Home › Money guides › 1099 NEC

1099 NEC

When you get a 1099-NEC, the new $2,000 threshold, how the income is taxed on Schedule C, and a calculator for self-employment and income tax.

Updated November 4, 2026. Free, no sign-up; everything runs in your browser and nothing you type is stored.

1099 NEC tax calculator

1099-NEC income ($)Business expenses ($)Income tax rate (%)Payment year

Estimated federal tax

–

–Self-employment tax

–Income tax (after half-SE and 20% QBI)

–Reporting threshold

1099 NEC: the new $2,000 threshold

Businesses file Form 1099-NEC for nonemployee compensation paid to contractors. For payments made in 2025 the threshold was $600; for payments made after December 31, 2025 the base threshold is $2,000 (IRS Rev. Proc. 2025-32), so 2026 payments under $2,000 generally won't get a 1099-NEC. All of your self-employment income is still taxable, with or without a form.

How 1099-NEC income is taxed

Report it on Schedule C. If net earnings are $400 or more you owe self-employment tax: 15.3% on 92.35% of net profit (12.4% Social Security up to $184,500, plus 2.9% Medicare). Half of the SE tax is deductible, and many contractors also get the 20% qualified business income deduction. If you didn't give the payer your TIN, it must withhold 24% backup withholding (Box 4); see the blank W9 form guide.

Pay during the year with quarterly estimated taxes: 1099 estimated tax calculator.

Common questions

What is the 1099-NEC threshold for 2026?

$2,000 for payments made after December 31, 2025 ($600 for 2025 payments).

Do I pay tax on 1099 income under $2,000?

Yes, all self-employment income is taxable even without a form.

What tax do I owe on 1099-NEC income?

Income tax plus 15.3% self-employment tax on 92.35% of net profit if it's $400 or more.

Sources

More paycheck and tax calculators: 1099 K Form · 1099 SA · 1099G

General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.