The Complete Guide To Filing Self-Employment Taxes

If you're self-employed, you're responsible for filing and paying your taxes on time. Here's what you need to know about self-employment taxes before filing your next return.

WRITTEN & RESEARCHED BY
Erica Seppala
Editor & Senior Staff Writer

Last updated onUpdated July 14, 2026

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Key Takeaways

Self-employed workers are responsible for paying both income tax and self-employment tax, and many must make quarterly estimated tax payments.
Keeping accurate records of your income and business expenses can make filing easier and help maximize eligible tax deductions.
Understanding tax deadlines, required forms, and payment rules can help you avoid penalties and stay compliant with IRS requirements.

Filing self-employment taxes can feel overwhelming, but it’s much easier when you know what to expect. This guide explains the taxes you’ll need to pay, key filing deadlines, how to file your return, and when to make estimated quarterly tax payments.

Table of Contents

What Are Self-Employment Taxes?
Who Has To Pay Self-Employment Taxes?
Types Of Self-Employment Taxes
Self-Employment Tax Due Dates
How To Make Estimated Quarterly Tax Payments
How To File Self-Employment Taxes Step-By-Step
Additional Self-Employment Tax Tips
The Bottom Line On Filing Self-Employment Taxes

What Are Self-Employment Taxes?

If you’re self-employed, you’re responsible for paying your own federal, state (if applicable), and self-employment taxes. Unlike traditional employees, taxes aren’t automatically withheld from your income.

Instead, you’ll report your income and expenses on your tax return and pay any taxes you owe. Depending on how much you expect to owe, you may also need to make quarterly estimated tax payments throughout the year.

Who Has To Pay Self-Employment Taxes?

Many types of self-employed workers are responsible for paying self-employment taxes, including:

Freelancers
Independent contractors
Sole proprietors
Gig workers

No matter how you’re paid — whether through a freelancing platform, payment app, your own website, or paper check — you’ll generally need to report that income on your tax return. If your net earnings from self-employment are $400 or more for the year, you’ll typically also owe self-employment tax.

Types Of Self-Employment Taxes

Self-employed workers may be responsible for paying several types of taxes. Here’s an overview of the most common ones.

Self-Employment Tax

Self-employment tax covers Social Security and Medicare taxes. You generally must pay it if your net earnings from self-employment are $400 or more for the year (or $108.28 from a church or qualified church-controlled organization).

The self-employment tax rate is 15.3%, including:

12.4% for Social Security
2.9% for Medicare

When you file your federal tax return, you’ll generally report self-employment tax on Schedule SE and file it with Form 1040. You can also deduct the employer-equivalent portion of your self-employment tax when calculating your adjusted gross income.

Federal Income Tax

Self-employed workers also pay federal income tax on their taxable income. The amount you owe depends on your filing status and tax bracket.

Federal income tax is reported on Form 1040. If you haven’t paid enough tax throughout the year, you’ll owe the IRS when you file your return. If you’ve overpaid, you may receive a refund.

State Income Tax

If your state has an income tax, you’ll generally file a separate state tax return in addition to your federal return.

State income tax rates and filing requirements vary by state. Depending on where you live and earn income, you may need to file returns in more than one state.

Self-Employment Tax Due Dates

Tax	Due Date	Tax Form Used
Annual Federal Tax Return	April 15*	Form 1040, Schedule C, and Schedule SE (if required)
Income Tax Extension	October 15*	Form 4868

*If the due date falls on a weekend or holiday, the deadline is generally the next business day.

Self-employed individuals generally must file an annual federal tax return by April 15. If you need more time to file, you can request a six-month extension by submitting Form 4868.

Keep in mind that an extension only gives you more time to file — not more time to pay. Any taxes you owe are generally still due by the April filing deadline. If you don’t pay on time, the IRS may charge interest and penalties.

If you can’t pay your full tax bill, the IRS offers payment plans that let eligible taxpayers pay over time.

Estimated Quarterly Tax Due Dates

Estimated Payment	Due Date	Tax Form Used
Q1 Taxes	April 15	Form 1040-ES
Q2 Taxes	June 15	Form 1040-ES
Q3 Taxes	September 15	Form 1040-ES
Q4 Taxes	January 15 (of the following year)	Form 1040-ES

Self-employed individuals who expect to owe $1,000 or more in taxes after withholding and credits generally must make estimated quarterly tax payments using Form 1040-ES.

