Freelance tax calculator to estimate Self-Employment tax, federal income tax and total tax burden. Includes QBI deduction and business expense estimates. | No Signup ยท Data Never Leaves Your Device
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๐ How to Use
Freelance tax calculator to estimate Self-Employment tax, federal income tax and total tax burden. Includes QBI deduction and business expense estimates.
๐ฏ Use Cases
Quarterly Tax Planning:Estimate annual freelance income and tax burden early in the year to set quarterly payment amounts, avoiding large year-end bills and IRS penalties.
Hourly Rate Decisions๏ผCalculate actual take-home pay after SE tax and income tax, comparing against W2 pre-tax equivalents to ensure freelance pricing is reasonable and profitable.
S-Corp Conversion Assessment๏ผWhen net freelance income exceeds $50,000-70,000, evaluate whether converting to S-Corp saves more in taxes โ S-Corp can avoid some SE tax.
โ FAQ
What is Self-Employment (SE) Tax?
SE tax is the Social Security and Medicare tax freelancers pay, equivalent to what W2 employees and their employers pay combined. The 2025 rate is 15.3% (12.4% Social Security + 2.9% Medicare). W2 employees pay 7.65% with employer covering the other half; freelancers pay the full 15.3% themselves. Social Security has an income cap ($168,600), above which only Medicare tax applies.
How do freelancers calculate quarterly estimated taxes?
IRS requires quarterly estimated payments (April 15, June 15, September 15, January 15). Generally pay 100% of last year's tax or 90% of current year's estimate. Missing payments incurs penalties. This calculator estimates annual tax burden โ divide by 4 for quarterly payments.
What is the QBI deduction?
QBI (Qualified Business Income) deduction allows eligible self-employed individuals to deduct 20% of qualified business income from taxable income. Example: $80,000 freelance net income โ $16,000 QBI deduction โ $64,000 taxable. This is a major benefit from the 2018 tax reform.
Is SE tax deductible?
Yes! Half of your SE tax (7.65%) is deductible as an above-the-line adjustment to AGI, reducing federal income tax. This calculator automatically includes this deduction. Example: $11,000 SE tax โ $5,500 deduction against income tax.
What business expenses can I deduct?
Home office (by square footage proportion), computer/software/equipment, internet/phone, professional services (lawyer/CPA), travel, continuing education, health insurance premiums (self-employed), retirement plan contributions (SEP IRA/Solo 401k). Keep receipts โ be reasonable but not aggressive.