Tax Estimator
Self-employment tax calculator with quarterly payment schedule.
What This Estimate Covers
- Self-employment tax. Estimate Social Security and Medicare tax on net reseller profit.
- Income tax set-aside. Model a practical reserve so tax bills do not surprise your cashflow.
- Quarterly planning. Translate expected annual liability into payment targets.
Understanding Reseller Taxes
As a reseller, you are generally treated as self-employed. That means you are responsible for tracking income, claiming deductions, and making tax payments when required.
Self-employment tax
Covers Social Security and Medicare. You pay both halves but can deduct part on your return.
Federal income tax
Net profit is taxed at your marginal rate after deductions.
Quarterly payments
If you expect to owe enough, quarterly payments help avoid penalties.
Record Keeping Tips
- Keep receipts for inventory purchases
- Track mileage for sourcing trips
- Save receipts for shipping supplies
- Document platform fees from statements
- Use bookkeeping software throughout the year
Common Questions
Do I have to pay taxes on reselling income?
Yes. If your net self-employment income exceeds $400 per year, you must file a tax return and pay self-employment tax. This applies regardless of whether you receive a 1099 form.
What is self-employment tax?
Self-employment tax is 15.3% of net profit for Social Security and Medicare. It is separate from federal income tax. Self-employed sellers pay both the employer and employee portions.
Do I need to make quarterly tax payments?
If you expect to owe $1,000 or more in taxes for the year, you generally should make quarterly estimated payments to avoid underpayment penalties.
What expenses can I deduct as a reseller?
Common deductions include cost of goods sold, shipping, packaging, platform fees, sourcing mileage, a business portion of phone or internet, home office expenses, and business software.
Will I get a 1099 from selling platforms?
Platforms may issue 1099-K forms when you cross reporting thresholds, but you must report all taxable business income even if no form arrives. Keep your own records of sales and expenses.
Methodology & Limits
How it works
This calculator calculates a reselling scenario from your inputs, then surfaces the result as decision-oriented numbers.
Assumptions
Uses current tax rates assumptions where relevant.
Use it as a screen
Treat the output as a planning estimate. Share the current scenario URL when you want to revisit or compare assumptions. Validate the numbers with real payouts, costs, deadlines, and local rules before committing money.
Next action
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