Those of you lucky enough to own your own business know it comes with many hassles. One such hassle is assessing and paying your taxes without a traditional employer’s payroll department. To help, we have this bookkeeper’s guide to self-employed taxes.

1. Who Qualifies as Self-Employed?

Those of you who work for yourselves as a business of one are often thought of as self-employed. The leading professions for self-employed workers were:

  • Professional services.
  • Technical services such as web design, coding, consulting, etc.
  • Real estate services such as listings, leases, and rentals.
  • Construction and trade services.
  • Medical and healthcare services.

In short, these can include anything from plumbers to hair dressers and other aestheticians.

Did you know? Approximately 16.8 million Americans were qualified as self-employed in 2026? Of these, 10.2 million were designated as unincorporated individuals. Source: Carry

2. Do I Have to Pay Self-Employment Taxes?

Those of you who make over $400 in income all year during your self-employment must pay federal incomes. You will usually file a 1040 just like everyone else. You will pay self-employment, social security, and Medicare taxes. However unlike everyone else, you must pay both portions since you are considered both employer and employee. This is why paying the fee to file your own corporation may be more advantageous.

3. Do Self-Employed Workers Get Tax Deductions and Credits?

Yes, you do. For example, you may deduct the employer-equivalent portion of your self-employment tax when calculating adjusted gross income. You may also deduct ordinary business expenses as done on IRS Schedule C. It is also possible to deduct other traditional expenses such as educational, healthcare, mileage, office supplies, utilities for business purposes, and many others. See a qualified bookkeeper in your area to determine which credits and deductions you qualify for.

4. How Do I File Self-Employed Taxes?

Unfortunately, those of you who are self-employed must make quarterly payments on your taxes, as you have no traditional employer to do so. The deadlines for making estimated payments are every four months on the 15th of just about each year. So you would have to make your quarterly payments before that day in April, June, September, and January. You will often need to file a 1040-ES, Schedule C, and Schedule SE each time. We recommend using a professional bookkeeper to set up the time and amount of your payments to make sure it is done correctly. To learn more, you may visit the Self-Employed Individuals Tax Center from the IRS.

A Bookkeeper’s Guide to Self-Employed Taxes in Houston

Do you live in the Houston area and are self-employed? Contact us to make sure you are taking advantage of all the credits and deductions available to you, as well as are filing your taxes correctly.