Freelancer & Self-Employed Tax
Tax preparation and quarterly estimates for freelancers and independent contractors.
Quick Answer
- For an ordinary nonfarm sole proprietor, Schedule SE generally starts with 92.35% of net profit. The 12.4% Social Security portion applies only up to the remaining 2026 $184,500 wage base after covered wages; the 2.9% Medicare portion is not wage-base capped. Additional Medicare Tax depends on combined wages and self-employment income and filing status. The income-tax deduction for the employer-equivalent share is computed separately on Schedule 1.
- The simplified home-office method allows $5 per square foot up to 300 square feet ($1,500 maximum), while the actual-expense method allocates supported costs. A qualifying space generally must be used regularly and exclusively for business, subject to the statutory storage and daycare exceptions, and it must satisfy a principal-place-of-business, client-meeting, or separate-structure path.
- A New Jersey freelancer may have required NJ-1040-ES installments after applying projected complete-return tax, withholding and credits, required-payment rules, safe harbors, annualization, payment dates, and exceptions. The published rate is 10.00% annually for 2026 under NJ TB-21(R), but any NJ-2210 interest result uses the applicable rate and actual installment facts; no threshold alone establishes a payment or charge.
- The QBI deduction (IRC §199A) ordinarily allows eligible self-employed filers to deduct up to 20% of qualified business income, with a minimum $400 deduction for taxpayers who have at least $1,000 of aggregate QBI from active trades or businesses in which they materially participate - this is taken on the federal return but does not reduce NJ taxable income.
- Self-employed health-insurance premiums may be deductible on Schedule 1 through Form 7206, subject to the earned-income limit and the rule disallowing months when the taxpayer or spouse was eligible to participate in a subsidized employer plan. Any allowed deduction reduces AGI but does not reduce self-employment tax.
For an accepted engagement, freelancer and self-employed tax services may include Schedule C preparation, self-employment-tax calculation, specified estimated-payment calculations, and reporting of supported home-office and business-expense classifications from client-supplied records. Monaco CPA does not promise completeness, a minimum tax, or a savings result.
Freelancing and self-employment can involve issues that differ from wage-only reporting, including self-employment tax, estimated payments, Schedule C preparation, and substantiated business-expense classifications.
This service covers accepted federal and permitted-state returns for freelancers, independent contractors, sole proprietors, and gig workers. Recorded expenses and specified estimated-payment calculations are reviewed from client-supplied facts; the client tracks deadlines and transmits payments, and no deduction, penalty, or tax result is promised.
Accepted work is limited to the return items stated in writing; it does not promise a deduction, penalty result, or lower tax.
Tell Greg what you need help with
Share the basics through the contact form. Any response, availability, scope, and timing are confirmed only in writing; no call or consultation is promised.
Get StartedView PricingGreg has been quoted in Yahoo Finance and GOBankingRates on tax-filing topics. For freelancers and self-employed individuals, relevant return facts can include self-employment-tax computations, deduction substantiation, and estimated-tax payments.
Self-Employment Filing Checklist
Before submitting records, gather your 1099-NECs, business expense records, home office measurements, and estimated-tax payment receipts. The checklist helps organize client-supplied documents; it does not establish that the records are complete.
What's Included
- Schedule C business income and expense preparation
- Self-employment tax calculation (Schedule SE)
- Specified federal and NJ estimated-tax calculations (client tracks deadlines and transmits payments)
- Home office deduction analysis
- Vehicle and mileage tax classification from client-maintained logs
- Review of recorded business-expense classifications
- Health insurance premium deduction
- Tax-return treatment and contribution-limit reporting for client-established retirement accounts only
- Multi-state components when specifically accepted in the written scope
- Client-submission package for ordinary, non-examination correspondence only after separate written acceptance; Monaco CPA may contact the agency under a client-authorized power of attorney
How It Works
The written engagement and intake instructions describe the expected steps from first contact through the accepted work; timing and steps may vary with the agreed scope and client-supplied information.
- 1
Income & Expense Review
I review client-supplied 1099s, business income, and recorded expenses and document unresolved classification or substantiation questions.
- 2
Schedule C Preparation
Schedule C preparation reports business profit or loss and supported expense classifications from the records supplied; no completeness or tax result is guaranteed.
- 3
Estimated Tax Planning
Federal and NJ estimated-tax amounts are calculated from client-supplied facts. The client tracks deadlines and transmits payments; penalty avoidance is not promised.
- 4
Written-Scope Tax Review
Review client-maintained contribution and expense records for tax-return reporting and prepare specified federal and NJ estimated-tax calculations. The client tracks deadlines and transmits payments.
Frequently Asked Questions
What is self-employment tax?
Do I need to make quarterly estimated tax payments?
What home office deductions can I claim?
Can I deduct business expenses paid with personal cards?
Ready to Get Started?
Greg reviews written contact-form submissions. Any response, availability, scope, price, and timing are confirmed only in writing; submitting the form creates no engagement and promises no call, consultation, or outcome.
Use of this website does not create a CPA-client relationship.
Tax advice disclaimer: This material is for general educational information only and is not legal, tax, or accounting advice for your specific facts. A CPA-client relationship is formed only through a signed engagement letter.