1099 Tax Calculator

Yes, it’s possible to have both 1099 income and W-2 income. Most people with a full-time job and a side hustle fit into this category.

For example, let’s say you’re a marketing professional who has a salaried job at an agency but also offers consulting services to clients on the side. You’d receive a W-2 from your salaried job and 1099 forms from your clients.

There are several ways in which working with 1099 contractors might be advantageous for employers than hiring W-2 employees, including:

• Cost savings. When employers opt for 1099 contractors, they’ll save on taxes as well as the cost of benefits for a full-time W-2 employee.
• Flexibility. Contracting with 1099 workers is often ideal for short-term, project-based hiring. Need a web developer for a one-month project only? A contractor is the way to go.
• Highly specialized skills. Connecting with the right 1099 contractor means an employer can find exactly who they need for a particular project or task — with minimal training required.

Not sure whether you should pursue 1099 work? Here are some pros and cons to consider.

Pros of self-employment

• You can set your own hours
• You can choose your clients — and nix the ones that aren’t working for you
• Working with multiple clients often means a varied and exciting work environment

Cons of self-employment

• Your income can be inconsistent throughout the year, meaning you’ll have to budget carefully
• You won’t receive benefits like company-sponsored healthcare, sick leave, or paid time off

You’ll file your 1099 taxes using the following forms:

• Schedule C
• Schedule SE
• Form 1040

You may also need to file other forms, depending on your particular tax situation. Check out Keeper’s guide to filing self-employment taxes for step-by-step instructions.