Commission taxes, 1099
Free tax calculator for remote sales reps and closers paid on 1099. Enter your commission income and see the self-employment tax, the income tax, and what to set aside each quarter. Remote sales rep taxes on 1099 commission are self-employment taxes: nothing is withheld from a commission check. Actual 2026 figures, under a minute.
Before you pay
A W-2 rep has income tax and half of Social Security and Medicare taken out of every check. A 1099 rep gets the full commission and owes all of it: income tax plus the 15.3% self-employment tax, paid during the year through quarterly estimates. Reps who move from W-2 to 1099 mid-year are the ones most often surprised in April.
A monthly retainer, a per-close bonus and a commission on collected revenue are all the same income to the IRS, taxed when paid. A clawback on a refunded deal reduces income in the year it is clawed back. Enter your net commission income for the year after clawbacks and the software and tools you pay for yourself.
Map all four quarterly payments →A home office, the business share of your phone and internet, dialer and CRM subscriptions you pay for, a laptop and headset, coaching and training programs, and travel to in-person events all reduce the profit the tax is calculated on. Enter your profit after those costs.
Estimate the write-offs you are missing →Want commissions, quarterlies and the S-corp handled from books that are kept every month?
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That is the company's classification call, and it has to match the reality of the role. If you are treated as a contractor, the tax side described here is yours to manage. If you are misclassified, the remedy is with the company and the IRS, not the calculator.
Only the bookkeeping. Every payer that crosses the reporting threshold sends a 1099, but the income is taxable whether the form arrives or not. Add it all together; the tax is calculated on the total.
Usually yes, once the tax on your 1099 commissions is more than $1,000 for the year. Add your W-2 wages and withholding in the optional fields and the calculator tells you whether your paycheck already covers it.
Roughly above $80,000 of commission profit, when the self-employment tax saved on distributions clears the cost of payroll and a separate return. Amadae runs that math for members and handles the election, salary and payroll when it pays off.
Estimate only, using TY2026 federal figures (Rev. Proc. 2025-32): the standard deduction, a simplified QBI deduction, and no credits or capital gains. State taxes are separate. Not tax advice.
Terms behind this calculator
Form 1099-NEC/Self-employment tax/Quarterly estimated taxes/Safe harbor payments
We connect your commission payouts, keep the books, set the tax aside as you get paid, schedule the quarterly payments, and switch you to an S-corp when it saves more than it costs.
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