Yellow Business Services
Freelancer & Schedule C Specialists
We are a U.S.-based tax preparation firm specializing in Schedule C returns for freelancers, gig workers, and 1099 contractors. We calculate, prepare, and file your taxes for you — starting at $149.

The Ultimate Tax Guide for
Freelancers & Gig Workers

Don't let "Self-Employment Tax" wipe out your earnings. Learn how to track write-offs, pay quarterly estimates, and file your Schedule C without fear.

🚗 Uber/Lyft/DoorDash 💻 Tech Contractors 🎨 Creatives & Influencers

The 15.3% Shock

When you had a W-2 job, your employer paid half of your Social Security and Medicare taxes. Now that you are your own boss, you pay both halves.

This is called Self-Employment (SE) Tax. It is a flat 15.3% tax on your net profit, and it is in addition to your regular income tax.

The Math:
Profit: $10,000
SE Tax (15.3%): -$1,530
Income Tax (approx 12%): -$1,200
Total Tax: $2,730 (27%)

🚩 The "Zero Tax" Trap

Many new freelancers think: "I spent all the money I made, so I have no profit, so I owe no tax."

Wrong. Living expenses (rent, groceries, clothes) are NOT business deductions. You still owe tax on the income used to pay for your life.

See what IS deductible →

1099 Tax Calculator (2025 Est.)

Estimate your tax liability. Enter your Net Profit (Total Income minus Business Expenses).

Don’t want to deal with this?

Or skip the stress — we prepare and file your Schedule C for you.

✔ Have a Tax Pro File This For Me

Estimated Tax Liability

Net Business Profit: $0.00
Self-Employment Tax (15.3%): $0.00
Federal Income Tax (Est): $0.00
Total Estimated Tax: $0.00

*Estimates only. Does not include state tax. Results may vary based on deductions, credits, and IRS rules. Consult a pro before paying.

The Write-Off Library

Hover over any item to see the rules. If you spent money on these for work, you can deduct them to lower your tax.

🏠 Home Office
Simplified Method: $5/sq ft (max 300 sq ft). Regular Method: % of rent/utilities based on sq ft. Must be EXCLUSIVE use.
📱 Phone & Internet
Deduct the business % of your bill. Keep a log for one month to establish the percentage.
🖊️ Office Supplies
Paper, pens, toner, staplers, postage. 100% deductible.
💻 Hardware
Laptops, cameras, monitors. Under $2,500? Expense it all at once (De Minimis Safe Harbor).
🚗 Mileage
2024 Rate: 67 cents/mile. You need a log (date, miles, purpose). Commuting to a regular office is NOT deductible.
✈️ Business Travel
Airfare, hotels, taxis. Trip must be primarily for business.
🍔 Business Meals
50% deductible if meeting a client/prospect. Solo lunch at your desk is NOT deductible.
🅿️ Parking/Tolls
Deductible during business trips. Parking tickets/fines are NEVER deductible.
🎓 Education
Courses/books to IMPROVE existing skills. Learning a NEW career is not deductible.
⚖️ Legal/Pro Fees
Lawyers, accountants (like us!), consultants. 100% deductible.
📢 Advertising
FB ads, business cards, website hosting, domain names.
💳 Software
Adobe, Zoom, Quickbooks, Slack, ChatGPT Plus (if used for work).
🏥 Health Insurance
Deductible on Line 17 of Schedule 1 (Self-Employed Health Insurance). Not on Schedule C.
💰 Retirement
SEP-IRA or Solo 401k contributions reduce your taxable income.
🏦 Bank Fees
Monthly service fees for your BUSINESS bank account. ATM fees for business withdrawals.
🧾 Licenses
State business registration fees, professional certifications, union dues.

Quarterly Estimated Taxes

If you owe >$1,000, you must pay as you go. Missing these deadlines triggers an underpayment penalty.

APR
15
Q1 Payment Due
Covers income earned Jan 1 – Mar 31
JUN
15
Q2 Payment Due
Covers income earned Apr 1 – May 31
SEP
15
Q3 Payment Due
Covers income earned Jun 1 – Aug 31
JAN
15
Q4 Payment Due
Covers income earned Sep 1 – Dec 31

How to Pay?

  1. Go to IRS Direct Pay (online).
  2. Select reason: "Estimated Tax".
  3. Select form: "1040-ES".
  4. Pay via bank account (free).

