Becoming a freelancer can be exciting, allowing you to set your own schedule and rates and also choose who you want to work with.

Essentially, you become your own boss.

Accompanying this new way of working, however, are tasks you may not have been responsible for before, including tracking, filing, and paying your own taxes.

As a freelancer, you’re obligated to pay not only on the federal and state level but also what’s known as self-employment taxes.

Whether you pursue a freelance marketing career or any one of the various other freelance opportunities today, you need to be aware of how to prepare for and pay all of these required taxes.

So, if you are just now starting out as a freelancer or have been at it a few years but still not clear on what requirements are in place, here are the things you need to know about freelancing taxes.

Freelancing Taxes: How to File Taxes as a Freelancer

As a freelancer, you have more than one option when it comes to how to file your taxes. 

You can calculate and file them on your own, use an online tax filing software, rely on a combination of those two, or seek the help of a professional tax preparer.

Essentially, you’ll need to do the following in preparation and execution.

1. Compile all 1099s from clients and your personal accounting records

Any client who paid out in excess of $600 to you for your freelance services should provide you with a 1099-MISC form. 

For payments made through third-party services like PayPal or Square, you should also receive a 1099-K. You may need to print this out yourself from the merchant’s dashboard.

Your personal accounting records should contain receipts (paper and online order receipts). 

They should also include any income you received throughout the tax year that does not show on a 1099-MISC or 1099-K.

2. Determine your net income with Schedule C

With your 1099s and accounting records in hand, determine your net income with the help of Schedule C. 

This form takes you through the process of adding up total income, entering all expenses, and calculating your taxable net income.

Sometimes, in the rush to meet deadlines or juggle multiple clients, it’s surprisingly easy to lose track of an expense here or a small deposit there. If you’re lucky, your bookkeeping tool will gently guilt-trip you with reminders, but if not, well, things can go missing. Double-checking the numbers before you fill out Schedule C saves time and prevents awkward puzzles when the tax bill doesn’t quite add up. I’ve had years where a crumpled coffee receipt made the difference between owing and getting a tiny refund, which is a strange win, but I’ll take it.

Also, don’t forget to factor in any business-related purchases that might not come through obvious channels—software subscriptions, mileage for client meetings, or even that “essential” noise-cancelling headset you grabbed off an Instagram ad one late night. Small things do add up. If you’re ever unsure whether something counts as a deductible expense, jot it down anyway and come back to it when you’re not three coffees deep and staring at spreadsheets. Better to have the backup than scramble later or leave money on the table.

One thing most people don’t talk about until it’s too late: late fees and interest. If you miss a payment, even by a couple of weeks, the IRS charges interest (currently at 8% in 2025—yep, it went up). Not to be dramatic about it, but those little lapses can snowball, especially if you’re dealing with several clients and, let’s be honest, someone always “forgets” to send your payment on time. Boring as it sounds, setting up calendar reminders for tax payments is just practical muscle memory for freelancers after the first or second oopsie.

And while everyone likes to believe their system is airtight, sometimes something genuinely slips through the cracks. I’ve seen people realize deep into April they forgot an entire PayPal account used for one random gig last summer. If you find yourself in that spot—don’t panic, but don’t ignore it, either. Amending a return isn’t as scary as you might think, but dragging your feet is the fast lane to bigger headaches. If it helps, keep a checklist (old-fashioned or digital, whatever you’ll look at) so even one-off projects land in your final tally.

3. Calculate your self-employment tax

Complete form Schedule SE to determine what your self-employment tax will be.

4. Complete and file your IRS Form 1040

You will use the information determined in the previous steps to help complete your Form 1040. Once completed, you can file it through your tax software, directly to the IRS online, by way of your tax preparer, or print and mail.

5. File and pay Quarterly Estimated Tax Payments

If applicable, use Form 1040-ES to calculate your quarterly estimated tax payments for the coming year and submit the first payment.

6. Confirm any State. Local, or Sales Tax Requirements

In addition to filing your federal income tax forms, confirm whether or not you also owe state, local, and sales taxes.

Each state and local location differs in this aspect, and if you do owe anything, pay this now as well. Here are a few hints to help:

• Most states maintain their own income taxes for freelancers, so check with your state tax department for confirmation and forms to file.
• Approximately 5,000 counties, cities, and other jurisdictions impose separate income taxes. (e.g., New York City). Check the local government website for guidance and related forms.
• In some areas, a sales tax is required for freelance businesses. Once again, check your local government website for confirmation.

You may also be interested in these articles:

• 9 of the Best Freelance Websites for Jobs
• Are You a Freelance Writer with Impostor Syndrome? Here’s What You Can Do
• 9 Finance Tips for Freelancers to Help You Reach Your Goals

Wrap Up

Being your own boss brings with it tasks you might not expect, such as paying your own taxes. 

Yet, preparing and paying freelancing taxes doesn’t have to be difficult or stressful. The more you as a freelancer know, and the more you prepare, the less stress arrives when it is time to file.

The best way to plan is to make it a habit to document every expense, keep every receipt, and also track all forms of income coming in so you can fill out the required forms in less time.