Estimate only, not tax advice. Check IRS.gov or a tax professional before you pay.
If you have a paycheck and 1099 income, you can cover the freelance tax two ways: extra withholding from your paycheck, or quarterly estimated payments. This page compares them and shows how to size each. For the basics, see side hustle income with a W-2 job.
Example (made-up numbers, single filer, 2026): $70,000 of W-2 wages and $20,000 of freelance profit.
| Wages only | Wages + freelance | |
|---|---|---|
| Self-employment tax | $0 | $2,826 |
| Federal income tax | $6,570 | $10,659 |
| Total | $6,570 | $13,485 |
The freelance income adds about $6,915, assuming your employer's withholding already covers the tax on your wages. Standard deduction only; no credits or state tax.
On Form W-4, Step 4(c) lets you ask for an extra amount per paycheck. Divide the extra tax by the paychecks left this year. With 26 biweekly paychecks for the full year, $6,915 ÷ 26 ≈ $266 per paycheck. Starting in October with 5 paychecks left, it's $6,915 ÷ 5 ≈ $1,383.
Why this can beat estimated payments: the IRS treats withholding as paid evenly through the year unless you elect otherwise, so extra withholding late in the year counts toward earlier quarters too. A late estimated payment only counts from the day you pay it.
Pay roughly $6,915 ÷ 4 ≈ $1,729 by each of April 15, June 15 and September 15, 2026 and January 15, 2027. This works better if your freelance income is unpredictable, because you can adjust each payment, and it leaves your paycheck alone.
Many people set a modest extra W-4 amount and top up with an estimated payment if freelance income runs higher. Either way, what matters for the penalty is whether withholding plus payments meet the safe harbor.
Enter your wages, withholding and freelance profit in the calculator below. The IRS Tax Withholding Estimator can also help you set the W-4 amount.
Estimate only, not tax advice. Figures are for tax year 2026 from IRS sources (Form 1040-ES, Rev. Proc. 2025-32 and the pages listed under Sources) and the SSA. Confirm with IRS.gov or a tax professional.
Sources: IRS Publication 505 · IRS Form W-4 · IRS Tax Withholding Estimator
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