Stay on top of your quarterly IRS self-employment taxes, track legal business write-offs, and project your net take-home income.
Unlike salaried employees, freelancers do not have taxes automatically withheld from their earnings. You are responsible for both the employee and employer portions of Social Security and Medicare taxes (Self-Employment Contribution Act, or SECA), usually paid quarterly.
Estimate the standard 15.3% SECA tax applied to 92.35% of your net self-employed earnings.
Deduct home office space, internet bills, software subscriptions, hardware purchases, and travel costs.
Estimate state, federal, and local income taxes to know exactly how much net cash you keep.
Avoid underpayment penalties by projecting and scheduling your quarterly estimated tax payments.
Calculate your overall net income, tax rate brackets, and disposable earnings by country or state.
Input your annual business expenses to determine your eligible write-offs and lower your taxable income.
Any expense that is both "ordinary and necessary" for your trade or business can be written off. This includes laptops, website hosting, platform fees, professional education, and co-working memberships.
In the United States, quarterly estimated tax deadlines are typically April 15, June 15, September 15, and January 15 of the following year.