Independent Contractor vs Employee Tax Liability Calculator
Compare your total federal tax liability as an independent contractor (1099) versus a W-2 employee. See the impact of self-employment tax, the QBI deduction, and employer-paid FICA on your bottom line.
Formulas Used
Independent Contractor:
- SE Tax Base = Net SE Income × 0.9235 (IRS statutory reduction)
- QBI Deduction = Net SE Income × 20% (IRC §199A)
W-2 Employee:
2024 Federal Tax Brackets (Single / MFJ / HOH): 10%, 12%, 22%, 24%, 32%, 35%, 37% — applied progressively per IRS Publication 505.