Before business expenses
Profit: $70,000
More options· Single
Per year, if you also have one
Per year, if you have no employer plan
Only matters at high incomes
Set aside for taxes
$16,219
23% of your $70,000 profit · about $4,055 a quarter
- Self-employment tax
- $9,891
- Income tax
- $6,328
- You keep$53,781
- Self-employment tax$9,891
- Federal income tax$4,452
- State & local$1,876
You keep $53,781 · Marginal rate 29.8% on your next dollar of profit
What this means
Self-employed, you pay both halves of Social Security and Medicare, the employee’s share and the employer’s. That’s why your tax is higher than an employee’s on the same pay.
No one withholds it for you, so move about $4,055 into a separate savings account each quarter and pay it by the IRS deadlines. Paying late adds a penalty.
Breakdown
| Per quarter | Per year | |
|---|---|---|
| 1099 income | $20,000.00 | $80,000.00 |
| Business expenses | -$2,500.00 | -$10,000.00 |
| Social Security (self-employment) | -$2,004.00 | -$8,015.98 |
| Medicare (self-employment) | -$468.68 | -$1,874.71 |
| Federal income tax | -$1,112.91 | -$4,451.65 |
| California income tax | -$469.09 | -$1,876.36 |
| You keep | $13,445.32 | $53,781.30 |
Deductions included: half of your self-employment tax ($4,945), the qualified business income deduction ($9,791).
Quarterly estimated payments (2026)
| Due | Federal | California |
|---|---|---|
| April 15, 2026 | $3,585.58 | $469.09 |
| June 15, 2026 | $3,585.58 | $469.09 |
| September 15, 2026 | $3,585.58 | $469.09 |
| January 15, 2027 | $3,585.58 | $469.09 |
Pay federal estimates to the IRS (for example with IRS Direct Pay) and state estimates to your state’s tax agency. Some states use different due dates.
Assumptions in this estimate
- Assumes the 1099 income is from a business you run yourself (you materially participate) and is your only business.
- Retirement contributions (SEP-IRA, solo 401(k)), other income such as interest or rent, and itemized deductions are not included.
- Quarterly payments split the year’s tax evenly. To avoid a penalty, pay at least 90% of this year’s tax or 100% of last year’s (110% if last year’s AGI was over $150,000) through estimates and withholding.
- City taxes on business profits (for example Philadelphia’s Net Profits Tax or Ohio city income taxes) are not included.