This is the era of the 1099 Tax. The gig economy is on the rise and the number of individuals working as 1099 contractors is also on the rise. However, being a 1099 contractor isn't always easy. Filing taxes is particularly perplexing. Do you consider yourself to be self-employed? Or are you an employee? Should you pay your taxes every quarter? If so, how have you planned it? Don't worry if you're feeling overwhelmed; you're not alone. 

Check out these frequently asked questions on 1099 tax calculator. 

Is there a difference between a 1099 contractor and a self-employed person? 

You are self-employed if you work as an independent contractor. This means that the Self-Employment Tax applies to your earnings. To check 1099 tax calculator, you'll need to figure out how to pay your taxes. You are normally responsible for projected quarterly tax payments and a yearly return as a self-employed individual. Your adjusted gross income is subject to federal and state taxes (where applicable). As a result, the more tax deductions you can uncover, the more money you'll save. 

Filing a yearly tax return entails the following steps:  

• You'll need a Schedule C form to file your annual taxes. Calculate the estimated amount of Social Security and Medicare taxes you should have paid throughout the year using the income calculated on this form. To record your Social Security and Medicare taxes, you'll use Form 1040 or Form 1040 SR. 
• Quarterly tax returns: To begin, figure out your year's adjusted gross revenue from self-employment. (The more deductions you find, the lower your tax bill!) To figure up your estimated tax payments, use the IRS's Form 1040-ES as a worksheet. 

What will my tax burden be? 

The amount you pay will be determined by several factors, including your income and the number of tax write-offs you find. On the contrary, Independent contractors are normally liable for paying Self-Employment Tax and income tax. With this in mind, it's a good idea to set aside between 25–30% of your self-employed income for taxes. (Check out Tax Vault if you want to automate this!) Remember, the more deductions you locate, the lower your tax bill. 

What are my options for lowering my taxes with 1099 tax calculator? 

Using a mileage and cost tracker is the simplest approach to reducing your payments. You should be able to locate thousands of dollars in tax deductions by recording your job travel and expenses. More money stays in your pocket when you find more tax deductions. 

Sam, for example, utilizes Flyfin’s 1099 tax calculator to automatically track his job travel and expenses. He exports this data and writes everything off at tax time. He usually finds $6,500 in deductions each year. Remember that the more deductions you take, the smaller your taxable income will be, and the less you'll owe the IRS/the larger your refund will be. 

Do I have to pay taxes quarterly? If yes, can I make quarterly tax payments? 

Here's how to figure up how much you owe each quarter: 

1. For the year, calculate your adjusted gross revenue from self-employment. 

2. Calculate your estimated taxes using IRS Form 1040-ES as a worksheet. 

You need to pay quarterly taxes if any of the following apply to you during the year: 

- You anticipate owing $1,000 or more in taxes. 

- Your self-employed/1099 income was $400 or more. 

The yearly return is due on April 15th, but quarterly tax payments are due every three months. Ensure that you pay your estimated taxes on time. Each year, the four projected tax payments are due on April 15th, June, September, and January. The filing deadline is delayed to the next business day if that date falls on a weekend or federal holiday. You can be penalized if you do not pay on time. 

Key Takeaways from Understanding 1099 Tax Calculator  

You are self-employed if you work as a 1099 contractor. 

• You're usually responsible for quarterly and annual taxes as a 1099 contractor. 
• Using an app like FlyFin to track your miles and expenses is the simplest method to reduce your taxes. 

Meet the world's most popular tax calculator- Flyfin software. You can automatically calculate your business expenses with it, thus adding thousands of dollars in deductions. Download your mileage and spending records while preparing your taxes. Then, either pass them over to your accountant or import them into your tax program immediately. Money was saved!