Estimate quarterly taxes and understand your self-employment obligations
This tool is essential for anyone earning self-employment income from a side hustle. Many people are shocked when they realize they owe taxes on their side income—and that they're supposed to pay quarterly. This calculator helps you estimate your tax obligations, set aside the right amount, and avoid surprises at tax time.
Critical Disclaimer: This tool provides educational estimates only and is NOT tax, legal, or financial advice. Tax laws are complex and vary by location. Always consult with a qualified tax professional or CPA for personalized guidance.
The Tax & Self-Employment Snapshot will be embedded here. Users will input their side hustle income, expenses, and other details to estimate their tax obligations.
Enter your side hustle income: Input your gross revenue (before expenses) for the quarter or year.
Deduct business expenses: Include legitimate business expenses like supplies, software, mileage, home office, and professional services.
Add your W-2 income: If you have a day job, enter your annual salary to calculate your total tax bracket.
Select your filing status: Single, married filing jointly, head of household, etc.
Get your tax estimate: See your estimated self-employment tax, income tax, quarterly payment amounts, and total annual tax obligation.
Meet Sam L. – Freelance photographer with a day job
Sam's inputs:
Sam's tax estimate:
Quarterly payment recommendation: $1,388 per quarter
Percentage to set aside: 41% of net side hustle income
Reality check: Sam needs to set aside about $1,388 every quarter to avoid a big tax bill. That's 41% of their net side income—much higher than many people expect.
Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare). When you have a W-2 job, your employer pays half of this. When you're self-employed, you pay both halves. This is in addition to regular income tax.
If you expect to owe $1,000 or more in taxes from your side hustle, the IRS requires quarterly estimated tax payments. If you don't pay quarterly, you may face penalties and interest. Quarterly deadlines are April 15, June 15, September 15, and January 15.
Common deductions include: supplies and materials, software and subscriptions, mileage or vehicle expenses, home office (if you have a dedicated space), professional services, advertising and marketing, and education related to your business. Keep detailed records and receipts.
A safe rule of thumb is 25-30% of your net side hustle income if you're in a lower tax bracket, or 30-40% if you're in a higher bracket. This tool gives you a more precise estimate based on your specific situation.
If your side hustle is more of a hobby and you're not making a profit, you may not owe self-employment tax. However, the IRS has specific rules about hobby vs. business. If you're actively trying to make a profit, it's generally considered a business.
It depends on your income level and business structure. An S-Corp can save on self-employment taxes once you're earning $60,000+ annually, but it adds complexity and costs. Consult with a CPA to determine if it makes sense for your situation.
Now that you understand your tax obligations, make sure you're pricing your services to cover them.
Total revenue from your side hustle
W-2 income, investments, etc.
Software, supplies, advertising, etc.
Simplified method: $5/sq ft up to 300 sq ft
Mileage or actual expenses for business use
Computers, cameras, tools, etc.
Self-employed health insurance deduction
SEP IRA, Solo 401(k), etc.
Professional fees, education, etc.