How do I calculate self-employment tax on my 2024 1099 income as a single filer?

Thanks for explaining! So if I'm doing this right, I'd calculate 15.3% on $30,752.55 (which is $33,300 × 0.9235)? Also, do I need to make quarterly estimated payments on this amount, or can I just pay it all when I file?

That's exactly right! 15.3% on $30,752.55 would give you your self-employment tax amount. For quarterly estimated payments, the general rule is that if you expect to owe $1,000 or more in taxes when you file your return, you should make quarterly payments to avoid an underpayment penalty. With your income level, you'd likely need to make these payments. You'd estimate your total tax liability (both income tax and SE tax) and divide by 4 for each quarterly payment. The IRS Form 1040-ES can help you calculate this amount properly.

Does it actually tell you which expenses qualify for deductions? I've been tracking everything but I'm not sure what's actually deductible for my photography side gig.

Is this another one of those paid services that costs more than it saves? Last year I tried something similar and wasted $120 for basically the same info I could get from a Google search.

It definitely helps identify qualified business expenses. For photography specifically, it categorizes common deductions like equipment, software subscriptions, studio space, travel to shoots, and even portions of your cell phone bill if used for business. It asks about your specific situation and tailors the recommendations. Regarding cost versus value, I was skeptical too, but unlike generic advice from Google, it analyzes your specific numbers and situations. For me, it found over $3,200 in deductions I would have missed, plus saved me from incorrectly calculating my SE tax which would have resulted in a penalty. The peace of mind alone was worth it.

How does this actually work? Does it just call the IRS for you? I don't understand how this gets you through faster than just calling yourself.

This sounds like complete BS honestly. The IRS phone system is the same for everyone. How could some service possibly get you through faster than anyone else? I'm calling scam on this one.

It doesn't call the IRS for you - it monitors the IRS phone lines and when it detects an opening, it calls you and connects you directly to that open line, essentially skipping the hold queue. So you're still talking directly to the IRS yourself, but without the hours of waiting on hold. The system basically does what you'd do if you had unlimited phones and time - calling repeatedly until getting through, then connecting you when it finds an opening. I was skeptical too until I tried it. The IRS agent I spoke with even mentioned they've been hearing about the service from a lot of callers lately.

Thanks for mentioning this! Does the deduction for half the SE tax reduce the amount of SE tax I pay, or just my income tax? And do I need a separate form for that or is it part of the regular 1040?

The deduction for half of your SE tax doesn't reduce the SE tax itself, but it does reduce your income tax. It's considered an "adjustment to income" (sometimes called an "above-the-line deduction"), which means you get this benefit even if you take the standard deduction rather than itemizing. You don't need a separate form for this deduction. When you complete Schedule SE to calculate your self-employment tax, the form will automatically calculate the deduction amount. This amount then transfers to Schedule 1 of your Form 1040 as an adjustment to income. Tax software handles this transfer automatically, making it pretty seamless.

If your W-2 wages already hit the Social Security limit ($168,600 for 2024), you'd only pay the Medicare portion (2.9%) on your self-employment income. If your W-2 is below the limit, you pay the full SE tax on your net self-employment income, but only up to the point where your combined income hits that limit. Either way, you still calculate it on Schedule SE.