US Freelancer Tax Estimator
Enter estimated amounts for common self-employment deductions.
Estimation Results ()
| Item | Amount |
|---|---|
| Estimated Gross Income | $0.00 |
| Estimated Business Expenses | $0.00 |
| Estimated Net Earnings | $0.00 |
| Taxable Self-Employment Income (Net Earnings * 92.35%) | $0.00 |
| Estimated Self-Employment Tax | $0.00 |
| Self-Employment Tax Deduction (50% of SE Tax) | $0.00 |
| Estimated Adjusted Gross Income (AGI) | $0.00 |
| Selected Filing Status & Standard Deduction () | $0.00 |
| Estimated Taxable Income | $0.00 |
| Estimated Income Tax (Simplified) | $0.00 |
| Total Estimated Tax | $0.00 |
| Estimated Net Income After Tax | $0.00 |
Note: This is a simplified estimation tool for US federal taxes based on standard Self-Employment tax rules and simplified income tax brackets. It does not account for all potential deductions, credits, state taxes, or complex tax situations. Consult a qualified tax professional for personalized advice.
If you earn income as a freelancer, independent contractor, or through various gig economy jobs in the USA, you are typically considered self-employed for tax purposes. This means you’re responsible for both federal income tax and self-employment tax, and you generally need to make estimated payments throughout the year. Our free Freelancer Income Tax Estimator simplifies this process, helping you forecast your tax obligations.
This estimator accounts for the key components of a freelancer’s tax liability:
Gross Income: This is all the money you earn from your freelance work. Remember to include all income, even if you don’t receive a Form 1099-NEC from a client (which is usually issued for payments over $600).
Business Expenses and Deductions: One of the biggest advantages for freelancers is the ability to deduct ordinary and necessary business expenses. These reduce your taxable income. Common deductions include:
Home Office Deduction: If you use a dedicated space in your home exclusively and regularly for business.
Vehicle Expenses: Business mileage or actual costs for business-related driving.
Supplies and Equipment: Office supplies, computer software, tools, etc.
Phone and Internet: The business portion of your bills.
Professional Fees: Payments to accountants, lawyers, or consultants.
Business Insurance: Premiums for liability or professional insurance.
Health Insurance Premiums: If you’re self-employed and not eligible for an employer-sponsored plan.
Education and Training: Costs for courses or certifications that enhance your current business skills.
Travel and Meals: Business travel expenses and 50% of qualifying business meals.
Net Profit: Your gross income minus your deductible business expenses results in your net profit. This is the amount on which your taxes are primarily calculated.
Self-Employment Tax: This covers your Social Security and Medicare contributions. For freelancers, you pay both the employer and employee portions, which is currently 15.3% on your net earnings up to a certain threshold for Social Security, and 2.9% for Medicare on all net earnings. You can deduct one-half of your self-employment tax from your gross income, which helps lower your overall income tax.
Income Tax: Your remaining net profit, after accounting for deductions and half of your self-employment tax, is subject to federal income tax based on your individual tax bracket and filing status.
Estimated Quarterly Payments: Since no taxes are withheld from your freelance income, you’ll generally need to pay taxes quarterly if you expect to owe $1,000 or more in tax for the year. The calculator helps you estimate these payments to avoid underpayment penalties.
Our estimator guides you through inputting your projected income and expenses, providing an estimated breakdown of your total federal tax liability. This allows you to set aside funds, make timely estimated payments, and avoid surprises come tax time for your freelance business in the United States.