Smart Tax Tips for Freelancers to Keep More of What You Earn in 2026
So, you’re self-employed, working hard to grow your business, and now it’s tax season. If tax jargon makes your eyes glaze over, you’re not alone. Many freelancers find the tax world confusing and frustrating. The good news? With the right approach, you can reduce your tax burden, avoid surprises, and keep more of your money.
This guide to taxes is here to help self-employed individuals in and around Denver navigate their tax obligations confidently and correctly. Let’s break things down in plain English, with practical tax tips for freelancers that you can use today.
Understanding Taxes as a Self-Employed Freelancer
If you're a freelancer or independent contractor, you’re technically self-employed. That means:
You don’t get a W-2 from a traditional employer.
Clients pay you via Form 1099-MISC or Form 1099-NEC.
You're responsible for your own taxes.
Self-employment means you're both the boss and the employee. So, you must pay both sides of Medicare and Social Security taxes, collectively known as the self-employment tax.
What Is the Self-Employment Tax?
The self-employment tax rate is 15.3%, which includes:
12.4% for Social Security
2.9% for Medicare
You may also pay an additional Medicare tax if your income exceeds certain thresholds. This is separate from your regular income tax and applies to your net earnings from self-employment.
Track Your Income and Expenses Year-Round
One of the best tax tips for the self-employed is to treat taxes like a year-long job, not a once-a-year scramble. That means consistently tracking all income and business expenses.
Key Business Expense Categories to Track
Keeping solid records can help you take every deduction you're entitled to and lower your taxable income.
Here are common tax-deductible items many freelancers overlook:
Home office expenses (cleanly separated from personal use)
Internet and phone bills (business portion only)
Computer equipment, software, and subscriptions
Office supplies and printer ink
Business-related travel and mileage
Continuing education and professional development
Legal or accounting fees (including your tax preparer)
Don’t Miss the Home Office Deduction
If you work from home, the home office deduction can be a game-changer. You may qualify if:
You have a dedicated space used regularly and exclusively for business.
You run your self-employed business primarily from home.
This deduction allows you to write off things like mortgage interest, rent, utilities, repairs, and home insurance, based on the percentage of your home used for business.
Two common ways to calculate your home office deduction:
Simplified method: $5 per square foot, up to 300 square feet.
Actual expense method: A portion of actual home expenses.
Stay Ahead with Quarterly Estimated Taxes
As a self-employed individual, you don’t have taxes withheld automatically from your income. Instead, you’re required to pay estimated taxes throughout the year. Many freelancers miss this step, which can lead to penalties.
The IRS expects payments for the following dates in 2026:
Q1 (Jan 1 - Mar 31): Due April 15
Q2 (Apr 1 - May 31): Due June 17
Q3 (Jun 1 - Aug 31): Due September 16
Q4 (Sep 1 - Dec 31): Due January 15, 2025
These quarterly tax payments cover your income tax and self-employment tax. Use Form 1040-ES to calculate and submit estimated tax for individuals.
Maximize Your Deductions and Lower Taxable Income
You have more opportunities than employees to reduce your taxable income. Here are a few ways to lower your tax liability:
Contribute to a SEP-IRA or Solo 401(k): Save for retirement and get significant tax breaks.
Deduct your health insurance premiums, if applicable.
Use Section 179 depreciation deduction to deduct the cost of larger business assets like computers or equipment.
Write off business mileage if you use your vehicle for work-related tasks.
All of these strategies can help reduce your tax bill.
File Freelance Taxes the Right Way
When you file your taxes, you’ll do so using Form 1040, and attach Schedule C to report your business income and expenses. Be sure you're aware of these forms:
Form 1099-NEC: Reports income from clients
Schedule C: Reports profit or loss from business
Schedule SE: Calculates self-employment tax
Your income tax return will include both your regular income tax and self-employment tax. If you’ve made estimated tax payments, you'll subtract these from any taxes due.
Getting this part right is crucial to avoid an additional tax or missing a tax refund.
Common Mistakes Freelancers Should Avoid
Even savvy freelancers can fall into these traps:
Not separating personal and business finances
Skipping quarterly estimated taxes
Forgetting to deduct small but valid expenses
Misunderstanding the home office deduction
Leaving out income from Venmo or PayPal
Make tax time less stressful by staying organized and informed.
Do I Need a Tax Professional?
While DIY tax software can be helpful, working with a Denver tax accountant offers peace of mind. An experienced tax expert can:
Help you uncover every tax deduction you're eligible for
Ensure you're filing the right forms for your freelance tax situation
Strategize tax planning to prepare for the following tax year
Minimize your legal liability, especially if you're growing your small business
Talk to a professional, especially if your tax situation involves multiple income streams, 1099 forms, or setting up a limited liability company.
Need support in Denver? Reach out to a local Denver tax accountant who understands the unique challenges of freelancers.
Conclusion: Tackle Taxes with More Confidence This Year
Taxes for freelancers don’t have to be overwhelming. Whether you're brand new to the freelance world or you’ve been self-employed for years, getting smart about your tax obligations can help you avoid penalties, reduce your tax bill, and increase your tax savings.
Use these tax tips for freelancers to:
Track income and expenses consistently
Pay quarterly estimated taxes
Take full advantage of your tax breaks
Maximize your tax deduction opportunities
And when in doubt, consult a local tax professional who can help navigate the complexities of tax planning, tax preparation, and filing your individual income tax return confidently.
Make 2024 the year you take control of your self-employment taxes. Share this guide with other freelancers you know, or bookmark it to revisit come tax time. Every dollar counts - especially when you're in business for yourself.
