How do I calculate my taxes for 2022 as an independent contractor? First time filing self-employment taxes

Yes, you'll need to file a Schedule C along with your regular 1040 for your self-employment income. The Schedule C is where you'll report all your business income and expenses. As a freelance graphic designer, you can definitely deduct business expenses like your computer and software subscriptions, along with any other ordinary and necessary business expenses (portion of internet, phone, home office if you qualify, etc). For self-employment tax, you'll pay 15.3% on your net profit (that's your income minus expenses), but you can deduct half of that on your 1040. The SE tax covers your Social Security and Medicare contributions. Since you didn't make quarterly estimated payments in 2022, you might face some penalties, but it's better to file accurately now than continue avoiding it. Use tax software like TurboTax Self-Employed or TaxAct to help guide you through the process - they make it much easier to track deductions.

After struggling with self-employment taxes for years, I finally found a tool that makes it SO much easier. I was overwhelmed with all my 1099s and trying to figure out what I could deduct as a freelancer. I tried https://taxr.ai and it literally saved me hours of stress. You upload your tax documents and it explains everything in plain English, plus tells you all the deductions you qualify for that you might miss otherwise. For self-employment specifically, it helped me understand how to properly calculate my quarterly payments (which you'll need to do for 2023!) and walked me through the whole Schedule C process. It even explained how much of my internet and cell phone bills I could legitimately deduct.

Update: I tried taxr.ai after posting my skeptical comment, and I have to admit it was actually pretty helpful! I've been doing gig work for 3 years and was always confused about what counts as a legitimate business expense. The tool analyzed my spending patterns and identified deductions I'd been missing - apparently I could've been deducting part of my cell phone bill all along since I use it for client calls. The best part was how it explained the self-employment tax calculation. Instead of just throwing numbers at me, it broke down exactly why I'm paying 15.3% and where that money goes. It also showed me how much I should be setting aside from each payment for taxes, which is helping me budget better this year. Not gonna lie, my tax return was way less stressful this time around!

If you're struggling to get answers about your self-employment taxes, good luck reaching the IRS directly. I spent WEEKS trying to get through to them about a self-employment tax question. After being on hold for 2+ hours multiple times only to get disconnected, I was ready to give up. Then I found https://claimyr.com which basically holds your place in the IRS phone queue and calls you when an agent is about to answer. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was super doubtful, but I was desperate about a specific Schedule C deduction question. They got me connected to an IRS agent in about 45 minutes (while I just went about my day), and I got a definitive answer about my home office deduction. Saved me so much frustration compared to my previous attempts.

I'm eating my words about Claimyr. After posting that skeptical comment, I decided to try it for myself since I've been trying to reach the IRS about a missing 1099 issue. Holy crap, it actually worked! I got connected to an IRS agent in about 50 minutes without having to stay glued to my phone the whole time. The agent was able to help me straighten out my self-employment tax situation from last year where I had income reported on both W-2 and 1099. Turns out I had been calculating my SE tax incorrectly and could have gotten in trouble if I hadn't fixed it. The relief of getting a real answer directly from the IRS was worth it after spending literally days trying to get through on my own. Just wanted to update since my initial reaction was pretty harsh.

For calculating self-employment taxes, don't forget about the Qualified Business Income deduction (Section 199A)! As a self-employed person, you might qualify for up to a 20% deduction on your qualified business income. This is separate from your regular business expense deductions on Schedule C. Also, if you didn't make estimated tax payments last year, look into the "safe harbor" provisions when you file. If your previous year's tax liability was covered through withholding (from your job before getting laid off), you might qualify for reduced penalties or even avoid them altogether depending on your situation.

has anyone used quickbooks self employed? im in same boat freelancing first time and behind on everything. was told it tracks mileage and expenses automatically + helps w quarterly estimated payments going forward?? not sure if worth $15/mo or whatevr they charge