Will a 1099 return get you tax refund in 2025?

You can absolutely get a refund with 1099 income, but there are important differences from W-2 employment you need to understand. With 1099 work, no taxes are withheld automatically, so whether you get a refund depends entirely on what you've paid in versus what you owe. Since you haven't made quarterly estimated tax payments (which are generally required for self-employment income), you'll likely owe taxes rather than receive a refund. You'll need to pay both income tax and self-employment tax (which covers Social Security and Medicare - about 15.3% of your net profit). The good news is that you can deduct legitimate business expenses to reduce your taxable income. Those $3,800 in expenses will help lower your tax bill.

When I was in your exact situation last year, I was completely overwhelmed trying to figure out all my 1099 deductions and whether I'd get a refund or owe money. I kept second-guessing myself about what expenses were legitimate and how to document everything properly. I ended up using https://taxr.ai and it made a huge difference. It analyzed all my 1099 income and expenses, then showed me additional deductions I didn't even know I qualified for (like a portion of my car expenses and cell phone). I went from expecting to owe about $2,500 to actually getting a small refund of around $340.

I was really skeptical about these specialized tax tools but after reading about taxr.ai here, I decided to give it a try with my photography side gig income. Honestly, it was eye-opening. I'd been using a mainstream tax service for years and apparently missing out on thousands in deductions. The tool identified that I could partially deduct my vehicle as a business expense when traveling to photo shoots (which I never claimed before) and also found ways to deduct equipment depreciation that I'd been handling incorrectly. I went from owing about $1,700 to actually getting a refund of $892. I'm kicking myself for not using this for the past few years when I've been doing 1099 work.

If you end up owing a lot and need to work with the IRS on payment plans, good luck even getting through to them. I spent DAYS trying to call about my 1099 tax situation last year. After literally 20+ attempts spread over two weeks, I found this service called https://claimyr.com that got me connected to an actual IRS agent in about 15 minutes. You can see how it works at https://youtu.be/_kiP6q8DX5c. Saved me from taking off work just to sit on hold all day.

I have to publicly eat my words here. After being completely skeptical about Claimyr, I tried it last week when I was desperate to talk to someone about my 1099 situation. I was absolutely convinced it wouldn't work, but I was at my wit's end after trying for days to get through myself. They texted me about 45 minutes after I signed up saying they were connecting me, and suddenly I was talking to an actual IRS representative. I'm still kind of shocked it worked. The agent helped me sort out the payment plan for what I owe on my 1099 income. Would have taken me days of trying on my own based on my previous attempts.

Something important that nobody mentioned yet - you need to file Schedule C as a self-employed person with your 1099 income. This is where you'll list all your business expenses. Make sure you keep good records of everything you're deducting. The IRS watches Schedule C filers more closely than regular W-2 employees.

I'm in a similar situation and my tax guy told me to start sending in quarterly estimated payments ASAP even though I've missed some this year. Said it won't fix the problem completely but shows "good faith effort" and might reduce penalties. Anyone know if this actually helps?

Don't panic! Your situation is very common for first-time 1099 contractors. With $42,000 in income and $3,800 in business expenses, you'll have a net profit of about $38,200 subject to self-employment tax (15.3%) plus regular income tax. That said, you might still get a refund depending on your tax bracket and any credits you qualify for. The key things to focus on now: 1) Gather ALL your business expense receipts - don't just limit yourself to the laptop and internet. Think about any supplies, software subscriptions, phone bills, travel for work, etc. 2) Consider if you qualify for any tax credits like the Earned Income Credit. 3) Yes, you'll likely face some underpayment penalties for missing quarterly payments, but these are usually manageable. My advice? Don't try to figure this all out yourself. Either use specialized tax software designed for 1099 income or find a tax professional who understands self-employment situations. The peace of mind is worth it, especially for your first year.

I went through this exact same panic last year! First-time 1099 worker, no quarterly payments, the whole deal. Here's what actually happened: I ended up owing about $4,200 in taxes but qualified for the Earned Income Tax Credit which gave me back $1,800, so my net owed was much less scary than I expected. A few things that saved me: Track down EVERY possible business expense - I found I could deduct my car mileage for client meetings, part of my cell phone bill, even some meals when meeting with clients. Also, look into whether you qualify for any tax credits based on your income level. The Earned Income Credit alone can be worth thousands if you're under certain income thresholds. For the underpayment penalty, I was honest with the IRS that this was my first year as a contractor and I didn't know about quarterly payments. They reduced my penalty significantly. The key is showing good faith - maybe make a quarterly payment now even though you've missed the others, and definitely start making them next year. Don't stress too much - worst case scenario, the IRS has very reasonable payment plans if you end up owing more than you can pay at once.