Clipping income tax set-aside calculator.

Worked example

Take $12,000 of clip income in the year, no fee withheld and $800 of expenses. Net profit is $11,200. Self-employment earnings are $11,200 × 92.35% = $10,343.20. Self-employment tax is $1,582.51 (12.4% Social Security plus 2.9% Medicare). Half of it, $791.25, comes off income, then the 2026 standard deduction, and $0.00 of federal income tax remains for a single filer. The total is $1,582.51, or 13.2% of the $12,000 received and 14.1% of net profit.

A small case: $300 of clip income with no expenses gives self-employment earnings of $277.05, under the $400 trigger, so no self-employment tax. The income is still taxable and may still need to be reported.

Methodology: how this works

The page first works out net profit: income received after any fee the payer withholds, minus your expenses. If that is zero or negative there is nothing to tax. Otherwise it calls the same 2026 model as the 1099 tax set-aside calculator: self-employment tax on 92.35% of net profit at 12.4% Social Security (up to the $184,500 wage base) plus 2.9% Medicare, a 0.9% Additional Medicare Tax above the statutory thresholds, half of self-employment tax deducted, the standard deduction, then the 2026 federal brackets. A state rate is a flat percentage of net profit that you type in.

The IRS says you owe self-employment tax when net earnings from self-employment are $400 or more; Schedule SE measures that after the 92.35% adjustment, which is why profit of about $433 is where it starts. The fee field only matters if your payer withholds a percentage before paying you; check how the payer reports the amount.

If you treat clipping as a job with one payer, read the reporting guide to see when a 1099-NEC is due. Nothing you type leaves the page.

What this does not cover

• Other income, wages or a spouse's earnings
• The qualified business income deduction, itemised deductions and credits
• Whether you are an employee or a contractor for a given campaign (read your terms)
• Local taxes and the exact rules of your state
• Income tax outside the United States (see the Canadian guide)

Results vary. This page uses the numbers you enter. It does not predict, estimate or promise what anyone will earn from clipping, and it collects nothing: everything runs in your browser.

Sources

Official pages checked 2026-10-19 (retrieved October 2026):

• IRS: Self-employment tax (Social Security and Medicare taxes), $400 net earnings and 15.3% rate
• IRS: Schedule SE (Form 1040)
• IRS: Instructions for Forms 1099-MISC and 1099-NEC ("What's New": $2,000 threshold after 2025)

FAQ

Do clippers pay taxes?

Income from clipping is generally taxable in the US whether or not you receive a tax form. If you are self-employed and your net earnings are $400 or more, self-employment tax also applies.

Is clipping income self-employment income?

Often, when you are paid per campaign or per view as an independent contractor rather than as an employee. Your campaign terms and the IRS employee-or-contractor guidance decide, so this page assumes self-employment.

How much should I set aside from each payout?

The result shows a percentage based on your own inputs. It rises with profit because tax brackets climb. Saving that share of each payout is a way to avoid a bill at filing time.

Do I deduct the platform fee and my editing software?

Ordinary and necessary business expenses reduce net profit. Enter fees withheld and expenses separately, and keep receipts. Which items qualify is a question for the IRS instructions or a tax professional.

Do I owe tax if I earned under $400?

Self-employment tax applies at $400 or more of net earnings. Income tax and reporting rules are separate, and the income is taxable either way.

Is this the same as the 1099 set-aside calculator?

It uses the same maths. This page adds the clip-specific inputs of platform fee and expenses and the clipping framing; for any other kind of 1099 income use the general calculator.