How to pay taxes as a freelancer: Important forms and deadlines

The appealing parts of freelancing—the freedom to choose your own projects and work from anywhere—come with unique tax obligations. 

By familiarizing yourself with those requirements, you can avoid a last-minute scramble each tax season. When you understand your self-employment tax obligations and deadlines up front, you can create a routine around taxes that feels more manageable. 

Find out how you can budget for taxes year-round while self-employed. Specifically, learn how taxes for freelancers work in the U.S., how much to set aside, when to pay, and what to track—so tax season never catches you off guard.

This guide to income taxes for freelancers is for informational purposes only and does not constitute legal or tax advice. Consult a qualified attorney or tax professional for guidance specific to your situation.

How to do taxes as a freelancer 

As a rule of thumb, if you make freelance income, you have to pay taxes on it. The Internal Revenue Service (IRS) treats freelancers as self-employed businesses, which means you have to pay two types of taxes: standard income tax and self-employment tax. 

Since you don’t have an employer who handles withholdings, you're responsible for calculating, reporting, and paying both of these taxes. To do so, you need to fill out IRS Form 1040 and Schedule C on an annual basis. The Schedule C is the standard form for reporting your freelance income and expenses as a sole proprietor or a single-member LLC. 

You also need to fill out Form 1040-ES and make estimated payments on a quarterly basis if required. The form includes a worksheet you can use to determine whether you’re required to make estimated tax payments, but self-employed people generally are.

Note: The IRS requires filing a tax return once your net earnings exceed $400. This includes all your self-employed income, even if clients didn’t issue you a 1099 (which they’re required to if they paid you $2,000 or more through the year). 

Quarterly estimated tax payments: What they are and when to pay

Quarterly estimated tax payments add more items to your to-do list throughout the year, but they allow you to keep up with what you owe. Beyond that, they’re required if you expect to owe at least $1,000 in self-employment taxes after withholding and refundable credits, so skipping them could lead to a penalty. You can avoid a penalty if you paid at least 90% of the taxes you owe for that year, or 100% (or 110% for those with an adjusted gross income higher than $150,000 in 2023) of the amount shown on your tax return the previous year.  

These are generally the deadlines you need to meet, though the dates can shift for weekends or holidays:

• January 15: The previous year’s Q4 quarterly estimated payment is due.
• April 15: The Q1 estimated payment and annual filing are due.
• June 15: The Q2 estimated payment is due.
• September 15: The Q3 estimated payment is due.
• October 15: This is the annual filing extension cutoff. 

In essence, quarterly estimated taxes are pay-as-you-go, where you estimate what you owe annually and divide it into four installments due in April, June, September, and January. Be aware that you may have to set aside more for state taxes, and that state deadlines may vary from the federal schedule. 

These are estimates, so if you slightly underpay or overpay your quarterly taxes, it likely won’t be an issue. When filing your annual income tax return, you’re able to adjust and either pay the remaining amount or receive a refund for the difference. 

How much should freelancers set aside for taxes?

You can plan ahead throughout the year and set aside money so you have enough to cover your taxes come April. It’s worth reserving a portion of your net earnings for the IRS on an ongoing basis. 

As mentioned, freelancers need to pay self-employment and income taxes. Self-employment taxes are 15.3% of your income for Social Security and Medicare. 92.35% of your net earnings are subject to the tax, and you can deduct one-half of the self-employment tax when figuring your adjusted gross income. The Social Security tax applies up to an annual maximum wage, which is $184,500 for earnings in 2026. Your income tax rate is 10% to 37%, depending on the tax bracket you fall into.

If you already know your tax bracket, you can add your income tax rate to the 15.3% self-employment tax for the percentage of your net earnings that you should set aside. 

For example, if you’re a single filer who makes $50,000 annually, your income tax bracket is 12%. Add 12% (income tax) + 15.3% (self-employment tax) = 27.3% overall tax rate. 

But if you’re not sure exactly how much you’re going to earn this year, which tax bracket applies, and the additional amount you need for state taxes, a tax professional can help you figure out how much to set aside. 

How to track self-employed income and expenses for tax season

Freelancers are eligible for unique tax deductions, which can reduce your self-employment tax burden. For example, you may be able to deduct expenses for your office supplies, business travel expenses from your self-employment taxes. You may be able to claim a self-employed health insurance deduction on your Schedule 1 form for a reduction to your income tax. 

Consistent documentation and the right tooling can help you report your income and expenses accurately. An all-in-one freelancer software solution with accounting features or integrations makes it easier to track your income and expenses. Block off time each month to ensure you’ve properly logged every invoice and receipt. 

Open up a business bank account separate from your personal bank account to make it easier to track and report your business activity for tax deductions on your Schedule C form. Reconcile income on your 1099 forms with your bank statements for accuracy.

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Important tax forms for freelancers

Filling out tax forms can feel less daunting if you know exactly what to file and when. These are the main IRS forms that freelancers typically encounter when fulfilling their self-employment tax responsibilities:

• Form 1040-ES: Use this quarterly tax form to report self-employment estimated tax payments. 
• Form 1099-NEC: This form reports payments from business clients for payments exceeding $2,000 in the 2026 tax year. You should receive one of the forms from each client.
• Form 1099-K: This form reports payments through online payment systems (like PayPal or Venmo). You should receive one of the forms from each payment system that processed your payments amounting to more than $20,000 across more than 200 transactions.
• Form 1040: Use this form to file your yearly income taxes and include attachments Schedule SE (to report your self-employment tax) and Schedule C.

To get your documents in order, head to the HoneyBook Tax Hub. You can pull income reports, view and download your 1099s, and access freelance tax resources to stay organized throughout the year. 

How HoneyBook helps you track self-employment income and expenses for tax season

While completing your taxes as a freelancer can feel intimidating, you can plan ahead to reduce some of the pressure during tax season. Look into the above forms and deadlines so you understand your obligations and set aside enough money. 

On HoneyBook, you can track your tax budgeting along with your contracts, invoices, and payments. If you connect your bank account, you can log business expenses so that you’re organized when it comes time to calculate your deductions. With your expenses in one place, you can keep track of what you’ve earned and what to set aside. 

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