IncomeChecker.com

1099 Income Calculator

Work out what your 1099 income comes to. Enter your 1099 earnings and business expenses to see net profit, the estimated self-employment tax, what is left before income tax, and the monthly figure a lender may use.

$
$
Monthly net profit
$6,250.00
What a lender usually counts
Annual net profit
$75,000
Self-employment tax
$10,597
Left before income tax
$64,403

The formulas

  • Net profit = 1099 income − business expenses
  • Self-employment tax = net profit × 92.35% × (12.4% up to the Social Security wage base + 2.9% Medicare)
  • Monthly income for a lender = net profit ÷ 12

Example. With $90,000 of 1099 income and $15,000 of expenses, net profit is $75,000, or $6,250 a month. Self-employment tax is about $10,597, leaving about $64,403 before income tax.

Things to check

  • The Social Security part of the tax applies only up to the annual wage base, which is $184,500 for 2026. Medicare applies to all net earnings.
  • This shows self-employment tax only. It does not include federal or state income tax, and it does not apply the deduction for half of the self-employment tax.
  • Lenders usually count net profit from your tax return, not gross 1099 income. A year with heavy write-offs can look much smaller to a lender than it felt in cash.
  • It is an estimate, not tax advice. A tax professional can work out the exact figure.

Frequently asked questions

How much tax do I pay on 1099 income?

You owe self-employment tax of about 15.3% on 92.35% of net profit, up to the Social Security wage base, plus income tax on your profit. Part of the self-employment tax is deductible.

What income do lenders use for a 1099 worker?

Usually net profit from your tax returns, averaged over two years. Gross 1099 income is not used because expenses come out first.

Are 1099 and self-employment income the same thing?

They are closely related. A 1099 contractor is treated as self-employed for tax and for most lending rules.

More free lending tools

Calculators give estimates from the numbers you enter. They are not tax, legal, or accounting advice.