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Tax Impact Calculator

How much will your independent contractor earnings impact your taxes?

This tax calculator is designed to help you answer that question. To understand more about the process used to put this calculator together, you can read the explanation post about our 2021 Doordash Tax Calculator.

Results on this Tax Impact Calculator are not guaranteed.

There are a couple of things you need to know:

I am not a tax expert. While I've worked hard to research information so that I can put it together in a way that is helpful for you, I'm not a tax professional. Do not take anything in this or any other articles on this website as tax advice. If you need tax advice for your own personal situation, you should seek out a good tax professional.

This is not intended to be a thorough look at your income taxes. This is called a tax impact calculator. It is intended to help you understand how much your self employed income will impact your tax bill. It's meant to help you 1) get an estimate of your business profits, and 2) get a feel for how much those business profits will increase your tax bill.

This is not exact. The purpose is to help you ESTIMATE the tax impact. It does not take into account everything involved with your personal taxes. It does not look at credits, it doesn't get into specifics about adjustments or deductions.

This relies on the information you provide. While it focuses on your self-employed business, there are some questions related to personal taxes, especially to other income and to deductions and adjustments. These are to help identify what tax bracket your business profits would fall into. The accuracy of it will depend a lot on how accurate the information you plug into the calculator is. You will need to know the tax adjustments that might impact your taxes and what additional income will be taxable.

It probably has some flaws. I'm not a programmer. I used a tool that probably wasn't designed to try to calculate all the things that need to be calculated. I've tried testing results as many ways as possible but something may still be off in some situations. If you discover any major flaws in how it works, please let me know in the comments.

One last warning:

Try to avoid hitting the enter button. It will try to submit the form and you may have to start over. You can hit the tab button to move to the next field or use your mouse.

Tax Impact Calculator

Income Calculator

Tax Impact Calculator: Getting Started

What is your filing status?

Step 1: Estimating Your Business Profit

We need to figure out your business profit. Profit is the taxable part of your self-employment income.

We will start with how much money you received for your business. This is any of the money you were paid by Doordash, Uber Eats, Uber, Lyft, Grubhub, Instacart or any other gig economy apps.

Add up all of your 1099's. Put that total in the box below. Note: if you earned less than $600 on some platforms you may not have received a 1099. The IRS will tell you that you still have to report that income. If you choose to do so, add that money to the total of your 1099 forms.

Now let's figure out your deductible business expenses

First we'll start with your miles. This calculator is going to assume you can claim more for the standard mileage rate than the actual expense method

Now we need you to add up other business expenses.

Some ideas might include:

  • Hot bags
  • The business percent of your cell phone and service
  • Cell phone holders
  • Business percent of your car loan interest

You can read here for more ideas on non-car business expenses or these additional car expenses that can be claimed on top of mileage.

This completes step 1.Check the box below to move on to Step 2

Self-Employment Tax Calculator

Step 2: Calculate your Self Employment Tax Bill

We'll do all the work for you here. Based on the information you provided, this is what your self employment tax bill looks like:

The self-employment tax rate is 15.3%. Your self employment tax is not impacted by other deductions later in this form.

Based on your profit, this is the portion of your tax bill that you must pay to cover Social Security and Medicare. You can learn more about Self-Employment tax here.

This completes step 2. Check the box below to move on to Step 3.

Section 3

Step 3: Adding Other Income

Here you'll enter any other income that you have earned. Include W2 income, taxable interest and investment income, social security or pension income or any other taxable income. Not sure what other income you might have? You can check previous year's 1040 forms, lines 1 through 8, to see what kind of income you've had in past.

This total reflects your self-employment profit plus any wages and other income that you entered.
This completes step 3. Check the Box Below to Move on to Step 4.

Section 4

Step 4: Subtract deductions and adjustments

Now we'll add up any of the tax deductions and adjustments that you can claim to reduce your taxable income.

Do you plan to itemize deductions instead of taking the standard deduction?
Additional income adjustments. There are several income adjustments that you may claim that are not part of the itemized deduction part of your return. Examples include:
  • Health Savings Account contributions
  • Some retirement plans
  • Qualifed self-employment health insurance plans
  • Student loan deductions

To get an idea of what kind of deductions you have taken in the past, you can look at previous tax returns, Schedule 1, Part II.

You may want to consult your tax professional to find out what deductions you can claim.

Note, do not add self-employment tax deductions or Qualified Business Income deductions into these totals. We'll add those up.

The amount you entered for itemized deductions is less than what you would receive for the standard deduction for your filing status. Our calculation will include the higher standard deduction.

Your adjusted income for Federal Income Tax Purposes

Note: This tax calculator is designed to figure out the tax impact of your self employment earnings. Therefore we make some assumptions. 

If there is additional income (such as W2 income) we are assuming that your self-employment earnings are in addition to that income.

Therefore, we are calculating that the self-employed business earnings are the highest taxes portion of your income.

The taxable portion of your business income is the part that is subject to Federal Income taxes of [999]
This completes step 4. Check the box blow to move on to Step 5

Income bracket limits and Calculations

Step 5

Step 5: Calculating Your Income Tax Impact

Reminder:The purpose for this calculator is to identify how much your earnings will impact your income tax bill as a self-employed independent contractor. Also remember that we are treating this as additional income, added to any other income you may have received.

The reason we asked about other income is to identify what tax brackets would impact your business income. If you have taxable income from other sources, that income will be calculated at the lower tax rates.

Of that income, based on additional information you provided and the filing status you selected, we anticipate it will be taxed at the following percentages:

No income tax impact.

Based on the information provided, your deductions and adjustments were greater than your total income.

Note: As this tool is designed for gig economy workers, we did not include calculations for anything above the 24% tax bracket. While it's not impossible for gig economy workers to have taxable income that exceeds the 24% tax bracket it would be unusual enough that we did not include calculations above the 24% bracket.

This completes step 5. Check the box blow to see your business's overall tax impact

Step 6

Your Overall Tax Impact from your Business Income:

Based on the information you input, we estimate that this is the overall impact from your business profits.

This is not an estimate of your overall tax bill, nor is it an estimate of what you will pay in or get for a refund. 

This is an estimate of your tax impact. This helps you determine how much extra you will pay (or possibly how much less you get in refund) based on your business profits. 

If you expect business earnings to be consistent, the average monthly or weekly amounts below can help you to plan for future tax savings.

Could this help someone else? Please share it.

James P Gibson

Thursday 31st of March 2022

It says 549 so is that tax I need to pay?