The Number Most Gig Workers Get Wrong
Setting aside a flat 20% or 25% from every 1099 payment is a guess, not a formula — and it's usually wrong in one direction or the other. How much to set aside for 1099 taxes actually depends on your total income, filing status, and deductions, not a single fixed percentage.
The Real Formula
Self-employment tax is 15.3% on roughly 92.35% of your net profit — that part is fixed. Income tax on top of that depends on your tax bracket, which depends on your total household income. For most gig workers earning $20,000–$50,000 in 1099 income with no other income, 25–30% set aside is a reasonable starting range — but it's a range, not a rule.
Why the Flat Percentage Fails You Twice
Set aside too little and you owe a penalty plus a scramble in April. Set aside too much and you've locked up cash you could have used for the business or your own bills. Both mistakes come from using someone else's percentage instead of your actual numbers.
Let SUNY Calculate the Real Number
SUNY recalculates your estimated tax in real time as you log 1099 income and expenses, based on your actual profit — not a guess. Check it before every quarterly due date so the amount you set aside matches what you'll actually owe.