Taxes for Freelance Developers: What You Need to Know

def calculate_self_employment_tax(net_income):
    social_security_rate = 0.124
    medicare_rate = 0.029
    ss_wage_base = 168600

    ss_income = min(net_income, ss_wage_base)
    ss_tax = ss_income * social_security_rate
    medicare_tax = net_income * medicare_rate

    return round(ss_tax + medicare_tax, 2)

print(f"Self-employment tax on $80,000: ${calculate_self_employment_tax(80000)}")

def estimate_quarterly_tax(projected_annual_income, filing_status="single"):
    standard_deduction = 14600 if filing_status == "single" else 29200
    taxable_income = max(0, projected_annual_income - standard_deduction)

    self_employment_tax = calculate_self_employment_tax(projected_annual_income)

    if taxable_income <= 11600:
        income_tax = taxable_income * 0.10
    elif taxable_income <= 47150:
        income_tax = 1160 + (taxable_income - 11600) * 0.12
    else:
        income_tax = 5426 + (taxable_income - 47150) * 0.22

    total_tax = self_employment_tax + income_tax
    quarterly = total_tax / 4
    return round(quarterly, 2)

print(f"Quarterly payment: ${estimate_quarterly_tax(80000)}")

# Sample expense tracking spreadsheet

Date       | Category        | Description          | Amount    | Receipt
-----------|-----------------|----------------------|-----------|--------
2026-01-15 | Software        | JetBrains IDE        | $249.00   | receipt_001.pdf
2026-02-01 | Equipment       | External monitor     | $349.00   | receipt_002.pdf
2026-02-15 | Internet        | Monthly internet     | $60.00    | receipt_003.pdf
2026-03-01 | Education       | AWS course           | $199.00   | receipt_004.pdf
2026-03-15 | Home Office     | Desk and chair       | $450.00   | receipt_005.pdf

const retirementOptions = [
  {
    name: "Solo 401(k)",
    maxContribution: 69000,
    deadline: "Dec 31",
    bestFor: "High earners wanting maximum savings]
  },
  {
    name: "SEP IRA",
    maxContribution: 69000,
    deadline: "Tax filing date",
    bestFor: "Simple setup with high limits"
  },
  {
    name: "Traditional IRA",
    maxContribution: 7000,
    deadline: "Tax filing date",
    bestFor: "Low-cost, simple retirement savings"
  },
  {
    name: "Roth IRA",
    maxContribution: 7000,
    deadline: "Tax filing date",
    bestFor: "Tax-free growth for younger freelancers"
  }
];

retirementOptions.forEach(option => {
  console.log(`${option.name}: Up to $${option.maxContribution}`);
});

class TaxRecord:
    def __init__(self):
        self.income_records = []
        self.expense_records = []

    def add_income(self, client, amount, date, invoice_number):
        self.income_records.append({
            "client": client,
            "amount": amount,
            "date": date,
            "invoice": invoice_number
        })

    def add_expense(self, category, amount, date, description):
        self.expense_records.append({
            "category": category,
            "amount": amount,
            "date": date,
            "description": description
        })

    def total_income(self):
        return sum(r["amount"] for r in self.income_records)

    def total_expenses(self):
        return sum(r["amount"] for r in self.expense_records)

    def net_income(self):
        return self.total_income() - self.total_expenses()

records = TaxRecord()
records.add_income("Acme Corp", 5000, "2026-06-01", "INV-001")
records.add_expense("Software", 249, "2026-06-15", "JetBrains IDE")
print(f"Net income: ${records.net_income()}")