With the rise of the gig economy and self-employment, more individuals are navigating taxes without the structure of a traditional W-2 job. Whether you're a freelancer, rideshare driver, consultant, or online seller, you’re considered self-employed in the eyes of the IRS—and that comes with special rules and opportunities.

Here are some essential tax filing tips to help you stay compliant and maximize your deductions.

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🧾 1. Know What Counts as Self-Employment

If you earn income through side gigs, freelancing, or your own business, the IRS may consider you self-employed—even if it’s part-time or irregular.

You are generally self-employed if you:

• Operate as a sole proprietor or independent contractor

• Are a member of a partnership

• Are in business for yourself, including part-time work

🔗 IRS: Self-Employed Individuals Tax Center

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📅 2. Track Your Income and Expenses Year-Round

You’re responsible for reporting all income, even if you don’t receive a 1099 form. Keep detailed records of:

• Payments received

• Mileage logs

• Invoices

• Receipts for business-related purchases

Use software, a spreadsheet, or even a mobile app to stay organized.

🔗 IRS Recordkeeping for Small Business

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💵 3. Understand Estimated Quarterly Taxes

Unlike employees, self-employed individuals must pay estimated taxes four times a year. This includes:

• Income tax

• Self-employment tax (Social Security & Medicare)

Missing a payment can lead to penalties. Use Form 1040-ES to calculate and pay.

🔗 IRS: Estimated Taxes

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💼 4. Maximize Your Deductions

Self-employed and gig workers can deduct many business-related expenses, including:

• Home office (dedicated space)

• Business mileage

• Phone and internet (proportional use)

• Marketing costs

• Office supplies

• Software or subscriptions

These deductions reduce your taxable income, meaning a lower tax bill.

🔗 IRS: Schedule C Instructions

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📑 5. Use the Right Tax Forms

Here’s what you’ll typically file:

• Schedule C (Form 1040) – Profit or loss from business

• Schedule SE (Form 1040) – Self-employment tax

• Form 1099-NEC or 1099-K – Income received (if issued)

Even if you don’t get a 1099, you must still report all income.

🔗 IRS: Self-Employed Filing Requirements

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🛡️ Bonus Tip: Set Aside Money for Taxes

A good rule of thumb is to set aside 25–30% of your income for taxes to cover federal, state, and self-employment taxes. Opening a separate savings account for tax savings can help avoid surprises at tax time.

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🧠 Need Help Filing?

Texas Tax Heroes™ specializes in supporting self-employed individuals and gig workers. We’ll help you:

• Identify all eligible deductions

• Avoid penalties for estimated taxes

• Prepare and file your taxes accurately and on time

📞 Call us at 832-735-8880 or book online at www.texastaxheroes.com.