2026 1099 Tax Calculator

How the 1099 tax calculator works

Subtract eligible expenses from gross revenue. Calculate self-employment tax from 92.35% of the remaining profit, coordinating your own W-2 Social Security wages with the $184,500 cap. Add the profit to ordinary household income and deduct half of regular SE tax. Then subtract your standard or custom deduction, any supported QBI deduction you select, and apply 2026 progressive federal brackets.

The total combines ordinary federal income tax, regular SE tax, and Additional Medicare Tax on wages and self-employment. Regular W-2 payroll taxes are excluded because they are collected through payroll. Use separate box 1, boxes 3 + 7, and box 5 totals: retirement deferrals and reported tips can make them different.

Worked example: $60,000 revenue and $10,000 expenses

A single filer with no other income has $50,000 profit and $7,064.78 SE tax. After deducting $3,532.39 for half of SE tax and the $16,100 standard deduction, taxable income before QBI is $30,367.61. Income tax is $3,396.11; total modeled tax before QBI and credits is $10,460.89, or 20.92% of profit.

If this is an eligible active business within the supported QBI scope, the taxable-income cap limits its QBI deduction to $6,073.52. Income tax falls to $2,667.29, and total modeled federal tax is $9,732.07, or 19.46% of profit. These examples use the same default inputs; QBI is an explicit choice.

How much should I set aside for 1099 taxes?

The reserve percentage divides the increase in modeled annual tax from this business by net profit. The comparison holds other income and the standard or custom deduction constant and includes the SE half-deduction and selected QBI treatment. It is a starting point for saving from profit, not a universal percentage of revenue.

The annual balance subtracts entered withholding and estimated payments from tax on the entire return. An overpayment is before credits. This tool does not calculate installment dates, prior-year safe harbors, uneven-income annualization or underpayment penalties. For actual payment requirements, use IRS Publication 505 and Form 1040-ES.

When the simplified QBI option applies

Select eligible only for one domestic Schedule C business in which you materially participate, with no QBI loss carryforwards, other businesses, REIT/PTP income, cooperative payments or deducted qualified tips. Self-employed health insurance and retirement-plan deductions are not modeled. Taxable income before QBI must be no more than $201,750 for single/head of household, $201,775 separate, or $403,500 joint.

Within that scope, QBI is profit less the deductible half of SE tax. The ordinary deduction is the lesser of 20% of QBI or 20% of taxable income before QBI; capital gains are excluded from all inputs. For 2026, an eligible active business with at least $1,000 QBI receives a minimum $400 deduction. Taxable income cannot fall below zero. Above the supported threshold, the calculator stops if QBI is selected; choose Before QBI for a clearly labeled estimate or complete Form 8995-A.

Scope and exclusions

This estimates ordinary federal income tax before credits and one taxpayer’s regular Schedule C SE tax. It excludes state taxes, business losses, spouse self-employment, capital gains/qualified dividends, taxable Social Security benefits, AMT, net investment income tax, other special taxes, and additional self-employed adjustments. Expenses above revenue stop the estimate rather than silently discard a loss. Custom deduction totals replace the base standard deduction and must be eligible; age/blindness additions, senior deductions and filing-status restrictions need separate eligibility review.

Use your correct legal filing status. Separate returns in community-property situations are outside scope. Optional SE methods, clergy/church employee rules, railroad wages and international exemptions are unsupported. Enter projected full-year income/payments. Blank fields mean zero; estimates retain cents rather than whole-dollar return rounding.

2026 rules and sources

• IRS Topic 554: self-employment tax and Schedule SE instructions describe the regular method and deductible half.
• IRS Publication 15 (2026) gives the $184,500 Social Security wage base.
• Form 8959 instructions provide the 0.9% Additional Medicare Tax and wage coordination. These thresholds are not indexed.

• IRS Revenue Procedure 2025-32, sections 4.01, 4.14, 4.26 and 2.12: brackets, deductions, QBI thresholds and minimum deduction.
• IRS QBI deduction overview: 20% limits, SE adjustments and 2026 active-business minimum. Form 8995 provides the simplified worksheet.

Reviewed October 6, 2026. Method guidance currently references 2025 SE/8959 instructions with verified 2026 indexed amounts. All assumptions and sources.