First-Time 1099: How Much Tax Do I Owe on About $6,500 and What If I Missed Quarterly Payments?

Someone on Reddit is asking how to do taxes when they live in the US and have never done 1099 work before. They are new to the financial side of contracting and made around $6,500 in self-employment income. They want to know how much they would realistically need to pay in taxes and what to do because they missed the last round of quarterly estimated tax payments while busy with school. When you earn income as an independent contractor (1099 work), you are responsible for paying your own taxes: both federal income tax and self-employment tax (Social Security and Medicare). For 2025, self-employment tax is approximately 15.3% on your net earnings from the business; you can deduct half of that when figuring your adjusted gross income. If you earn more than $400 in self-employment income, you must file a tax return (Form 1040 with Schedule C and Schedule SE). On about $6,500, a rough amount to set aside for taxes is around 15–30% of your income, depending on your total income and deductions. If you missed quarterly payments, you may owe penalties and interest, but you can still file your return by the April deadline and pay what you owe to limit further penalties.

Bottom line: As a self-employed person who made about $6,500, you must file a tax return (you have a filing requirement because self-employment income over $400 triggers it). You will owe federal income tax (based on your total income and deductions) plus self-employment tax (about 15.3% on net earnings; you can deduct half when calculating AGI). A practical range to set aside is about 15–30% of that income for taxes, depending on your situation. If you missed quarterly estimated tax payments, you can still file by the April due date and pay any balance due; that helps minimize additional penalties and interest. For exact numbers and penalty questions, a tax professional can help.

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Question from Reddit

If you live in the US, how do you go about your taxes?

I have never done 1099 work before. I am fairly unaware of all the financial lingo.

Let's say I have made around $6,500. How much would I realistically need to pay back?

I missed the last bout of quarterly taxes because I was so busy with school. Basically what I'm saying is help, lol (also please be nice, I'm sensitive)

Source: Reddit

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Analysis

The poster is in the US, has never done 1099 work before, and is unfamiliar with tax and financial terms. They earned around $6,500 from self-employment (contract/1099 work) and want to know how to go about their taxes and how much they would realistically owe. They also missed the last round of quarterly estimated tax payments because of school. When you are self-employed, you owe income tax on your profit and self-employment tax (Social Security and Medicare) on your net earnings; there is no employer withholding, so you are responsible for estimating and paying tax (often quarterly). Missing quarterly payments can lead to underpayment penalties and interest, but filing and paying by the annual deadline still matters and can reduce further penalties. The analysis below explains what they need to file, how tax is calculated, and what to do about missed quarterlies.

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Answer

How much tax do I owe on about $6,500?

As a self-employed person earning around $6,500 (net profit from your 1099 work):

1. Self-employment tax: For 2025, self-employment tax is approximately 15.3% of your net earnings from the business (this covers Social Security and Medicare). You are allowed to deduct one-half of your self-employment tax when calculating your adjusted gross income (AGI) on your Form 1040, which slightly reduces your income tax.

2. Federal income tax: You also owe federal income tax on your taxable income (after the standard deduction or itemized deductions and other adjustments). The exact amount depends on your total income (including this $6,500 and any other income), filing status, and deductions.

3. Rough range: As a practical estimate, many people set aside about 15–30% of their self-employment income for federal taxes (income tax plus self-employment tax). So on $6,500, a ballpark amount to plan for could be in the rough range of about $1,000 to $2,000 or so, depending on your total income, deductions, and filing status. This is not a precise number; use IRS tax tables or a tax pro (or software) to get a number specific to you.

Do I have to file?

Yes. If your net earnings from self-employment are more than $400 in a year, you have a filing requirement. You must file Form 1040 and report your business income and expenses on Schedule C. You then use Schedule SE to compute your self-employment tax. So with about $6,500 in 1099 income, you need to file and report this income.

I missed quarterly estimated tax payments. What do I do?

If you missed one or more quarterly estimated tax payments, the IRS may charge penalties and interest on the underpayment for those periods. You cannot undo the missed payments, but you can:

1. File your annual return by the due date (usually April 15 for the prior year, or the next business day if it falls on a weekend/holiday).
2. Pay any tax you owe with that return (or as soon as you can). Paying by the April deadline helps limit additional penalties and interest that would otherwise keep accruing.
3. Consider speaking with a tax professional if you are unsure how much you owe or how to report your 1099 income; they can help you estimate tax, fill out Schedule C and Schedule SE, and explain any penalty that might apply.

You are not alone in missing quarterlies; the important step is to file and pay so you get back on track.

Related: Single-Member LLC, Pass-Through, Schedule C · W-2 to K-1 Switch: Pros and Cons · Prepayments and $184k Stock Gain: Estimated Tax · Section 179 Partial Deduction

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Applicable Sections

Federal / IRS

• IRC § 1401: Self-employment tax applies when net earnings from self-employment exceed $400. You must report self-employment income and pay Social Security and Medicare taxes on that income. (IRS Self-Employed Individuals Tax Center)
• Form 1040, Schedule C, Schedule SE: Use Form 1040 to file your individual income tax return. Report business income and expenses on Schedule C (Profit or Loss From Business). Use Schedule SE to calculate your self-employment tax. (IRS instructions for Form 1040, Schedule C, and Schedule SE.)
• Estimated tax: If you expect to owe $1,000 or more in tax after withholding and credits, you generally must pay estimated tax during the year (e.g., quarterly). Missing payments can result in underpayment penalties and interest. (IRS Estimated Taxes)

State

• This answer does not cover state income or self-employment taxes. Many states tax self-employment income; check your state rules or a state tax advisor.

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Practical Notes

• Filing requirement: Self-employment income over $400 means you must file a return; report the income on Schedule C and Schedule SE.
• Rough estimate: Set aside about 15–30% of your net 1099 income for federal taxes (income tax plus self-employment tax); use IRS tax tables or a tax pro for a number that fits your situation.
• Missed quarterlies: File by the April deadline and pay any balance due to limit penalties and interest. A tax professional can help you figure the exact amount and explain any penalty.
• Margen can help you organize your income and documents and understand how 1099 income fits into your overall tax picture.

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Limitations

This answer does not cover state tax obligations or specific deductions (e.g., home office, mileage) that might apply to you. It does not provide a precise tax amount for your exact situation. For tailored guidance, especially on missed quarterly payments, penalties, and how to file, consult a tax professional. Margen can help you get your information in order and see how your 1099 income affects your return.