Certain types of income paid is reported by payers with a variation of 1099. Individuals or businesses who receive 1099 can use it to file a federal income tax return. 1099 tax calculator for the 2021 tax season and beyond can be found in the rest of this article.
If you’re self-employed or do freelancing gigs as a side hustle, you are most likely to be furnished with 1099, reporting the income earned. If you work for an employer, your salary will be reported using Form W2, not 1099.
For example, if you work full-time but take on freelance gigs as a side hustle, the payers will file 1099, reporting this income. If you’re a sole proprietor and that’s pretty much what you do to earn income, you won’t be sent a W2 since you don’t have an employer that’s paying you a salary.
1099 Self-Employment Tax Calculator
When a payer furnishes the recipient with 1099 to report the income, oftentimes, the federal income tax isn’t withheld. This isn’t the only tax that people who receive 1099 should worry about though. There is also the self-employment tax that is made up of Social Security and Medicare taxes.
This tax is also known as the FICA tax with a total rate of 15.3%. Calculate using Forms 1099 to see how much you owe in these taxes.
1099 Income Tax Calculator
The 1099 Tax Calculator will come in handy if you’re self-employed. Those who are expected to receive a few Forms 1099 such as INT or DIV, reporting investment income, don’t really need to use the calculator as the income shown on Forms 1099 can be added to the gross income.
However, if you have multiple Forms 1099, take full advantage of the 1099 calculator to figure out gross income. You can then gradually subtract the adjustments and deductions you can take on your federal income tax return. This will allow you to figure out your tax liability.
As long as you know your gross income, you can calculate tax liability using our tax calculator.