⚠ Disclaimer: Educational only. Not legal/tax/financial advice. Always verify on official government websites.
Freelancers, gig workers, and independent contractors must report all income, pay self-employment tax (15.3%), and make quarterly estimated payments to the IRS.
📋 What You Need
- All 1099-NEC and 1099-K forms
- Records of all business income and expenses
- Mileage log if claiming vehicle deductions
1
Understand your tax obligations
You owe: federal income tax on net profit, self-employment tax of 15.3% on net profit, and state income tax.
2
File Schedule C
Schedule C reports all freelance income and business deductions.
3
Claim all legitimate business deductions
Home office, internet, software, equipment, health insurance premiums.
4
Pay quarterly estimated taxes
If you expect to owe $1,000+ in taxes, make quarterly payments.
5
File Schedule SE
Schedule SE calculates your 15.3% self-employment tax.
Frequently Asked Questions
What if I received payments through PayPal?
You must report ALL income regardless of whether you receive a 1099.
Can I deduct my car?
Yes – Standard Mileage Rate or Actual Expenses.