$20k profit, 22% marginal, $0 withholding
- SE tax ≈ $20k × 0.9235 × 15.3% ≈ $2,826
- Income tax ≈ $20k × 22% = $4,400
- Total ≈ $7,226; Quarterly ≈ $1,807
finance calculator
Side Hustle Estimated Payments
Estimate quarterly tax payments for side-hustle profit using SE tax + simple income tax minus withholding.
Results
- Self-employment tax
- $2,826
- Income tax (simple)
- $4,400
- Total estimated tax
- $7,226
- Quarterly payment (4x)
- $1,806
How to use this calculator
- Enter side-hustle net profit (income minus expenses).
- Enter withholding already paid (from W-2 or prior estimates).
- Enter a marginal tax rate (combined if you want simplicity).
- Review SE tax, income tax, total, and suggested quarterly payment.
Inputs explained
- Net profit
- Income minus expenses.
- Marginal rate
- Use combined federal/state if you want a one-line estimate; detailed brackets/credits not modeled.
- Withholding
- Tax already withheld (e.g., from W-2) to reduce what’s due in quarterlies.
How it works
SE tax = Net profit × 92.35% × 15.3%.
Income tax (simplified) = Net profit × marginal rate (enter combined federal/state if desired).
Total = SE tax + income tax. Quarterly = max(0, Total − withholding) ÷ 4.
Formula
SE tax = Net profit × 0.9235 × 15.3% Income tax = Net profit × Marginal rate Total = SE tax + Income tax Quarterly = max(0, Total − Withholding) ÷ 4
When to use it
- Planning quarterly estimated taxes for freelance/side income.
- Checking if existing withholding covers side-hustle taxes.
- Quick sanity check before a full tax projection.
Tips & cautions
- This is a simplified estimate; actual returns use brackets, QBI, credits, and phaseouts.
- Update withholding and profit throughout the year to keep estimates current.
- Pair with the safe harbor calculator to avoid underpayment penalties.
- No QBI, credits, deductions, AMT, additional Medicare surtax, or wage-base cap modeling.
- Uses a single marginal rate; not a bracketed calculation.
- Informational only; not a filing tool.
Worked examples
$30k profit, 25% marginal, $5k withholding
- SE tax ≈ $30k × 0.9235 × 15.3% ≈ $4,237
- Income tax ≈ $7,500
- Total ≈ $11,737; Net after withholding ≈ $6,737; Quarterly ≈ $1,684
Deep dive
Estimate quarterly tax payments for side-hustle income by combining self-employment tax with a simple income tax and subtracting withholding.
Use it to plan 1040-ES payments alongside safe harbor checks.
FAQs
- Does this include QBI or deductions?
- No. It’s a quick estimate. Deductions/credits can lower income tax; use full tax software for precision.
- Does it cap Social Security?
- No. It uses a flat 15.3% on 92.35% of profit. For full accuracy, cap SS at the wage base after W-2 wages.
- Is withholding applied automatically?
- Enter withholding yourself; the calculator subtracts it to show what might remain for quarterlies.
- Can this replace Form 1040-ES?
- No. It’s for planning only. Use IRS forms or tax software to file payments.
- How do safe harbor rules fit?
- Use this for a simple quarterly view; use the safe harbor calculator to check penalty protection thresholds.
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Side Hustle Tax Calculator
Estimate self-employment tax plus simple income tax on side-hustle profit, with quarterly payment guidance.
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Safe Harbor Tax Calculator
Estimate the minimum tax you need to pay to meet IRS safe harbor rules and avoid underpayment penalties.
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Estimated Quarterly Tax Calculator
Estimate annual tax and suggested quarterly payments using a simple tax rate and optional safe harbor percentage.
Informational estimate. Does not model brackets, QBI, credits, AMT, wage bases, or additional Medicare surtax. Consult a tax professional for accurate filings.