Taxes for the self-employed and freelancers
When you work for yourself, nobody withholds tax, the IRS expects payments four times a year and every expense is a question. We prepare your Schedule C and personal return, work out estimates you can plan around and tell you when an LLC or S-Corp makes sense.
Updated November 2026
What should every freelancer know?
Get these right and most tax-time stress goes away.
All income counts
Whether or not a 1099 shows up. From 2026 clients only send one at $2,000, and apps at $20,000. 1099 rules
Pay as you go
100% of last year's tax (110% at higher incomes) is a common safe harbor.
Separate account
Simple books turn deductions from guesses into records.
Know when to level up
An LLC protects you legally. An S-Corp can cut self-employment tax.
Which deductions can I take?
Ordinary and necessary business expenses, with records to back them up.
- Software, equipment and supplies you use for the work
- A home office used regularly and only for business
- Business mileage, at the standard rate or actual costs
- Half of the employer-equivalent self-employment tax
- Health premiums if you can't join an employer plan
- A SEP-IRA or solo 401(k)
An LLC separates your business from your personal assets, which is a legal benefit, not a tax one. A single-member LLC is taxed like a sole proprietor unless it elects otherwise. Many freelancers form one once they have steady clients or real liability risk. See LLC formation.
When profit is comfortably above a reasonable salary for your work. Below that, the payroll and return costs usually outweigh the savings. Try the S-Corp calculator for a first estimate.
Freelancers ask us.
Ask anything else on a free 30-minute call.
Book a callSources: IRS self-employed tax center, Publication 334
Free tools: Self-employment tax calculator, 1099 tax calculator, Quarterly tax calculator, Solo 401(k) calculator
I didn't get a 1099 from a client. Do I still report the income?
Yes. All business income is taxable whether or not a form arrives. Your own records are what count.
I missed my quarterly estimates. What happens?
The IRS charges an underpayment penalty that works like interest on the amount you were short. Paying as soon as you can keeps it smaller, and we'll set up a plan for the rest of the year.
Do you work with gig workers and creators?
Yes. Rideshare, delivery, content, freelance design and development all work the same way at tax time.
What is the self-employment tax rate?
15.3% on 92.35% of your net self-employment earnings. That's 12.4% for Social Security, up to the 2026 wage base of $184,500, plus 2.9% for Medicare with no cap. You deduct half of it when you figure your income tax.
Do I need to send 1099s to people I pay?
Only to contractors you pay through your business, and for payments made in 2026, only once you've paid someone $2,000 or more in the year. Card and payment app payments don't count. See our 1099 rules guide.
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