Work · Side income and self-employment

Self-employment taxes

Gig, freelance or side-hustle money with net earnings of $400 or more means you must file a return and pay self-employment tax: 15.3% (12.4% Social Security plus 2.9% Medicare), on top of regular income tax. Nobody withholds it, so set money aside from every payment, keep receipts to deduct expenses, and if you'll owe $1,000 or more, pay estimated tax by April 15, June 15, September 15 and January 15.

Moderate15 min to read; 10 min a week to keep recordsFree; penalties if you underpayChecked October 2, 2026

You'll need

A list of what you earned from each app or client
Receipts for work expenses
A separate savings account for taxes

What to know

Know if this is you. If you're an independent contractor (driving rides or deliveries, running errands, selling online, freelancing), you're self-employed. If you do gig work as an employee, your employer withholds tax instead. Not sure which? Ask, or use the IRS worker-status tool. Source: IRS²
Know the trigger. You must file a return and Schedule SE if your net earnings from self-employment were $400 or more, even for a side, part-time or temporary job. The rules apply at any age. Source: IRS²
Know the rate: 15.3%, which is 12.4% for Social Security and 2.9% for Medicare. It's similar to what's withheld from an employee's pay, except employees split it with their employer: 6.2% plus 1.45% each. Source: IRS¹ Self-employed, you pay both halves.
Remember it's on top of income tax. Estimated tax payments cover both your income tax and self-employment tax. Source: IRS³
Keep records all year. Save receipts for expenses, since deducting certain expenses lowers what you owe, and track every payment you receive. Source: IRS²
Report all of it. You must report all income, even if no business sends you a 1099. Source: IRS² Payment apps and online marketplaces send a Form 1099-K when your payments for goods or services top $20,000 in more than 200 transactions, but you may get one below that, and the income is taxable either way. Source: IRS⁴
Pay during the year. If you expect to owe $1,000 or more when you file, you generally need to make estimated payments. Source: IRS³ Use Form 1040-ES to figure them, and pay online, by mail or by phone. Source: IRS²
At tax time, file Form 1040 with Schedule C (profit or loss) and Schedule SE (self-employment tax). Source: IRS² Free options include IRS Free File and Volunteer Income Tax Assistance sites. Source: IRS²

Watch out Paying late costs you even if you end up with a refund: you may owe a penalty for not paying enough tax during the year, or for late estimated payments. Source: IRS³

Estimated tax due dates

If a date falls on a weekend or legal holiday, it moves to the next business day. Source: IRS²

Money earned	Payment due
January 1 to March 31	April 15
April 1 to May 31	June 15
June 1 to August 31	September 15
September 1 to December 31	January 15 of the next year

Your tax-season checklist

Forms 1099-K, 1099-NEC, 1099-MISC or W-2 from anyone who paid you; they should arrive by January 31 Source: IRS²
Your own records of payments no form covered Source: IRS²
Expense receipts, organized Source: IRS²
Records of estimated payments you made Source: IRS³

See it done

Video by IRSvideos Government

Estimated Tax Payments

Watch on YouTube: Estimated Tax Payments

2021 · Checked October 3, 2026

Video won't load at school or work? No problem. Everything you need is in the steps; the video's just a bonus. Watch it on YouTube later.

If it doesn't work

Have a regular job too? You may be able to skip estimated payments by having more withheld from your paycheck. Use the IRS Tax Withholding Estimator, then give your employer a new Form W-4. Source: IRS²
Forgot to report gig income on a return you already filed? Correct it with Form 1040-X. Source: IRS²
Got a 1099-K for money that wasn't income, like friends paying you back for rent or a meal, or birthday money? Those personal payments aren't taxable and shouldn't be on a 1099-K. Mark them as non-business in the app when you can. Source: IRS⁴

Good to know

The details, if you want them. Tap a line to open it.

A deduction that helps

You can deduct the employer-equivalent half of your self-employment tax when figuring adjusted gross income. That lowers income tax, not the self-employment tax itself. Source: IRS¹

Pay more often if it's easier

You can pay estimated tax weekly, every two weeks or monthly, as long as enough is paid by the end of each quarter. Source: IRS³

Possible credits

If you file Schedule C, you may qualify for the Earned Income Tax Credit; the IRS EITC Assistant checks. Source: IRS¹

The Social Security cap

The 12.4% Social Security part only applies to the first $184,500 of combined earnings in 2026. The Medicare part has no cap. Source: SSA⁶

Take it with you

Printable card Download card (PDF)

Sources

Internal Revenue Service Self-employment tax (Social Security and Medicare taxes)
Internal Revenue Service Manage taxes for your gig work
Internal Revenue Service Estimated taxes
Internal Revenue Service Understanding your Form 1099-K
Internal Revenue Service Topic no. 751, Social Security and Medicare withholding rates
Social Security Administration Contribution and benefit base

Lesson W8.2 · Last checked October 2, 2026 against the sources listed.

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