“The only thing worse than starting something and failing… is not starting something.” —Seth Godin.
You built your freelance business for freedom… but that independence comes with an administrative trade-off: no one is withholding taxes for you.
If you haven’t been setting aside part of every payment, April 15 can feel like an ambush.
The good news is that freelancer and gig worker taxes are manageable once you understand the moving parts and build a system around them.
For the 2025 tax year, a client who paid you 600 dollars or more by check, bank transfer, or cash should have sent you a Form 1099-NEC by January 31, 2026.
Payment apps and third-party processors would’ve issued you a 1099-K if you exceeded 20K in payments and 200 transactions.
(Income below those thresholds is still taxable and belongs on Schedule C.)
If your net profit is 400 dollars or more, you also file Schedule SE to calculate self-employment tax, which covers the Social Security and Medicare taxes an employer would normally share with you.
From there, your net profit flows into Form 1040 and gets added to any other income you had (such as W-2 wages, interest, or investment income).
When it comes to planning for your taxes, I usually recommend freelancers and gig workers set aside 25–30 percent of their income for taxes.
An easy way to do this is, when income comes in, move a set percentage into a separate tax savings account right away.
The big date you need to focus on right now is April 15. That’s the deadline to file your 2025 return and pay any remaining 2025 tax due.
It’s also the due date for your first 2026 estimated payment. The 2026 estimated tax deadlines are:
- Q1: January 1 to March 31 → payment due April 15, 2026
- Q2: April 1 to May 31 → payment due June 15, 2026
- Q3: June 1 to August 31 → payment due September 15, 2026
- Q4: September 1 to December 31 → payment due January 15, 2027
But how do you know how much you should pay the IRS each quarter?
Pay 90 percent of your current-year tax OR 100 percent of your prior-year tax by the April tax deadline. Calculate that number and divide it into 4 quarterly payments throughout the year.
As you can tell, there’s a whole lot that goes into doing your freelancer taxes the right way.
But we would hate to see your tax obligations get in the way of the amazing work you’re doing.
Let us help get your taxes done this tax season AND keep you compliant all year round. And – this can sometimes be as important or more than staying compliant – let us help you strategically save taxes through conversation. More on that next week.