The Section 179 deduction for freelancers lets you write off the full cost of business equipment in the year you start using it, instead of spreading it over several years. Software subscriptions are even simpler: they’re ordinary expenses you deduct as you pay them. And items up to $2,500 each can usually be deducted right … Read more
A SEP IRA for freelancers lets you save up to 20% of your net self-employment earnings for retirement, with a cap of $72,000 in 2026. Every dollar you put in lowers your income tax. It’s also one of the simplest accounts to run: no annual IRS filing, and you can open and fund it as … Read more
The self-employed health insurance deduction lets you subtract the health insurance premiums you pay from your income. You take it on Schedule 1 of your Form 1040, so you get it even if you don’t itemize. It’s one of the most valuable freelancer tax deductions, because health coverage is often a freelancer’s biggest monthly bill. … Read more
For most freelancers, the best Solo 401(k) providers are the big brokerages: Fidelity, E*TRADE and Charles Schwab. All three charge no setup or annual fee, offer Roth contributions and let you trade stocks and ETFs commission-free. E*TRADE stands out because it also allows loans. If you earn a lot and want to save beyond the … Read more
The Solo 401(k) contribution limits for 2026 let you save up to $72,000, or more if you’re 50 or older. That total has two parts. As the “employee,” you can put in up to $24,500. As the “employer,” your business can add up to 20% of your net self-employment earnings. Because you wear both hats, … Read more
The QBI deduction for freelancers lets most self-employed people deduct up to 20% of their business profit from their taxable income. You don’t need to itemize, and you don’t need to spend any money to get it. Since a 2025 law made it permanent, it will stay available in 2026 and beyond. The IRS calls … Read more
Using the ACA Marketplace for self-employed coverage works much like it does for anyone else. You apply at HealthCare.gov or your state’s exchange, report your household and income, and pick a plan. The big difference is your income. Since nobody hands you a W-2, you have to estimate your net profit for the year, and … Read more
For most people, the best health insurance for freelancers is either an ACA Marketplace plan or a spouse’s employer plan. Both cover pre-existing conditions and the essential benefits required by law. Other options, like COBRA or Medicaid, fit specific situations. Choosing coverage is one of the biggest money decisions in your first year, which is … Read more
To learn how to invoice as a freelancer, start with one rule: every invoice must tell the client exactly what they owe, for what, and by when. In practice, that means a clear list of your work, a total, a due date and simple ways to pay. This guide gives you a free template you … Read more
This freelancer financial checklist covers the 12 money tasks to handle in your first year, in the order they come up. First, you set up the basics. Then, you build a simple system for taxes and savings. Finally, you file your first return with clean records. Most of these steps take less than an hour. … Read more