Freelancer Tax Calculator

Self-employment (SE) tax covers Social Security and Medicare for freelancers. You owe 15.3% on net self-employment income up to the Social Security wage base, then 2.9% above that. You can deduct half the SE tax from your adjusted gross income, which reduces your income tax. This calculator applies the IRS Schedule SE method. Consult a tax professional for complete accuracy.

Add your expected SE tax and federal income tax for the year, then divide by four. Pay by the IRS due dates: April 15, June 16, September 15, and January 15 of the following year. Underpaying by more than $1,000 or falling below 90% of the current-year liability (or 100% of last-year tax) triggers a penalty. Use IRS Form 1040-ES to submit payments.

Deductible business expenses include home office costs (direct method or simplified $5/sq ft), software subscriptions, equipment, professional development, health insurance premiums, and retirement contributions. The Qualified Business Income (QBI) deduction may further reduce taxable income by up to 20%. Keep receipts and records for all claimed expenses. A tax professional can maximize deductions for your situation.

Yes. Self-employed individuals can typically deduct 100% of health insurance premiums paid for themselves, their spouse, and dependents directly on Schedule 1 of Form 1040, reducing adjusted gross income. The deduction cannot exceed your net self-employment income. You cannot deduct premiums for months when you were eligible for an employer-subsidized plan. Verify eligibility with a tax advisor.