Whether you're a designer, developer, writer, or consultant — get your 1099 tax estimate in 60 seconds.
Freelancers earning over $400 owe self-employment tax (15.3%) on net profit, plus federal and state income tax. Clients who pay you over $600 in a year send a 1099-NEC. Unlike employees, nothing is withheld — it's your job to pay quarterly.
The upside: freelancers have far more deductions available than W-2 employees. A home office + laptop + software can easily reduce taxable income by $10,000–$20,000.
| Deduction | 2025 Rate / Limit | Notes |
|---|---|---|
| Home office (simplified) | $5/sq ft, max $1,500 | Dedicated workspace — exclusive use required |
| Laptop, monitor, equipment | Full cost (Section 179) | Deduct 100% in year of purchase |
| Software subscriptions | Full cost | Figma, Adobe CC, GitHub, Notion, etc. |
| Phone bill (business portion) | % of annual bill | Typically 50–80% |
| Internet bill (business portion) | % of monthly bill | Proportional to work use |
| Professional development | Full cost | Courses, books, conferences |
| Health insurance premium | Full premium (if no employer plan) | Above-the-line deduction from AGI |
| SEP-IRA / Solo 401(k) | Up to $69,000 (2025) | 25% of net SE income, reduces AGI |
| ½ of SE tax | Automatic above-the-line | Included in calculator |
Most freelancers qualify for the Section 199A QBI deduction, which lets you deduct up to 20% of qualified business income. On $80k net income that's up to $16,000 off — before you even hit the standard deduction. Our calculator applies this automatically.
| Gross Revenue | After Deductions (~30%) | Set Aside (est.) |
|---|---|---|
| $50,000 | ~$35,000 | ~$8,750 (25%) |
| $80,000 | ~$56,000 | ~$16,800 (30%) |
| $120,000 | ~$84,000 | ~$29,400 (35%) |
| $200,000 | ~$140,000 | ~$56,000 (40%) |
This page is for informational purposes only. GigWorkerTax is not a licensed tax service. Consult a CPA for advice specific to your situation. Tax rules subject to change.