Freelancer Tax Basics: What Every 1099 Worker Needs to Know

Taxes are a little scarier when you don’t have an employer handling them for you. As a freelancer, here are the essentials:

• You’re responsible for estimated quarterly taxes (April, June, September, January).

• Self-employment tax covers Social Security + Medicare (about 15.3% of net income).

• Deductions matter: home office, equipment, health insurance, and more can lower your tax bill.

• Track income + expenses year-round so you’re not panicking at tax time.

The biggest mistake new freelancers make? Spending every dollar they earn without setting aside money for taxes. A good rule of thumb: save 25–30% of each payment into a separate “tax savings” account.