Guides for freelancers and 1099 contractors
How self-employment tax, quarterly payments and deductions work, and how to price your time. Every figure is from the IRS or another official source.
Updated · Tax year 2026
- 1099 contractor taxes: what you owe and how it is figured in 2026A single 1099 contractor with $80,000 of 2026 profit owes about $16,647 in federal tax, about two-thirds of it self-employment tax. See each step and form.
- 1099-K vs 1099-NEC for freelancers in 2026A 1099-K reports card and payment-app income: apps file one only above $20,000 and 200 transactions in 2026. See how it differs from a 1099-NEC.
- Business expenses for self-employed freelancers: the 2026 deduction listFreelancers deduct ordinary and necessary costs on Schedule C, from software to mileage at 72.5¢ to 76¢ for 2026. See each expense and the line it goes on.
- Day rate vs. hourly vs. project pricing: which should you use?A $90 hourly rate at 6 billable hours is a $540 day rate; a 40-hour project with a 20% buffer is $4,320. Learn to convert between pricing models.
- Freelance invoice basics: what to include, late fees and tax recordsList your details, client, invoice number, dates, line items, total and Net 15 or Net 30 terms. Plus late fees, deposits and the 2026 $2,000 1099-NEC rule.
- Freelancer tax checklist: what 1099 contractors should do before tax seasonYour 2026 return is due April 15, 2027, and the last estimated payment is due January 15, 2027. Use this checklist for 1099 forms, schedules and deadlines.
- How many billable hours can a freelancer really plan on?At 25 billable hours a week for 48 weeks you bill 1,200 hours a year. See how utilization changes the hourly rate you need to reach $100,000 in revenue.
- How much to set aside for taxes on 1099 income in 2026A single freelancer with $100,000 of 2026 profit owes about 22.4% in federal tax, SE tax included. See computed rates from $50k to $200k, plus state tax.
- How the business mileage deduction works in 2026The 2026 IRS business mileage rate is 72.5 cents for January to June and 76 cents from July 1. See what counts, what records to keep and a worked example.
- How the estimated tax penalty works, and how safe harbor avoids itThe IRS charges 6% to 7% a year on each late or short 2026 estimated tax payment. See how Form 2210 figures it, the safe harbor tests and a worked example.
- How the home office deduction works for freelancersThe simplified home office deduction is $5 per square foot, up to 300 sq ft ($1,500). Compare it with the regular method in a worked example for a renter.
- How the self-employed health insurance deduction works in 2026Deduct medical, dental, vision and long-term care premiums (up to $930 at ages 41 to 50 for 2026) if you are self-employed. See the limits and an example.
- How to calculate self-employment tax in 2026Self-employment tax is 15.3% of 92.35% of your net profit, with Social Security capped at $184,500 for 2026. See the formula and a worked $100,000 example.
- How to file taxes as a freelancer for tax year 2026Freelancers file Form 1040 with Schedule C and Schedule SE by April 15, 2027 for tax year 2026. Follow the steps, forms, extension rules and payment plans.
- How to fill out Schedule C as a freelancerSchedule C turns your 1099 income and business expenses into net profit on line 31. See which lines freelancers use and a worked $85,000 example for 2026.
- How to raise your freelance rates without losing good clientsQuote new clients higher first, then give existing clients 30–60 days' written notice. Get three email templates and the math on a $75-to-$85 raise.
- LLC vs sole proprietor for freelancers: what changes on your taxesA single-member LLC is taxed like a sole proprietor by default: same Schedule C, same 15.3% SE tax. See what an LLC costs and how S corp election differs.
- Quarterly estimated taxes for freelancers in 20262026 estimated tax is due Apr 15, Jun 15, Sep 15 and Jan 15, 2027 if you expect to owe $1,000 or more. See the safe harbor rules and how to pay the IRS.
- SEP IRA vs solo 401(k) for freelancers in 2026On $60,000 of 2026 profit, a SEP IRA allows $11,152.23 while a solo 401(k) allows $35,652.23. Compare limits, deadlines, Roth options and paperwork.
- The QBI deduction for freelancers in 2026Freelancers can deduct up to 20% of business income. On $100,000 of 2026 profit, a single filer deducts $15,367.04. See the limits and thresholds.