Enter your income to compare your exact tax bill as a contractor vs employee — SE tax, federal, state, and real take-home pay side by side.
Your employer withholds taxes and pays half your FICA (7.65%). You never see the employer half — but on a $75,000 salary it costs them ~$5,750 extra.
You pay both halves of FICA as SE tax (15.3%), but can deduct business expenses, half of SE tax, and up to 20% QBI deduction — often closing the gap significantly.
| Type | W-2 Employee | 1099 Contractor |
|---|---|---|
| FICA / SE tax | 7.65% (employee) + 7.65% (employer) | 15.3% on 92.35% of net |
| SS wage base | $176,100 | $176,100 |
| Standard deduction (single) | $15,000 | $15,000 |
| Standard deduction (MFJ) | $30,000 | $30,000 |
| Half SE tax deduction | N/A | Reduces AGI dollar-for-dollar |
| QBI deduction | N/A | Up to 20% of qualified income |
| Business expense deductions | Very limited | Full Schedule C write-offs |
No sign-up required. No hidden fees. Ever.
I have been 1099 for 4 years and never fully understood what I could deduct until I found this site. The home office, internet, and software deductions alone saved me over $3,800 on my 2025 return. Way better than anything my accountant explained.
Switched from W-2 to 1099 last year and had no idea what I was doing. This site taught me about QBI deduction, SE tax deduction, and health insurance write-off. Filed my first Schedule C with confidence. No paywall, no upsell, just real information.
Good reference for quarterly estimated taxes. The state-by-state breakdown is useful — Florida has no state income tax which this confirmed. Bookmarked for Q3.