Estimate quarterly federal payments, self-employment tax, state taxes, and the SEP-IRA contribution that lowers all of it. April, June, September, January.
Your 1099 income
$140K
Mileage, supplies, CME, malpractice, home office, etc.
$8K
From a primary RN/NP job. Affects total tax bracket.
$0
SEP-IRA limit: 25% of net SE earnings (~$70K for 2026). Solo 401k can go higher.
$0
Your quarterly tax payments
Total Tax Burden
$0
Combined federal + self-employment + state on your 1099 income.
Q1
Due April 15
$0
Federal + SE + state
Q2
Due June 15
$0
Federal + SE + state
Q3
Due September 15
$0
Federal + SE + state
Q4
Due January 15
$0
Federal + SE + state
Effective tax rate
0%
% of gross 1099
Net after tax
$0
Take-home from 1099
Net SE income (after expenses)
$0
Self-employment tax (15.3% on 92.35%)
$0
SE tax deduction (half of SE tax)
$0
Federal income tax
$0
State income tax
$0
Total tax burden
$0
Suggested SEP-IRA contribution
$0
A SEP-IRA contribution lowers your taxable income dollar-for-dollar.
Estimates use 2026 federal brackets, the standard deduction by filing status, and a flat state-rate approximation. Actual tax depends on additional adjustments, credits, deductions, and exact state code. Self-employment tax is 12.4% Social Security on the first $176,100 of net SE earnings plus 2.9% Medicare with no cap. This tool is informational, not tax advice. Consult a CPA before filing.
Why 1099 NPs underpay (and get penalty letters)
W-2 employees never see how much tax leaves their paycheck. The employer withholds federal, state, and FICA automatically. 1099 contractors get the gross amount and have to send the IRS quarterly checks for the full burden. Miss a quarter, and the IRS adds underpayment penalties calculated on the missed amount.
The shock for new 1099 NPs is self-employment tax. As a W-2 employee, you and your employer split FICA (7.65% each). As a 1099 contractor, you pay both halves: 15.3% on top of regular income tax. On $140K of net 1099 income, that is roughly $19,800 in SE tax alone, before federal income tax kicks in.
How quarterly payments work
Federal estimated taxes are due four times per year:
Q1: April 15 (covering Jan-Mar)
Q2: June 15 (covering Apr-May)
Q3: September 15 (covering Jun-Aug)
Q4: January 15 of next year (covering Sep-Dec)
Each payment should be roughly 25% of your projected annual tax liability. Pay through IRS Direct Pay (free) or EFTPS (also free). Keep records.
The SE tax deduction
Half of your self-employment tax is deductible against your federal income tax. We bake this in automatically. It reduces your federal taxable income (not your SE tax itself), so it softens the blow but does not eliminate it.
SEP-IRA and Solo 401k for 1099 NPs
SEP-IRA lets you contribute up to ~25% of net self-employment earnings, up to $70,000 (2026 limit). Easiest to set up. Contributions reduce your federal taxable income dollar-for-dollar.
Solo 401k allows the same employer-side ~25% PLUS a $23,500 employee deferral (2026), giving higher total contribution room. Slightly more paperwork but better for high-income 1099 NPs.
Both are usable even if you also have a W-2 job with a 401k. The plans are tied to your self-employment income, not your day job.
Frequently asked questions
Do I need to pay state estimated taxes too?
If your state has income tax, yes. Most states mirror the IRS quarterly schedule. Some require their own forms. Skip this and you owe the state penalty + interest.
What if I had no 1099 income last year?
Safe harbor: you owe no penalty if you pay 100% of last year's tax liability (110% if AGI was over $150K). For first-year 1099 NPs with no prior tax history, you must estimate the current year and pay quarterly to avoid penalty.
Can I just pay it all at the end of the year?
Technically yes, but you will owe an underpayment penalty calculated quarterly on missed amounts. The penalty is currently ~8% annualized. Better to pay each quarter or have a W-2 job withhold extra to cover the 1099 side.
What expenses can I deduct?
Anything ordinary and necessary for your 1099 NP work: malpractice insurance, CME courses, licensure fees, scrubs/PPE, mileage to clinical sites (not commuting), home office (if exclusively used), software, professional dues. Keep receipts. Mileage logs in Stride or MileIQ.
Should I form an LLC or S-corp?
An LLC alone provides no tax benefit (it is a pass-through). An S-corp election can reduce SE tax once your net 1099 income exceeds ~$80-100K, by paying yourself a "reasonable salary" and taking the rest as distributions (no SE tax on distributions). Worth a CPA conversation once you cross that threshold.