Question 1

How much should a 1099 independent contractor set aside for taxes in 2026?

Accepted Answer

Most 1099 freelancers and independent contractors should set aside 25% to 30% of their net Schedule C profit to cover the 15.3% Federal Self-Employment (SE) tax plus Federal and State income taxes.

Question 2

How is the 15.3% self-employment tax calculated?

Accepted Answer

The IRS applies the 15.3% self-employment tax rate (12.4% Social Security up to the annual wage base plus 2.9% Medicare) to 92.35% of your net Schedule C business profit. You can also deduct 50% of your SE tax from your Adjusted Gross Income (AGI).

Question 3

When are 2026 IRS quarterly estimated tax payments due?

Accepted Answer

IRS Form 1040-ES quarterly estimated tax deadlines are April 15 (Q1), June 15 (Q2), September 15 (Q3), and January 15 of the following year (Q4).

Virginia (VA) 1099 Self-Employment & Quarterly Tax Calculator