Enter your annual 1099 income and deductions to estimate your self-employment tax and quarterly payments. Updated for 2026 tax rates.
Set up a separate savings account and transfer $731 each month. This way you won't be caught off guard at tax time.
FreshBooks makes tracking expenses and estimating quarterly payments easy. File your 1099 taxes in minutes.
Try FreshBooks Free → FreeTaxUSA (50% off) →Self-employment tax is Social Security and Medicare taxes for people who work for themselves. The rate is 15.3% on your net self-employment income (12.4% Social Security + 2.9% Medicare). Regular employees split this with their employer, but as a 1099 worker you pay the full amount.
Common deductions include: mileage (67¢/mile in 2026), phone bills, internet, software subscriptions, equipment, office supplies, advertising, and professional services. Keep receipts and track mileage from day one.
Estimated tax payments are due four times a year: April 15, June 15, September 15, and January 15 of the following year. If you have a W-2 job, you can also increase your W-2 withholdings to cover your 1099 tax bill.
If you have both W-2 and 1099 income, you can either make quarterly estimated payments or increase the withholdings from your W-2 paycheck to cover the additional tax. The W-2 withholding method is often simpler.
1099-NEC (Nonemployee Compensation) is used for payments of $600 or more for services rendered. 1099-MISC is for rent, royalties, prizes, and other payments. Most freelancers receive 1099-NEC forms from their clients.