Self-Employment

Built for freelancers, contractors, and solopreneurs.

When you're self-employed, you're the employer and the employee. That means a 15.3% self-employment tax on top of income tax — but it also unlocks deductions W-2 workers can't touch.

The SE tax math

Self-employment tax = 15.3% on the first $168,600 of net SE earnings (12.4% Social Security + 2.9% Medicare), then 2.9% Medicare on everything above. You deduct half of SE tax as an adjustment to income on Form 1040.

What goes on Schedule C

All 1099-NEC and cash income from your business. Then every ordinary and necessary expense: software, advertising, contractors you paid (issue them 1099-NECs over $600), insurance, supplies, professional fees, and home office.

Don't forget

Pay quarterly estimated taxes (April 15, June 15, Sept 15, Jan 15). Open a SEP-IRA or Solo 401(k) — you can deduct up to ~25% of net SE earnings. Track mileage with a logbook or app (Standard Mileage Rate published annually).