How the Freelancer Schedule C Income Calculator Works
Some countries let self-employed workers deduct a flat, government-set percentage of income as a "standard expense rate" instead of tracking every receipt. The U.S. doesn't work that way: freelancers report actual business expenses on Schedule C, and the deduction only counts what you can genuinely document — supplies, software, a home-office portion, professional fees, and so on. The one notable exception is vehicle use, where the IRS offers a standard mileage rate instead of requiring itemized car expense receipts.
On top of federal income tax, freelance net profit is subject to self-employment (SE) tax — 15.3% covering Social Security and Medicare, calculated on 92.35% of net profit. This exists because a freelancer effectively pays both the "employee" and "employer" halves of payroll tax that a W-2 job would split with an employer. Half of the SE tax is then deducted before calculating regular income tax.
This calculator estimates both taxes using simplified 2024 single-filer federal brackets. It's meant to give you a ballpark figure for planning quarterly estimated payments — your actual bill will differ based on filing status, the Qualified Business Income (QBI) deduction, other income sources, and any state income tax.
Frequently Asked Questions
No. The IRS doesn't offer a flat percentage deduction for freelance income. You report your actual, documented business expenses on Schedule C — the deduction is based on real receipts and records, not a standard industry percentage (the standard mileage rate for vehicle use is one narrow exception).
It's the 15.3% Social Security and Medicare tax freelancers pay on 92.35% of net profit, since there's no employer to split the cost. It's separate from — and in addition to — federal income tax.
No, it's a simplified estimate. Actual tax depends on filing status, the QBI deduction, other income, and state taxes. Use tax software or a CPA for a precise number.