If you earned income as a freelancer or gig worker in 2025, your tax filing responsibilities differ from traditional employees. Understanding your obligations ensures you pay the right amount and maximize deductions.
1. Track All Income
Freelancers must report all income, including 1099-NEC forms, PayPal payments, and cash earnings. Keeping accurate records prevents IRS notices.
2. Deduct Business Expenses
Eligible expenses reduce taxable income and may include:
- Home office costs
- Equipment and software
- Internet and phone bills used for business
- Travel and meals related to work
3. Self-Employment Taxes
Freelancers pay self-employment tax (15.3%) on net earnings. Proper calculation ensures compliance and helps avoid penalties.
4. Estimated Tax Payments
If you expect to owe $1,000 or more in taxes, quarterly estimated payments may be required. A CPA can calculate these payments accurately to avoid underpayment penalties.
5. Keep Detailed Records
Maintain receipts, invoices, and mileage logs. Good documentation supports deductions if audited.
At Tax Rescue CPA, we help freelancers and gig workers file confidently, reduce taxes, and avoid costly mistakes. Freelance or gig income? Let Tax Rescue CPA help you navigate 2025 taxes and maximize savings.
