Overtime pay is not tax-free under the new law, but a federal income tax deduction can remove part of it from your taxable income. Two limits decide almost everything: the deduction covers only the premium portion of overtime pay required by the Fair Labor Standards Act (FLSA), and only FLSA overtime-eligible employees can claim it. … Read more
How the IRS decides between a 1099 contractor and a W-2 employee, what changes for your taxes, and what to do if you think you were misclassified.
If you buy your own health insurance as a freelancer, the self-employed health insurance deduction is usually the single largest adjustment to income available to you. It lets you deduct premiums for medical, dental, vision and qualified long-term care coverage before adjusted gross income, so it lowers your income tax whether or not you itemize. … Read more
Open enrollment is the one window each year when most self-employed people in the U.S. can pick or change an individual health plan without needing a qualifying life event. For 2027 coverage, the federal Marketplace window runs November 1, 2026 through January 15, 2027. This guide covers the dates, what changed with subsidies, how premium … Read more
A business savings account is where a freelancer’s tax reserve, emergency fund and irregular-income buffer can earn interest instead of sitting in checking at 0%. “Free” in this guide means no monthly maintenance fee. It does not mean free of every charge: outgoing wires, cashier’s checks and dormant-account fees can still apply, and each account … Read more
A customer tip received through a delivery or rideshare app may qualify for the federal tips deduction. That does not make the whole payout tax-free, and it does not remove self-employment tax. Your occupation, reporting documents, business deductions, household income and filing status all matter. For tax years 2025 through 2028, eligible individuals can deduct … Read more
There is no IRS-approved percentage of every 1099 payment that works for everyone. A 25% or 30% transfer can be a temporary budgeting choice, but it can leave a high-income household short or tie up more cash than a lower-income business needs. Your tax depends on profit, other household income, filing status, deductions, credits, withholding … Read more
A business expense is not deductible just because you paid it while working. A delivery bag and a personal lunch bought during the same shift can have different tax treatment. So can a mileage-tracking subscription and a music subscription you mainly use yourself. This guide reviews 17 expense categories for U.S. self-employed gig workers and … Read more
An eligible single-member LLC can elect S corporation treatment for federal tax purposes without forming a new state-law corporation. The LLC remains an LLC under state law, but its federal income-tax reporting and the treatment of payments to its working owner change. The election is not a promise of tax savings or a stronger liability … Read more
If your U.S. freelance business hired a designer, virtual assistant or other independent contractor, you may need to file Form 1099-NEC and give the contractor a copy. For payments made in 2026, the general federal reporting threshold is $2,000 per payee, up from $600 for 2025. The payment method, the recipient’s tax status and the … Read more
