Freelancer and self-employed tax
Self-employment tax is the line that surprises people — and the retirement contributions that reduce it are the ones most freelancers never make.
You are in the right place if…
Freelancers and consultants
1099 income from several clients, or from none who issued one.
Gig and platform workers
Rideshare, delivery, and 1099-K income from payment platforms.
Side businesses
Employment income plus something on the side that has started to matter.
Everything in the fee
- Business income and expensesSch. C
- Self-employment tax calculationSch. SE
- Home office deduction8829
- Vehicle and mileage deduction4562
- Quarterly estimated payments1040-ES
- Self-employed health insurance deductionSch. 1
- SEP IRA and Solo 401(k) planningAdvisory
- Qualified business income deduction8995
The tax nobody budgets for
Employees split Social Security and Medicare with their employer. Self-employed people pay both halves — roughly 15.3% on net earnings, before any income tax at all. It is the single biggest shock for people in their first year of freelancing, and it is why quarterly estimated payments exist.
Retirement contributions are the largest lever you have
A SEP IRA or Solo 401(k) lets a self-employed person shelter far more income than an ordinary workplace plan allows, and the Solo 401(k) in particular is frequently better for people with moderate profit because it permits both employee and employer contributions. Most freelancers we meet are not using either.
Deductions people miss, and one they overreach on
Missed regularly: health insurance premiums, half of self-employment tax, business use of a phone and internet, professional development, and mileage that was never logged. Overreached regularly: the home office, which requires regular and exclusive business use of the space — a dining table does not qualify, and claiming it invites scrutiny of everything else.