Tax help for freelancers who are tired of guessing
Working for yourself changes everything about taxes. Nobody withholds anything from your 1099 income, so you pay income tax and self-employment tax yourself, in quarterly installments, and settle up when you file. Most freelancers we meet aren’t trying to avoid taxes. They just never got a clear answer to “how much should I be setting aside?”
That is the tax help for freelancers we offer: a properly prepared return built around your business income, and a plan for the year ahead. We work with designers, developers, drivers, consultants, contractors, creators and other self-employed people in New Jersey, New York and online across the U.S.
Freelancer taxes, explained simply
Self-employment tax
On top of income tax, self-employed people pay self-employment tax: Social Security and Medicare that an employer would otherwise split with you. The rate is 15.3% (12.4% Social Security and 2.9% Medicare), and it applies once your net earnings from self-employment reach $400. You can deduct the employer-equivalent portion when calculating your income tax. Real deductions lower both taxes, which is why expense tracking matters so much.
Schedule C and your deductions
Your freelance income and expenses go on Schedule C. We match the income to your 1099 forms and payment platform records, and go through expenses with you: equipment, software, mileage, phone and internet, home office and more. If you have many transactions, simple monthly bookkeeping keeps everything categorized for you.
Quarterly estimated taxes
The IRS expects you to pay as you earn. If you expect to owe $1,000 or more, you generally make estimated tax payments over four periods during the year. We calculate them as part of tax planning and adjust them when your income changes, so April doesn’t bring a surprise bill or an underpayment penalty.
Individual returns that go beyond the basics
We focus on returns that need real attention, not quick one-page filings. Our individual tax preparation covers:
- Freelancers, 1099 contractors and gig workers with Schedule C and Schedule SE.
- People with income from more than one state, for example living in New Jersey and working in New York.
- ITIN holders and family members who need an ITIN, through our ITIN application service as an IRS-authorized Certifying Acceptance Agent (CAA).
- Newcomers to the U.S. whose first-year residency status is unclear, who may need a nonresident return on Form 1040-NR.
Behind on a recent year?
If you missed filing a recent year or received a letter from the IRS or New Jersey, it is usually easier to fix than it looks. Our back taxes and notices service files recent unfiled returns and responds to notices so the balance stops growing.
When freelancing becomes a business
As your income grows, the questions change: should you form an LLC, and does an S corporation election make sense? We look at real numbers with you before suggesting either, and if the answer is yes, we can handle the business formation, payroll and business return.
We give you a fixed price after a short review of your situation, agreed before any work starts. Book a free consultation before your next quarterly payment is due.
