Do I pay self-employment tax on all revenue?

No. It is charged on net profit after business expenses, and only 92.35% of that profit is subject to the tax.

Can I have a W-2 job and 1099 income?

Yes. You pay FICA through the W-2 job and self-employment tax on the freelance profit, with the Social Security portion coordinated through the wage base.

What if I make a loss?

A business loss can reduce other income, subject to hobby-loss rules and basis limits. It also reduces self-employment tax to zero.

EarnAfterTax

How 1099 taxes work

Freelancers pay both halves of Social Security and Medicare, plus income tax, with no employer withholding. Here is how to calculate it and when to pay.

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IRS — Self-employment tax (Schedule SE)
IRS — Estimated taxes
IRS — Qualified business income deduction

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