Tax Impact Calculator

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.

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.

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.

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.

No income tax impact.

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

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.