Self-Employed or 1099? Here’s What You Need to Know Before Filing

Self-Employed or 1099? Here’s What You Need to Know Before Filing

If you received a 1099 or earned income as a self-employed individual, your tax situation is very different from a traditional W-2 employee—and filing incorrectly can cost you.

1. You May Owe Self-Employment Tax

Self-employed individuals are responsible for both the employer and employee portions of Social Security and Medicare, which can significantly increase the tax owed if not planned for properly.

2. Deductions Can Significantly Lower What You Owe

Eligible business expenses—such as mileage, supplies, phone usage, internet, and home office costs—can reduce your taxable income when tracked and reported correctly.

3. Accurate Record-Keeping Is Essential

Missing receipts or incomplete records can lead to lost deductions, IRS notices, or audits. Good documentation protects you and maximizes your return.

4. Estimated Taxes Are Often Overlooked

Many self-employed taxpayers are caught off guard by balances due because quarterly estimated payments weren’t made throughout the year.

Need Help Filing the Right Way?

We specialize in helping self-employed and 1099 earners file accurately, claim every allowable deduction, and avoid costly surprises at tax time.