Freelance IT Taxes Guide

What is this page about?

A guide to US taxes for IT freelancers, covering the self-employment tax (15.3% of net profit up to the Social Security wage base), federal and state income tax, and the quarterly estimated-payment schedule (April 15, June 15, September 15, January 15). It details deductible expenses (home office, equipment, software, professional development, fully deductible health insurance premiums, retirement contributions), retirement vehicles like the SEP-IRA, and when an S-Corp structure makes sense, showing how tracking deductions can make after-tax freelance income exceed employment at equivalent gross rates.

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Every accepted correction to this page is recorded with the exact change, so readers can see how the page improved over time.

1. 11 July 2026 · corrected by Emir Baycan

   1 flagged issue verified as a genuine calculation error: the article computed self-employment tax as $150,000 x 15.3% = $22,950, but the IRS SE tax base is 92.35% of net earnings, not the full amount, making the correct figure approximately $21,195 -- a real arithmetic/methodology error, not a sourcing issue.

   Before

   For an IT freelancer earning $150,000 in net business income: - Self-employment tax: $150,000 x 15.3% = $22,950 - Deduction for half of SE tax: $11,475 - Net SE tax burden: $22,950

   After

   For an IT freelancer earning $150,000 in net business income: - SE tax base (92.35% of net earnings, per IRS rules): $150,000 x 92.35% = $138,525 - Self-employment tax: $138,525 x 15.3% = $21,195 - Deduction for half of SE tax: $10,598 - Net SE tax burden: $21,195

   Why: Corrected a genuine calculation error: the article computed self-employment tax as $150,000 x 15.3% = $22,950, but the IRS SE tax base is 92.35% of net earnings, not the full amount. Applied the IRS-mandated adjustment, changing the result to approximately $21,195, and updated the dependent half-SE-tax deduction figure to match.

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