Independent contractor tax checklist
For freelancers, gig workers and anyone paid on a 1099: what to gather, the deductions people miss, and what is due on April 15, 2027 for your 2026 return.
What you need to do by April 15, 2027
File: Form 1040 with Schedule C (business income and expenses) and Schedule SE (self-employment tax) for 2026, and pay any balance due.
Or extend: file Form 4868 to push the filing deadline to October 15, 2027. An extension does not extend the time to pay, so estimate and pay what you owe by April 15, 2027 to limit penalties and interest.
Also due: your first estimated tax payment for 2027 income. It is separate from your 2026 balance. See all dates on our tax deadlines page.
1. Gather your income records
- Form 1099-NEC from each client that paid you for services. For payments made after 2025, the reporting threshold rose from $600 to $2,000 (IRS instructions), so smaller clients may not send one. All of your business income is taxable whether or not you get a form.
- Form 1099-K from payment apps and marketplaces, and 1099-MISC for rents, prizes or other income.
- Your own income records (invoices, bank deposits, platform earnings reports) to catch payments with no form.
- Records of the estimated tax payments you made for 2026: dates and amounts, federal and state.
- Last year’s return, if you are new to us or used different software.
Have W-2 wages, a home, kids or investments too? Our free tax document checklist builds a printable list for your whole return.
2. Check these 8 deductions freelancers miss
| Deduction | What it covers and the rule | Where it goes |
|---|---|---|
| Half of self-employment tax | Self-employment tax is 15.3% on 92.35% of net earnings (IRS). Half of it is deducted from income. | Schedule SE and Schedule 1 |
| Qualified business income (QBI) | Up to 20% of qualified business income for most sole proprietors. Limits apply above an income threshold the IRS adjusts each year (IRS). | Form 8995 or 8995-A |
| Home office | Space used regularly and exclusively for business. Simplified method: $5 per square foot up to 300 sq ft ($1,500), or actual expenses (IRS). | Schedule C (Form 8829 for actual expenses) |
| Business mileage | Trips to clients, job sites and supply runs (not your regular commute). For 2026 the IRS business rate is 72.5 cents a mile for January 1 – June 30 and 76 cents a mile for July 1 – December 31, so log the date of every trip. (IRS rates) | Schedule C, car and truck expenses |
| Health insurance premiums | Medical, dental and long-term care premiums for you, your spouse and dependents, for months you were not eligible for an employer-subsidized plan (yours or your spouse’s). | Schedule 1 (Form 7206) |
| Retirement contributions | SEP-IRA: up to 25% of compensation, which for a self-employed person works out to about 20% of net self-employment earnings after the deduction for half of SE tax, up to the annual dollar cap. A solo 401(k) allows employee deferrals plus employer contributions (SEP, solo 401(k)). | Schedule 1 |
| Software and subscriptions | Accounting, design, video-call and project tools you use for the business. Deduct only the business-use share. | Schedule C |
| Card and payment fees | Annual fees on a card used for the business, and payment processing fees (Stripe, Square, PayPal and similar). | Schedule C |
Keep receipts and a mileage log. Expenses must be ordinary and necessary for your business; personal use does not count.
3. Use the SEP-IRA deadline
A SEP-IRA is one of the few deductions you can still create after the year ends. Contributions for 2026 can be made up to your return due date, including extensions: April 15, 2027, or October 15, 2027 if you extend. You can open a SEP-IRA online at most large brokerages.
Example: with $80,000 of net profit on Schedule C, half of self-employment tax is about $5,650. That leaves about $74,350, and 20% of that is a maximum SEP contribution of about $14,870. In the 22% federal bracket, that would cut federal income tax by roughly $3,270. It does not reduce self-employment tax. Your own numbers depend on your income, bracket and state.
4. Set up 2027 estimated payments
Tax Day is a double deadline: your 2026 return and the first estimated payment for 2027 income.
| Payment | Income period | Due |
|---|---|---|
| Q1 | January 1 – March 31, 2027 | April 15, 2027 |
| Q2 | April 1 – May 31, 2027 | June 15, 2027 |
| Q3 | June 1 – August 31, 2027 | September 15, 2027 |
| Q4 | September 1 – December 31, 2027 | January 15, 2028 |
To avoid an underpayment penalty, pay at least 90% of your 2027 tax or 100% of your 2026 tax (110% if your 2026 adjusted gross income was over $150,000, or $75,000 if married filing separately). Pay with IRS Direct Pay, EFTPS or your IRS online account. A due date that falls on a weekend or legal holiday moves to the next business day (IRS estimated taxes).
5. Business credit cards and your taxes
- Card annual fees and processing fees for the business are deductible business expenses.
- Cash back and points earned on spending are generally treated as a rebate on what you bought, not as income. Some preparers reduce the related business expense by the rebate; we will handle it consistently on your return.
- Bonuses that do not require spending (for example, for opening an account) can be taxable and may come with a 1099-MISC.
- More detail on our sister site: are credit card rewards taxable? and business credit cards for freelancers.
Want us to file it?
Our Self-Employed / Gig price is $199 flat, with Schedule C, self-employment tax, vehicle and home office, the QBI deduction, one state return and an estimated-payment plan for next year. We file a free extension for clients if needed.
Questions
What deductions do independent contractors miss most often?
Commonly missed items are the deduction for half of self-employment tax, the qualified business income (QBI) deduction of up to 20% of qualified business income, the home office deduction, business mileage, self-employed health insurance premiums, retirement contributions such as a SEP-IRA, business software and subscriptions, and business card annual fees and payment processing fees.
When are 2026 taxes due for independent contractors?
April 15, 2027 is the deadline to file your 2026 return or request an extension with Form 4868, and to pay what you owe. An extension moves the filing deadline to October 15, 2027 but does not extend the time to pay. The first estimated tax payment for 2027 income is due the same day.
What is the self-employment tax rate?
The self-employment tax rate is 15.3%: 12.4% for Social Security and 2.9% for Medicare. It applies to 92.35% of your net earnings from self-employment, and the Social Security part stops at the annual wage base. You deduct half of the tax as an adjustment to income.
Do I still owe tax if a client did not send me a 1099-NEC?
Yes. All self-employment income is taxable whether or not you receive a form. For payments made after 2025, the IRS threshold for a business to issue Form 1099-NEC rose from $600 to $2,000, so you may receive fewer forms, but the income still goes on Schedule C.
Can I still make a SEP-IRA contribution for last year?
Yes. SEP-IRA contributions for 2026 can be made up to your return due date, including extensions: April 15, 2027, or October 15, 2027 if you file an extension.
General information, not individual tax advice. Facts were checked against irs.gov; IRS dollar limits change each year. Prefer to do it yourself? See free and low-cost filing options.