Freelance Taxes, Simplified
Everything you need to know about U.S. freelance taxes — clear, concise, and stress-free.
What is a 1099 Form?
If you earn over $600 from a client as a freelancer, you’ll likely receive a 1099-NEC form. This document reports your earnings to the IRS — and yes, it means you’re responsible for your own taxes.
What Taxes Do You Owe?
- Self-employment tax: 15.3% for Social Security & Medicare
- Federal income tax: Depends on your tax bracket
- State income tax: If applicable in your state
Can You Deduct Expenses?
Absolutely. Track your legitimate business expenses to reduce your taxable income: software, gear, phone bills, internet, office space, mileage, etc.
Quarterly Payments & Estimated Taxes
If you expect to owe more than $1,000 in taxes, the IRS requires you to make estimated quarterly payments. Missing them could lead to penalties.