1099 Take-Home Calculator
Remote AI work is almost always 1099 contract, so nothing is withheld and your hourly rate is not what lands in your account. You pay both halves of Social Security and Medicare yourself. Put in a rate to see the real number.
What this is estimating
- Self-employment tax is 15.3 percent on 92.35 percent of your net earnings. That is both halves of Social Security and Medicare, which an employer would normally split with you. The Social Security portion stops at the annual wage base, so above that only the 2.9 percent Medicare part continues.
- Federal income tax uses the standard deduction and the ordinary brackets, after deducting half of your self-employment tax.
- State income tax uses a single flat rate per state as a rough guide. States with graduated brackets will differ.
Frequently Asked Questions
Is AI training work 1099 or W2?
Almost all AI training and evaluation work is 1099 independent contract work. No tax is withheld from your payments, so self-employment tax and quarterly estimated payments are your responsibility.
Why is my take-home lower than my hourly rate suggests?
Because nothing is withheld and you pay both halves of Social Security and Medicare. A 60 dollar an hour contract rate is not the same as a 60 dollar an hour salaried job, and there are no employer benefits on top.
Do I need to pay quarterly taxes?
Generally yes, if you expect to owe 1000 dollars or more for the year. Most contractors set aside a share of every payment and pay estimated tax four times a year to avoid an underpayment penalty.
What can I deduct?
Ordinary and necessary business expenses such as a portion of your internet, a home office if it qualifies, and equipment used for the work. This calculator does not model deductions, so your real taxable income may be lower.
This is an estimate, not tax advice. It uses 2025 federal figures, ignores deductions, credits, dependants and local taxes, and treats state tax as a flat rate. Talk to a tax professional before making decisions.