As with annual tax returns, quarterly payment deadlines that fall on a weekend or holiday are generally moved to the next business day.

How To Make Estimated Quarterly Tax Payments

If you’re required to make estimated tax payments, the process is fairly straightforward. Here’s how to estimate what you owe and submit your payments.

Step 1: Estimate Your Tax Liability

Estimate your income for the year using your current earnings, last year’s tax return, or both. Then estimate any business deductions and credits you expect to claim.

You can use IRS Form 1040-ES to estimate both your federal income tax and self-employment tax. The worksheet walks you through the calculation and helps determine how much you should pay each quarter.

Once you’ve estimated your total annual tax liability, divide it into four quarterly payments unless your income varies significantly throughout the year.

Step 2: Set Money Aside For Taxes

Many self-employed workers regularly set aside a portion of each payment they receive to help cover their tax bill. A common rule of thumb is to set aside 25% to 30% of your income, although the right amount depends on your tax situation.

Keeping these funds in a separate savings account can make it easier to pay your quarterly taxes when they’re due.

Step 3: Submit 1040-ES & Your Payment

Complete the Form 1040-ES worksheet and submit your estimated payment by the applicable quarterly due date.

The IRS offers several payment options, including:

IRS Direct Pay
Electronic Federal Tax Payment System (EFTPS)
Debit or credit card
Check or money order

Instructions for filing and payment are included with Form 1040-ES.

How To File Self-Employment Taxes Step-By-Step

Filing self-employment taxes is much easier when you gather your records ahead of time. Follow these five steps to prepare and file your return.

Step 1: Gather Your Income Records

Collect all records showing your self-employment income, including Forms 1099-NEC, 1099-K, 1099-MISC (if applicable), invoices, payment processor statements, and accounting records.

Remember, you’re required to report all taxable business income, even if you don’t receive a tax form.

Step 2: Calculate Your Business Deductions

Gather records for any deductible business expenses, such as:

Home office expenses
Office supplies
Business mileage
Equipment and software
Business insurance
The deductible portion of your self-employment tax

Claiming eligible deductions can help reduce your taxable income. Be sure to review all available business tax deductions before filing.

Step 3: Complete Your Tax Forms

Most self-employed individuals will need to complete:

Form 1040 to file their federal income tax return
Schedule C to report business income and expenses
Schedule SE to calculate self-employment tax (if required)

Depending on your situation, you may also need to file additional schedules or forms.

Step 4: File Your Tax Return

You can file electronically using tax software or work with a tax professional to prepare and file your return.

For most taxpayers, e-filing is the fastest, easiest, and most secure option.

Step 5: Pay Any Taxes You Owe

If you still owe taxes after accounting for estimated payments and withholding, you’ll generally need to pay your balance by the filing deadline, even if you’ve requested an extension.

The IRS offers several payment options, including Direct Pay, EFTPS, debit or credit card, and check or money order.

Additional Self-Employment Tax Tips

Filing self-employment taxes is much easier when you stay organized throughout the year. These tips can help save time and reduce stress at tax time.

Track Income & Expenses

Keeping accurate records year-round makes filing your tax return much easier. Accounting software can help automate tasks such as:

Tracking income and expenses
Syncing bank and credit card transactions
Categorizing expenses
Scanning and storing receipts
Creating invoices and estimates

Keep Organized Records

Save records that support your income and deductions, including invoices, receipts, mileage logs, and other business documents.

To stay organized, consider:

Filing paper records in a safe place
Storing digital copies in the cloud
Using accounting software to scan and organize receipts

Consider Hiring A Tax Professional

If you’re filing self-employment taxes for the first time or have a more complicated tax situation, working with a tax professional can be worthwhile.

A tax professional can help you identify eligible deductions, prepare the correct forms, and reduce the risk of filing errors that could lead to penalties or interest.

The Bottom Line On Filing Self-Employment Taxes

Staying organized throughout the year can make filing self-employment taxes much less stressful. By tracking your income, saving for taxes, and keeping accurate records, you’ll be better prepared when it’s time to file.

You can also check out our guide to filing taxes for the first time for additional tax tips.

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Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick

Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.

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