How to File Taxes When You’re Self-Employed?

Listen… if you’re self-employed, doing side gigs, running a small business, or freelancing your way through life, let me tell you something upfront:

The IRS does not care what you call yourself. If you earned money, you probably need to file.

A lot of folks get confused right here, so let me break it down the way I explain it to clients every single day.

Do You Need to File? Here’s the Rule of Thumb.

If you earn more than $400–$600 in net self-employment income, you are required to file a tax return.

Here’s what that means:

• If someone paid you $600 or more, they are required to issue you a 1099-NEC

• If you earned $400 or more after expenses, the IRS requires you to file

• Even if nobody sends you a 1099, your income is still taxable

I personally use $600 as the clean threshold, because that’s when most companies trigger a required 1099. But the IRS rule is actually $400 net — so whichever applies to you, file.

If you are:

✔ A 1099 contractor

✔ A rideshare driver

✔ A babysitter

✔ A hairstylist

✔ A content creator

✔ A side-hustler

✔ A small business owner

✔ A freelancer of ANY kind

…you are considered self-employed, period.

Self employed filing taxes

When Should You File?

You should file your taxes once you receive your 1099s (1099-NEC, 1099-K, etc.) or once you know you’ve moved past the $400 threshold.

But don’t wait until the last minute to get your paperwork together — self-employed tax returns take more preparation.

Gather Every Document You Can — Yes, Every One

Here’s where most people mess up: they forget their paperwork because everything is digital now.

If you get paid through:

• Cash App

• Venmo

• PayPal

• Stripe

• Square

• Shopify

• Zelle (yes, even Zelle if it’s business)

• QuickBooks

• Wave

• Fiverr / Upwork

…make sure you gather your 1099-K or transaction summary from each platform.

Anything that processed payments for you will typically issue a document. Keep ALL of it. The more organized you are, the more money you keep.

YES — You Can Write Things Off. Please Do.

People forget this part. They’re out here hustling, making money, and leaving write-offs on the table.

Write-offs help you reduce your taxable income — legally.

Common self-employed deductions you can take:

🔸 Home office expenses

(Home office build-out, furniture, paint, décor, repairs)

🔸 Auto expenses or mileage

(Choose one method — NOT both)

🔸 Phone & internet

(If you use it for business, it counts)

🔸 Software, apps & subscriptions

(QuickBooks, Canva, Adobe, scheduling tools, etc.)

🔸 Advertising & marketing

(Boosted posts, flyers, content creation, branding, etc.)

🔸 Business travel & meals

🔸 Supplies & equipment

🔸 Contract labor / 1099 help

🔸 Education & professional development

(Courses, certifications, webinars, coaching)

Keep receipts, bank statements, invoices — EVERYTHING.

You’ll File a Schedule C (Don’t Let That Scare You)

Most self-employed people file a Schedule C to report:

• Your income

• Your business expenses

• Your net profit

You do NOT need an LLC or EIN to file.

You can file under your Social Security Number as a sole proprietor.

But if you’re trying to:

• Keep business money separate

• Open a business bank account

• Look more “official”

• Protect your name

• Start building business credit

…then yes, go ahead and get an EIN and consider forming an LLC. Talk to a professional to choose the right structure.

Understanding Self-Employment Taxes (SE Tax)

This part shocks people every year.

When you’re self-employed, you pay something called Self-Employment Tax (SE tax) — which covers:

• Social Security

• Medicare

When you work for an employer, they pay half and you pay half. When you work for yourself? YOU are the employer and the employee.

So yes… you pay the full thing.

The SE tax rate is 15.3%.

This is in addition to income tax.

That’s why write-offs matter and why bookkeeping matters even more.

Final Word — You Don’t Have to Do This Alone

Filing self-employed taxes can feel confusing, overwhelming, and honestly stressful if this is your first time.

But this is literally what we do every single day.

At The Self-Employed Lab, we work ONLY with:

• Self-employed individuals

• Freelancers

• Side hustlers

• Small business owners

• Real estate professionals

We can help you:

✔ File correctly

✔ Maximize your write-offs

✔ Avoid IRS mistakes

✔ Get organized for next year

✔ Understand what you owe and why

If you need help, reach out. We are here to make this simple. Call 866-682-7773 or Sign-up

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