Self-Employment Tax Guide for US Freelancers — Quarterly Payments, Deductions, and S-Corp Election

## The self-employment tax burden Employees pay 7.65% FICA (Social Security + Medicare) and employers match 7.65%. Freelancers pay both sides: 15.3% on the first $168,600 (2024), then 2.9% above that. This is on top of regular income tax. **Example:** $100,000 freelance income - SE tax: $14,130 (15.3% × 92.35%) - SE tax deduction: -$7,065 (half of SE tax) - Federal income tax on ~$85,000: ~$15,000 (22% bracket) - **Total: ~$29,000 in taxes on $100,000** ## Quarterly estimated payments Due dates: April 15, June 17, September 16, January 15. Pay via IRS Direct Pay or EFTPS. Safe harbour: pay 100% of prior year tax or 90% of current year tax to avoid underpayment penalties. ## Home office deduction If you have a dedicated space used regularly and exclusively for business, deduct either: - Simplified method: $5 per sq ft, up to 300 sq ft ($1,500 max) - Regular method: actual expenses pro-rated by % of home used for business ## S-Corp election: saves SE tax at higher incomes At ~$80,000+ net income, forming an S-Corp and paying yourself a "reasonable salary" (taxed at 15.3% SE) while taking the rest as distributions (not subject to SE tax) can save $5,000–$15,000/year in SE taxes. There's additional accounting cost, so it usually only makes sense above $80k.