If you’re a freelancer, you’ve probably realized that tax season is a little like juggling flaming swords. But it doesn’t have to be that scary or unpredictable. Whether you’re a seasoned gig worker or a side hustle rookie, this guide will help you navigate the tax maze without losing your mind (or your cash).

1. Know your tax obligations

Freelancers are considered self-employed by the IRS, which means you’re your own boss (yay!) and your own payroll department (ugh!). Here’s what you need to keep in mind:

  • Self-employment tax: This covers Social Security and Medicare taxes, and in 2025, it’s still 15.3% of your net earnings. The good news? You can deduct the employer portion (half) when you calculate your income tax.
  • Quarterly taxes: The IRS wants its cut every three months when you’re self-employed. If you expect to owe $1,000 or more in taxes for the year, you’ll need to make estimated payments in April, June, September, and January.

2. Track every penny

Good record-keeping is the key to everything during tax season. Use apps like QuickBooks, Wave, or even a simple spreadsheet to keep tabs on:

  • Income: Track every payment you receive from clients, even if it’s a $5 gig on Fiverr.
  • Expenses: Deductible expenses (aka tax write-offs) are your ticket to lowering your tax bill. More on that below.

3. Deduct, deduct, deduct!

Freelancers have a buffet of tax deductions available. Here are the top ones to consider:

  • Home office: If you have a dedicated workspace at home, you can deduct part of your rent, utilities, and internet. Use the simplified method ($5 per square foot, up to 300 square feet) or calculate actual expenses.
  • Supplies: Pens, notebooks, software, and other tools you need for your work are fair game.
  • Travel and meals: Business-related travel and meals (50% deductible) are write-offs—just don’t try to expense that luxury resort or trip to Paris unless you’re actually working. (It’s hard to be self-employed in prison.)
  • Education: You can deduct online courses, books, and certifications relevant to your work.
  • Health insurance: If you’re paying for your own health insurance, you can deduct the premiums.

4. Save for taxes like a pro

Freelance income can be unpredictable, so save a percentage of every payment (around 25-30%) for taxes. Stick it in a high-yield savings account for extra cash flow while you’re at it.

5. Use tax software (or an accountant)

Unless you’re a tax whiz, invest in good tax software like TurboTax Self-Employed or H&R Block. These tools are designed for freelancers and help maximize deductions. If your finances are complicated, hire an accountant—trust us, it’s worth it.

6. Understand 1099s

You’ll receive a Form 1099-NEC from clients who paid you $600 or more. Didn’t get one? Don’t assume it’s free money—you’re still responsible for reporting all your income.

7. Don’t forget state taxes

Freelancers need to handle state income taxes, too. Rates vary by state, so make sure you’re setting aside enough for your local tax obligations.

8. Retirement savings = tax savings

Contributions to a SEP IRA, Solo 401(k), or traditional IRA not only boost your retirement fund but can also lower your taxable income.

9. Audit-proof your return

The IRS isn’t out to get you (probably), but it’s always good to be prepared. Keep receipts, invoices, and bank statements organized for at least three years. Use a scanner or app to store digital copies.

10. Stay on top of changes

Tax laws change all the time. Be on the lookout for:

  • Updates on deduction limits.
  • Potential changes to self-employment tax rules.
  • New tax credits or benefits for freelancers.

Brigit is not affiliated or partnered with any brands or companies mentioned in this article. This blog is for informational purposes, and should not be viewed as advice or opinion. This blog should not be viewed as a substitute for recommendations of a trained tax professional. It is recommended that you consult a professional before applying this material.