Freelance 1099 Tax Set-Aside
What to siphon off every invoice so April doesn't blow your runway. Federal + state + self-employment, accounting for expenses.
12% low / 18% middle / 24%+ high brackets.
0% TX/FL/WA · 6% avg · 10%+ CA top brackets.
15.3% standard (SS + Medicare). Cap at ~$168k SS portion.
% of this invoice covered by tracked business expenses.
$1,670
Take-home ≈ $3,330 · effective rate 33.4%
- Refined federal brackets with QBI deduction modeling.
- Self-employment tax cap at the annual Social Security wage base.
- Quarterly estimated tax schedule with safe-harbor calculations.
- Reality check: flag when set-aside % is too low for your bracket.
This estimate is directional while we calibrate against fresh benchmark data. The full math, range bands, and reality-check verdicts ship next.
Common questions
What percentage of my 1099 income should I save for taxes?▾
25–35% is the safe rule for most US freelancers: ~15.3% self-employment tax + federal income tax (10–24% effective at typical brackets) + state. High earners in CA/NY can hit 40%+.
Do I owe quarterly taxes?▾
Yes if you'll owe more than $1,000 in tax. Pay on April 15, June 15, September 15, and January 15. The IRS charges underpayment penalties if you wait until April.
What about the QBI deduction?▾
The 20% QBI deduction reduces taxable income for many service businesses below the threshold (~$383k joint / $191k single in 2024). It does not reduce self-employment tax.
Can I deduct business expenses before setting aside?▾
Yes — set aside based on net profit (revenue − legitimate business expenses), not gross. Home office, software, equipment, mileage all count if documented.