Know what to set aside before you spend it.
Self-employment tax, federal income tax, and your quarterly payment on 1099 income, estimated in your browser. Nothing is stored or sent anywhere.
Flat rate on net income.
Software, mileage, equipment.
Quarterly payment
$0.00
Effective rate
0.0%
Estimate only. Not tax advice. We are not tax professionals.
01 / The April problem
Why freelancers get crushed in April.
Employees never touch their tax money. It leaves the paycheck before the paycheck lands, so April is a formality. Freelancers get paid gross. Nothing is withheld, which means the balance in your account is not really yours: a quarter or more of it belongs to the IRS.
The April bill has three layers. A full year of income tax with nothing prepaid. Both halves of Social Security and Medicare, the 15.3% that employees split with their employer and never notice. And underpayment penalties, because the IRS expected its money quarterly, not in one lump sum.
The fix is unglamorous: know your number, move that share of every payment into a separate account the day it lands, and pay quarterly. The calculator above gives you the number.
02 / Do it once, automatically
The calculator is the manual way. The app just does it.
I Hate Invoicing tracks your 1099 totals per agency all year, flags the $600 threshold, and estimates your set-aside automatically. Free, no monthly fee.
Common questions
Do I really owe 15.3% before income tax?
Yes. Self-employment tax is 15.3% of 92.35% of your net self-employment income: 12.4% for Social Security up to the annual wage base, plus 2.9% for Medicare with no cap. It comes before, and on top of, federal income tax. Employees pay only half of it because their employer covers the rest through payroll. As a freelancer you are both sides, so you pay both halves.
What is the $600 1099-NEC threshold?
If a client pays you $600 or more in a calendar year, they are generally required to file a 1099-NEC reporting those payments to the IRS. Below $600 no form is required, but the income is still taxable. The threshold is about the paperwork, not about whether you owe.
What if an agency doesn't send a 1099?
You still owe tax on the income. The 1099-NEC is the client's reporting duty, not proof of what you earned. Track what every client actually paid you and report those totals, whether the forms show up or not.
Are expenses deductible before SECA?
Yes. Self-employment tax is calculated on net profit, not gross receipts. Ordinary business expenses like software, mileage, equipment, and insurance reduce the income the 15.3% applies to. That is why expense tracking pays twice: once against income tax and once against SECA.
When are quarterly payments due?
For a calendar-year filer, estimated payments are due April 15, June 15, September 15, and January 15 of the following year. Each one covers roughly a quarter of your expected annual bill. Skipping them and settling up in April usually adds an underpayment penalty.
How much should I set aside from each payment?
For a mid-income solo filer, 25% to 30% of each payment covers most situations. Your real number depends on income, filing status, state, and expenses, which is exactly what the calculator above estimates.
Estimate only. Not tax advice. We are not tax professionals.