Updated for the 2026 Tax Year
TaxDeDuck Logo

Methodology & About Us

Expert Reviewed
Updated for 2026 Tax Year

At Tax De-Duck, transparency is our core principle. We built this tool to help freelancers demystify their taxes. Here is exactly how our calculator works and the official IRS sources we rely on.

Our Mission and Team

Tax De-Duck was created by independent developers and freelance financial advocates to provide an accessible, free estimation tool for the gig economy. We are not a certified CPA firm, and this tool should be used for educational and planning purposes only.

How We Calculate Your Taxes

1. Self-Employment (SE) Tax

By default, all independent contractors must pay a 15.3% Self-Employment Tax on their net business profit, representing both the employer and employee portions of Social Security and Medicare taxes.

Formula: Net Profit × 0.9235 × 0.153

Source: IRS Self-Employment Tax Guidelines

2. The 50% SE Tax Deduction

The IRS allows you to deduct the "employer-equivalent" portion of your self-employment tax when calculating your adjusted gross income (AGI). Our calculator automatically applies this 50% reduction before computing your income tax burden.

3. Qualified Business Income (QBI) Deduction

For pass-through entities (like Sole Proprietorships and LLCs), the IRS offers up to a 20% deduction on qualified business income. We automatically calculate a simplified QBI deduction based on your net profit minus the SE Tax deduction.

Source: IRS Qualified Business Income Deduction

4. Standard Deduction vs. Itemized Deductions

Our tool dynamically applies the 2024/2026 expected standard deduction based on your chosen filing status:

  • Single / Married Filing Separately: $14,600
  • Head of Household: $21,900
  • Married Filing Jointly / Surviving Spouse: $29,200

5. Estimated Federal & State Income Tax

Instead of using complex graduated brackets which are difficult to estimate without comprehensive household data, we utilize a blended flat effective rate selected by you, combined with your state's generalized flat or progressive bracket average. For 100% precision with graduated marginal brackets, please consult a CPA.

Business Mileage (The Standard Rate)

We use the IRS standard mileage rate for the current tax year to estimate your vehicle deduction. For 2024, the rate is $0.67 per mile driven for business use.

Source: IRS Standard Mileage Rates

Disclaimer of Liability

Tax De-Duck makes no representations, warranties, or guarantees as to the exactness of the figures provided. Tax laws change frequently, and estimations may fall short. You bear full responsibility for the tax records and returns you file.