*We calculate your vouchers for you in our "Complex" package.

🧾 Schedule C Specialists | 🇺🇸 Serving Clients Nationwide | 📞 Real Human Support | 🔒 Secure Document Upload

Industry-Specific Strategies

🚗 Drivers (Uber/Lyft)

Top Deduction: Mileage.
The Standard Mileage Rate (67¢/mile) usually beats actual expenses (gas/repairs). You must have a log.

Don't Forget: Car cleaning, passenger goodies (water/gum), phone mount, dashcam, Spotify (if playing for passengers).

🎨 Creatives & Influencers

Top Deduction: Equipment.
Cameras, lights, mics. Items under $2,500 can be expensed immediately.

Don't Forget: Props for shoots, makeup (only if stage-specific), agent fees, website hosting, Adobe Creative Cloud.

💻 Tech & Developers

Top Deduction: Home Office.
Tech workers often use a dedicated room. Calculate sq ft percentage of rent/mortgage.

Don't Forget: Server costs (AWS/Azure), GitHub Copilot, monitors, ergonomic chairs, standing desks.

Retirement for the Self-Employed

Freelancers don't get a 401(k) match, but they get access to "Super Accounts" that allow massive tax deductions.

Plan Type Contribution Limit (2024) Pros Cons
SEP IRA Up to $69,000 (25% of profit) Easy to set up. Flexible contributions. Cannot make "catch-up" contributions if older.
Solo 401(k) Up to $69,000 + Catch-up Higher limits at lower income. Can take loans. More paperwork (Form 5500) once balance > $250k.
Traditional IRA $7,000 Very simple. Low contribution limit.

🚩 IRS Audit Red Flags

Avoid these common mistakes that trigger scrutiny.

  • 100% Business Use of Car: Claiming you never use your only car for personal trips is suspicious. Claim 80-90% instead.
  • Consistent Losses: If you lose money for 3 years straight, the IRS may classify your work as a "Hobby" and disallow deductions.
  • High Meals & Travel: If your revenue is $50k but you spent $20k on travel, expect questions.
  • Rounding Numbers: Do not claim "$500" for supplies. Claim "$498.23". Round numbers look fake.

Freelancer FAQ

I didn't get a 1099. Do I still have to file?
Yes. If you earned more than $400 from self-employment, you must file, regardless of whether you received a form. The IRS tracks income via digital footprints.
Can I deduct my clothes/suits?
Generally, no. Unless it is a uniform or protective gear not suitable for everyday wear (e.g., scrubs, theatrical costume), clothing is not deductible.
Should I form an LLC?
For tax purposes, a single-member LLC is taxed exactly the same as a Sole Proprietor (Disregarded Entity). An LLC offers legal liability protection, not immediate tax savings, unless you elect S-Corp status (usually worth it at $80k+ profit).
What is the QBI Deduction?
The Qualified Business Income (QBI) deduction allows many freelancers to deduct 20% of their net profit from their taxable income tax-free. We calculate this for you automatically.

How Working With Us Works

1️⃣ Upload Your Info

Securely upload your 1099s, expense list, and prior-year return (if available). No office visits required.

2️⃣ We Prepare Your Return

A tax professional prepares your Schedule C, applies deductions, calculates QBI, and checks for errors.

3️⃣ Review & E-File

We review everything with you, answer questions, then electronically file your return with the IRS.

Most freelancer returns are completed in 3–5 business days.

Transparent Filing Pricing

Affordable rates for freelancers. No hidden fees.

These are tax preparation services, not software. A real tax professional prepares and files your return.

Basic Filing

Simple

$49

For W-2s & Very Simple Income

  • ✅ Federal 1040
  • ✅ Up to 2 W-2s / simple 1099s
  • ✅ Email Support
Start — $49
Most Popular

Standard

$89

Includes State Return

  • ✅ Federal 1040 + One State
  • ✅ Common Schedules (A/B/D)
  • ✅ Priority Review
Start — $89
BEST FOR FREELANCERS

Complex

From $149

Small Business & 1099-NEC

  • ✅ Schedule C Filing
  • ✅ Multi-state / Extra Schedules
  • ✅ Phone Consultation
Get Quote

Additional States: $35 each  |  Add-on Forms: $15 each

Hardship Pricing: Rates as low as $29. Just mention "financial hardship" when you contact us.

Start Your Freelance Return

Upload your 1099s and expense list. We'll handle the math.

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