1099-K Profit & Tax Estimator

See how business expenses can lower the tax on your 1099-K income.

Your Income & Expenses

Gross Amount from Form 1099-K (Box 1a)

Common Business Deductions

Cost of Goods Sold

Platform & Processing Fees

Business Car Expenses

Supplies

Home Office

Other Expenses (ads, etc.)

Estimated Tax Impact

Total Deductions

Net Taxable Profit

Estimated Tax Due*

*Tax is estimated at a combined 25% rate for self-employment and income tax for simplicity. Your actual rate will vary.

Gross Income vs. Taxable Profit

Important: Is All 1099-K Income Taxable?

No. The gross amount on your 1099-K might include money that isn't business income. You do not owe tax on personal, non-business transactions like:

Money received from friends and family as a gift.
Reimbursements for a shared expense, like splitting a dinner bill.
Money from selling personal items (like a couch or TV) for less than you paid for them.

Be sure to only report the portion of your 1099-K amount that is from a business or "gig work" when you file your taxes.