Taxes are not taken out of the money you're paid on a 1099 as an independent contractor or freelancer.
This means you're responsible for setting aside and paying your federal and state taxes in full.
It can be hard to remember to set money aside consistently, much less calculate how much.
Catch helps make it easy to save money for taxes each time you get paid.
Our quick and easy tax estimator gives you a rough sense of how much of each paycheck you should be setting aside to cover your obligation.
Then your Tax Withholding plan can divvy up your paycheck according to the rules you set.
When it comes time to pay quarterly estimated taxes, you can also make a tax payment to the IRS directly from your Tax Withholding plan in Catch. That way, you don't have to think about it.
You can also make adjustments to your withholding percentages at any time.
Note: the calculator is not designed to tell you your exact legal tax burden. Withholding is based off your estimated income as well as a few other factors that determine your tax bracket. There's more that makes up for exact tax burden, like your retirement contributions, business expenses, and other things that can shift how much you owe.
Think of Catch as a quick and easy way to make sure you're prepared. Keep in mind, you'll still need to file your taxes by the April deadline for the previous year.