Freelance and 1099 income carries both halves of Social Security and Medicare. Here's the real tax bill — and what to send the IRS each quarter.
Revenue minus business expenses (Schedule C line 31).
Most sole proprietors under the income thresholds qualify for the qualified business income deduction.
This self-employment tax calculator estimates the full tax bill on freelance and 1099 income — which carries both the employee and employer halves of Social Security and Medicare — plus federal income tax, then breaks it into quarterly estimated payments.
It applies 15.3% (12.4% Social Security up to the wage cap plus 2.9% Medicare) to 92.35% of your net self-employment earnings, on top of regular income tax.
The combined rate is 15.3%, because the self-employed pay both the employee and employer shares of payroll taxes that a W-2 worker splits with an employer.
Estimated payments are generally due in April, June, September, and the following January. Underpaying can trigger IRS penalties.