the IRS, but you are responsible for calculating and paying your own taxes.
1099 workers are subject to several taxes:
Legally deductible expenses reduce your taxable income. Common deductions include:
If you expect to owe $1,000 or more in taxes, you must pay quarterly estimated taxes to the IRS to avoid penalties. Use our Quarterly Tax Calculator to estimate payments.
Our 1099 Tax Calculator simplifies the process: input your income, business expenses, and state to get a detailed tax estimate. You can also print your estimate in a professional receipt format for your records.
Estimate federal and state taxes based on your 1099 income quickly and accurately.
Plan and calculate quarterly tax payments to stay compliant and avoid penalties.
Maximize deductible expenses to reduce taxable income as a freelancer or independent contractor.