Freelancer & Self-Employed Tax

Tax preparation and quarterly estimates for freelancers and independent contractors.

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5.0 · 9 Google ReviewsNJ CPA Firm Lic. #20CB00789800

Quick Answer

Self-employment tax is 15.3% on the first $184,500 of net earnings (2026) - 12.4% Social Security plus 2.9% Medicare - and you can deduct half of SE tax on Form 1040 Line 15.
The home office deduction allows $5/sq ft up to 300 sq ft ($1,500 max) using the simplified method, or actual expenses prorated by square footage - the space must be used regularly and exclusively for business.
NJ freelancers must make quarterly estimated payments using NJ-1040-ES if they expect to owe $400 or more in NJ income tax - underpayment interest is charged at 3% above the prime rate.
The QBI deduction (IRC §199A) allows eligible self-employed filers to deduct up to 20% of qualified business income - this is taken on the federal return but does not reduce NJ taxable income.
Health insurance premiums for self-employed individuals are deductible on Form 1040 Line 17 (not Schedule C) - this deduction reduces AGI but does not reduce self-employment tax.

Freelancer and self-employed tax services include Schedule C preparation, self-employment tax calculation, quarterly estimated tax payments (Form 1040-ES and NJ-1040-ES), home office deduction analysis, and business expense maximization. Monaco CPA helps NJ freelancers and 1099 contractors minimize their tax burden and stay compliant.

Freelancing and self-employment come with real tax complexity that W-2 employees never face: self-employment tax, quarterly estimated payments, Schedule C preparation, and a long list of business deductions you need to know about.

This service covers NJ freelancers, independent contractors, sole proprietors, and gig workers - preparing accurate returns, maximizing deductions, and setting up quarterly estimated taxes to avoid underpayment penalties.

Whether you're a designer, consultant, writer, tech contractor, or any other type of self-employed professional, I'll help you understand your tax obligations and keep more of what you earn.

Self-Employment Filing Checklist

Before your appointment, make sure you have your 1099-NECs, business expense records, home office measurements, and estimated tax payment receipts ready. Use the checklist so nothing gets missed.

View the self-employment filing checklist →

What's Included

Schedule C business income and expense preparation

Self-employment tax calculation (Schedule SE)

Quarterly estimated tax setup (1040-ES + NJ-1040-ES)

Home office deduction analysis

Vehicle and mileage deduction tracking

Business expense identification and maximization

Health insurance premium deduction

Retirement contribution strategy (SEP-IRA, Solo 401k)

Multi-state income reporting

IRS notice support

How It Works

Income & Expense Review

I review your 1099s, business income, and expenses to identify every deductible item.

Schedule C Preparation

Schedule C preparation covers accurate business profit/loss and all eligible deductions.

Estimated Tax Planning

Quarterly estimated tax payments calculated for federal and NJ to avoid underpayment penalties.

Year-Round Strategy

Plan retirement contributions, track deductible expenses, and prepare for next year.

Frequently Asked Questions

What is self-employment tax?

Self-employment tax is the 15.3% tax that covers Social Security (12.4%) and Medicare (2.9%) contributions that would otherwise be split with an employer. As a self-employed individual, you pay both halves - but you can deduct half of SE tax on your return.

Do I need to make quarterly estimated tax payments?

Generally, yes - if you expect to owe $1,000 or more in federal taxes after withholding, you're required to make quarterly estimated payments. NJ has a similar requirement. I calculate the correct amounts and set up a payment schedule for you.

What home office deductions can I claim?

If you use part of your home regularly and exclusively for business, you can deduct a portion of rent or mortgage interest, utilities, insurance, and depreciation. I use either the simplified method or actual expense method, whichever gives you a larger deduction.

Can I deduct business expenses paid with personal cards?

Yes - the key is that the expense must be ordinary and necessary for your business. I'll help you identify which expenses qualify and recommend separating business and personal finances going forward.

"I've been working with Greg Monaco, CPA for a few years now, and he's honestly saved me real money with both personal tax help and crypto tax stuff. He answers quickly, breaks things down in a way that's easy to understand, and you can tell he actually cares about doing right by you."

Dylan P.

These testimonials reflect individual client experiences and do not guarantee similar outcomes. Results vary based on each client's specific facts and circumstances. No client was compensated for providing a review. Tax savings and outcomes depend on individual tax situations and are not typical of all client experiences.

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