Freelancer & Self-Employed Tax
I prepare tax returns 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 on Schedule SE, line 13, and carried to Schedule 1, line 15.
- 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, line 17, figured on the worksheet in the Form 1040 instructions or on Form 7206 when one of its listed exceptions applies, subject to the earned-income limit and the rule disallowing any month when the taxpayer was eligible to participate in a subsidized health plan maintained by an employer of the taxpayer, the spouse, a dependent, or a child under age 27 at year-end. Any allowed deduction reduces AGI but does not reduce self-employment tax.
Once we agree on a written scope, I can prepare your Schedule C, calculate self-employment tax and the estimated payments named in the scope, and report the home-office and business expenses your records support. I don't promise savings, the lowest possible tax, a particular deduction or penalty result, or that your records are complete.
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 is for freelancers, independent contractors, sole proprietors, and gig workers. It covers the federal and permitted state returns we agree on in writing, prepared from the records and facts you supply. You track your deadlines and send your own payments.
W-2 wages and a consulting business: If you have a W-2 job and a consulting business, both go on the same return. Bring your Forms W-2, the business books or income and expense records, the Forms 1099 the business received, and any estimated payments made. Withholding from your wages can help cover tax on the business income; the estimated tax calculator takes both into account. Equity compensation and multistate work are considered case by case under a separate written engagement and may be referred to an independent specialist.
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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 you share any records, gather your 1099-NECs, business expense records, home office measurements, and estimated-tax payment receipts. The checklist helps you get organized. It can't tell you whether your 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
I prepare Schedule C to report your business profit or loss and the expenses your records support.
- 3
Estimated Tax Planning
I calculate your federal and NJ estimated-tax amounts from the facts you give me.
- 4
Tax Review
I review the contribution and expense records you keep for the return and prepare the federal and NJ estimated-tax calculations named in your scope.
What affects your quote
- The condition of your records
- The number of accounts and entities involved
- The tax years or periods covered
- The states involved
See published starting prices. Any offered scope is confirmed in writing before work starts.
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?
I read each inquiry myself and do my best to reply within a week. Sending the form creates no engagement. I do not promise an outcome. Any scope, price, availability, and timing are agreed in writing before work starts.
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.