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Taxes for Freelancers

Income mix: Schedule C / 1099-NEC income; mixed W-2 months; productized digital sales.

Common deduction themes

  • Home office (simplified or actual) when exclusive-use tests are met
  • Software, contractors, and marketing ordinary to the trade
  • Quarterly estimated taxes and retirement (SEP / solo 401(k))

Freelancers often under-save for April because client payments feel like “take-home.” Separate a tax reserve (federal income + SE + state) as soon as invoices clear, then true up with quarterly estimates.

QBI may deduct up to 20% of qualified profit if you stay under thresholds or clear wage/property tests. Home-office claims need exclusive and regular use—kitchen-table setups usually fail.

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