A 1099 IT support specialist in Iowa pays a flat 3.8% state tax on net profit, stacked on federal income tax and the 15.3% self-employment tax a W-2 employer would have split with you. Iowa completed its move to a flat 3.8% and dropped the old federal deductibility rules, and every dollar of tools, parts and mileage you document on Schedule C cuts all three bills at once.
