File Cabinet for Tax Records

How do I file taxes as a freelancer or independent contractor?

You'll report income on Schedule C and pay self-employment tax (15.3%) on net earnings via Schedule SE. Deduct business expenses like home office, equipment, software, and mileage. Make quarterly estimated payments to avoid penalties. Tax software like TurboFax Self-Employed or FreeTaxUSA handles all these forms — budget $50-120 for the filing.

What are IRS Free File options?

IRS Free File offers two paths: Free File Fillable Forms (electronic versions of paper forms, no guidance, all incomes) and Free File software (guided programs from IRS partners, free federal filing if your AGI is $79,000 or below in 2024). The software partners include well-known brands. Some states have free state filing too. Access Free File only through IRS.gov to avoid being upsold to paid products.

What happens if I file my taxes late?

If you owe taxes and file late, you face a failure-to-file penalty of 5% of unpaid taxes per month, up to 25%. If you are due a refund, there is no penalty for filing late, though you have 3 years to claim your refund before it expires.

Can I file taxes for free?

Yes, the IRS Free File program allows taxpayers with AGI of $84,000 or less to file federal taxes free using commercial software. The IRS Free File Fillable Forms option is available to all taxpayers but requires knowledge of tax forms.