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Self-Employment Tax & Schedule C (1099 vs W2) Calculator

Calculate IRS Self-Employment Tax (15.3% Social Security & Medicare), the above-the-line 50% SE deduction, and the 20% Qualified Business Income (QBI Section 199A) deduction for 1099 freelancers.

Software, hardware, home office, travel, contractor fees

Calculation & Generation Results

Total Self-Employment Tax (SECA): $13,710 12.4% Social Security + 2.9% Medicare
Net Schedule C Business Profit: $97,000
Section 199A QBI Tax Deduction (20%): $18,029 (Lowers federal income tax base directly)
Half of SE Tax Deductible on Form 1040: -$6,855

About This Tool

Calculate IRS Self-Employment Tax (15.3% Social Security & Medicare), the above-the-line 50% SE deduction, and the 20% Qualified Business Income (QBI Section 199A) deduction for 1099 freelancers.

Frequently Asked Questions

What is the Self-Employment Tax rate in the US?

The self-employment tax rate is 15.3%, consisting of 12.4% for Social Security (on earnings up to the annual statutory wage cap of $168,600 in 2024 / $176,100 in 2025) and 2.9% for Medicare with no wage ceiling.

Why is SE tax only calculated on 92.35% of net profit?

The IRS allows self-employed individuals to multiply net business earnings by 92.35% (100% minus 7.65%) to emulate the tax treatment of W-2 employers who pay the employer half of FICA taxes.

What is the 20% Qualified Business Income (QBI) Section 199A deduction?

Established under the Tax Cuts and Jobs Act, eligible sole proprietors, LLCs, and S-corporations can deduct up to 20% of their net qualified business income from their taxable income before federal income tax brackets are applied.

Can you deduct half of your self-employment tax?

Yes. IRS Form 1040 Schedule 1 allows an 'above-the-line' deduction for exactly 50% of the calculated self-employment tax, directly lowering your Adjusted Gross Income (AGI).