![]() ![]() You can use our self-employment tax calculator to find out how much you'll owe. As an independent contractor, you will pay all of the 15.3% of the self-employment tax. If you are an employee, you'd normally pay half of this rate. ![]() The self-employment tax boils down to a 15.3% rate (12.4% for Social Security and 2.9% for Medicare tax). If you are a freelancer, small-business owner, or any kind of contractor: you are eligible for the self-employment tax deduction. Ironically, to avoid self-employment taxes, you can deduct the fees from your taxes. If you are a 1099 self-employed worker, it is pretty much essential to claim this tax deduction. Here's a list of the best tax deductions available for self-employed workers: 1. You must withhold a certain percentage of all self-employment income so that you can pay self-employment taxes. Remember to keep clean records of your receipts in case you get audited by the IRS. If you can take a careful record of all of your business costs throughout the year then you will save yourself a lot of money when you file your tax return and a lot of hassle when tax season rolls around.īeing your own boss means you are subject to keeping track of your revenue, tax withholdings, and expenses throughout the year and reporting them to the IRS. Then, read on and discover deductions that you may not have ever thought of claiming as a 1099 contractor! The 21 Best 1099 Tax Deductions for Self Employed Contractors In fact, our users typically save $5,600 from their tax bill at the end of the year with our software. Our app will automatically organize and scan your tax receipts so you can save the most money during tax time. Note: First, check out our 1099 expense tracker for freelancers which makes tracking these tax deductions a whole lot easier. To make the process of hunting for tax deductions more simple, we put together our list of the best ones for independent contractors and freelancers. If you are a contractor, the odds are good that you want to claim as many business expenses as possible. It can be overwhelming to find the right 1099 deductions to claim that will reduce your federal income tax bill. With the freedom to organize your business comes the challenge of tracking expenses and deductions. ![]()
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