Pass-Through & Self-Employment

Tax tools for sole proprietors, partnerships, S-corps, and LLC owners.

Welcome to our Pass-Through and Self-Employment hub. Here you will find tools designed to help with QBI deductions, self-employment tax calculations, estimated tax payments, and other pass-through entity tax needs. Each tool is built on the latest IRS regulations and official guidance.

Whether you are a sole proprietor, freelancer, independent contractor, or the owner of a partnership, S-corporation, or multi-member LLC, the way your business is taxed is different from a traditional employee. You pay self-employment tax on Schedule SE, you may qualify for the 20% qualified business income (QBI) deduction, and your withholding never happens automatically — you are responsible for estimated tax payments. State rules add another layer, such as New York's Pass-Through Entity Tax (PTET) election and NYC's Unincorporated Business Tax (UBT).

Use the tools below to check whether 1099 income actually owes self-employment tax, compare the real employer cost of a W-2 employee versus a 1099 contractor, evaluate a NYS PTET election, compute NYC UBT allocation, and estimate your full self-employment tax with the QBI deduction. For related payroll and business tools, see the USA Calculators hub and the Finance Tools hub.

📅 Updated for 2026 ✍️ Verified by AKCalc Financial Team

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1099-MISC Box 3 Self-Employment Tax Exemption Checker

Confused if your 1099-MISC Box 3 "Other Income" owes self-employment tax? Answer 4 quick questions and get a clear answer, plus TurboTax/TaxAct fixes and amendment guidance. Updated for 2026.

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W2 vs 1099 California Employer Cost Calculator

Compare total W-2 employee vs 1099 contractor costs in California for 2026. Includes UI, ETT, FICA, workers' comp, benefits, and ABC test compliance.

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NYS PTET Electing vs Non-Electing Partner Allocation Calculator

Compare each partner's tax impact side-by-side and decide if the entity-level PTET election actually saves your New York partnership money. Free calculator updated for 2026.

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NYC UBT Allocation Factor Calculator

Compute your NYC Unincorporated Business Tax allocation percentage across NYC, NYS, and other jurisdictions — with audit-defense scenarios. Free calculator updated for 2026.

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Self-Employed Tax Calculator

Calculate your 2026 self-employment tax using Schedule SE. Includes QBI deduction, Medicare surtax, and tax comparison for sole proprietors, freelancers, and independent contractors. Free and updated for 2026.

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Frequently Asked Questions

What is the QBI deduction and who can claim it?

The qualified business income (QBI) deduction lets eligible owners of pass-through businesses deduct up to 20% of their qualified business income on their personal return, subject to taxable income thresholds and limits. Above those thresholds, specified service businesses (such as accounting, law, and consulting) begin to phase out. The deduction is available to sole proprietors, partners, and S-corp and LLC owners whose business income flows through to their personal return.

Do I owe self-employment tax on 1099 income?

Generally yes. If your net earnings from self-employment are $400 or more, you owe self-employment tax of 15.3% (12.4% Social Security up to the wage base plus 2.9% Medicare), with an additional 0.9% Medicare surtax on high earners. However, some payments reported on a 1099 — such as certain 1099-MISC Box 3 amounts — are not always self-employment income. Use the 1099-MISC Box 3 Exemption Checker to confirm before you file.

Should my New York partnership elect the PTET?

New York's Pass-Through Entity Tax (PTET) lets a qualifying partnership or S-corp pay an entity-level tax and pass a corresponding credit to its owners, which can work around the $10,000 federal state-and-local tax (SALT) cap. The election is worth it when owners itemize and would otherwise lose part of their New York tax deduction — but the math depends on each partner's situation. Compare both sides with the NYS PTET Electing vs Non-Electing Calculator.

Is an S-corporation or an LLC better for self-employment tax?

An LLC taxed as a sole proprietorship or partnership treats all business profit as self-employment income. An S-corp pays the owner a reasonable salary (subject to payroll and self-employment taxes) and distributes remaining profit free of self-employment tax. The S-corp can save tax on profits above a reasonable salary but adds payroll administration and compliance costs. Run both scenarios through the W2 vs 1099 Employer Cost Calculator to compare total costs.