Year-end tax checklist for freelancers and the self-employed

Tick items off as you go. Your progress is stored in this browser only, so you can come back to it. Items are grouped by when they are due.

Why a year-end routine pays off

Employees get a W-2 and a withholding that mostly settles their bill. Freelancers carry the whole job: tracking income, paying quarterly, choosing deductions and choosing retirement contributions. A short checklist completed in December and January prevents the most expensive mistakes, namely missed deductions, underpaid estimates and missing records.

Cash versus accrual accounting

Most freelancers use the cash method: income counts when you receive it, and expenses when you pay them. That gives some control over timing, but not unlimited: the IRS applies "constructive receipt", meaning income you could have taken in December counts even if you chose not to collect it. Use timing to smooth income across years, not to hide it.

Deductions freelancers commonly miss

• Half of self-employment tax, deducted on Form 1040.
• Health insurance premiums for you and your family, if you are not eligible for an employer plan.
• Retirement contributions to a SEP-IRA or solo 401(k).
• Home office, internet, phone and software used for work.
• Professional fees, education related to your current business and bank charges.
• Business mileage: standard rate set annually by the IRS.

Keep records for at least three years

The IRS generally has three years after you file to audit a return, and six if you omit more than 25% of income. Keep returns, 1099s, bank statements and receipts accordingly. Employment-related records should be kept longer.

Related tools

Use the quarterly deadlines planner for payment dates, the 2026 contribution limits for retirement and HSA caps, and the freelancer tax calculator for the amount to set aside.

Sources

• IRS: Self-employed individuals tax center
• IRS Publication 334: Tax Guide for Small Business
• IRS: How long should I keep records?

Last reviewed 2026-11-09. General information for planning only, not tax, legal or financial advice. Nothing you enter leaves your browser.

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