There’s one thing every freelancer and independent contractor learns fast—your 1099 income doesn’t come with a built-in tax safety net. No employer is handling the paperwork. No steady paycheck with taxes already withheld. It’s all on you.
And here’s the kicker: self-employment taxes hit harder than most people expect.
But don’t stress. With a little planning (and the right advice), you can keep more of your hard-earned money where it belongs—working for you.
At Estess CPA, we work with freelancers, independent contractors, and small business owners across the Greater New Orleans area, helping them stay organized and tax-ready all year long. Here’s what we recommend.
Know What You Owe: Understanding Self-Employment Taxes
Self-employment taxes are a reality for anyone earning 1099 income. Unlike W-2 employees, freelancers are responsible for both the employer and employee share of Social Security and Medicare taxes—a whopping 15.3 percent.
On top of that? You still owe federal and state income taxes.
Action Step:
Set aside at least 25 to 30 percent of every payment you receive. Open a separate savings account just for tax money. Treat it like it isn’t even yours. Future-you will be grateful.
Don’t Skip Quarterly Estimated Tax Payments
Waiting until tax season to pay your entire bill? That approach can backfire—big time. The IRS expects freelancers to make estimated payments four times a year.
Miss these deadlines, and you could face penalties.
Pro Tip:
Mark your calendar for these dates:
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April 15
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June 15
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September 15
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January 15
Not sure how much to pay? Estess CPA offers mid-year tax check-ins to help you calculate the right amount based on your income trends.
Maximize Deductions—The Right Way
Every deduction you qualify for is money back in your pocket. But there’s a fine line between smart deductions and red flags that could trigger an audit.
Common deductions for freelancers include:
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Home office expenses
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Internet and phone bills (the business-use portion)
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Business-related mileage
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Office supplies and software
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Health insurance premiums (if self-employed)
Need help identifying what counts as a qualified deduction?
Check out our Tax Services at Estess CPA. We’ll make sure you’re claiming what’s fair—without crossing the line.
Separate Business and Personal Finances
This one’s simple but powerful: open a dedicated business bank account. Use it only for your freelance income and expenses.
Not only does this make tax time easier, but it also gives you a clear picture of your cash flow year-round.
Plus, if you’re ever audited, clean recordkeeping could save you a world of trouble.
Keep Organized Records All Year Long
Forget the shoebox full of receipts. Cloud-based accounting tools like QuickBooks make it easier than ever to track income and expenses as they happen.
At Estess CPA, we’re a certified QuickBooks ProAdvisor. We don’t just help you use the software—we help you use it smarter.
Ready to take the stress out of bookkeeping?
Our Accounting Services can help you stay on top of your numbers without the headache.
Plan for Retirement—Even Without an Employer
Freelancers often overlook retirement savings. But here’s the truth: not having a traditional employer doesn’t mean you’re off the hook for retirement planning.
Consider options like:
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SEP IRA (Simplified Employee Pension)
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Solo 401(k)
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Simple IRA
These accounts not only help you save for the future—they can also lower your taxable income today.
Want guidance on choosing the right plan?
Our team at Estess CPA can walk you through the best fit for your freelance business.
Know When to Bring in a Pro
Freelancing gives you freedom—but with that freedom comes responsibility. If your 1099 income is growing, your deductions are getting complex, or you’re juggling multiple clients and projects, it might be time to stop DIY-ing your taxes.
At Estess CPA, we specialize in helping small business owners, freelancers, and independent contractors take control of their finances. Our goal is simple: keep you tax-ready, year-round.
Let’s Talk Strategy
Tax planning isn’t just for big corporations. Freelancers and contractors deserve proactive strategies, too.
If you’re ready to avoid tax surprises and keep more of what you earn, let’s connect. Schedule your free consultation with Estess CPA today.
Two Convenient Locations:
📍 Belle Chasse: (504) 433-5122
📍 Luling: (985) 785-1470
Estess CPA—where we treat you like family, and we think differently.
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