Everlance has helped over 4 million independent workers save on thir taxes, effortlessly. Download the top rated mileage & expense tracker today.
Self-employment income — all 1099-NEC, 1099-K, or freelance earnings for the year
W-2 income — if you also hold a salaried or hourly employee job
Business mileage — converted to a dollar deduction using the current IRS mileage rate ($0.725/mile for 2026)
Other business expenses — phone bills, software, home office costs, professional services, and more
Filing status — single or married, which affects your federal income tax bracket
State, because state income tax rates vary significantly, from 0% in states like Texas and Florida to over 13% in California
Helps you avoid underpayment penalties by ensuring you pay the correct amount of taxes
Allows for better financial planning by estimating quarterly tax payments
Saves time and reduces stress during tax season
If you're a 1099 contractor, you're self-employed
As a 1099 contractor, you're typically responsible for quarterly and annual taxes
The easiest way to lower your tax burden is to ensure you're accurately reporting revenue and expenses. Apps like Everlance make it easy to track every trip and expense along the way.
This form is used by employers to report wage and salary information for employees. If you receive a W-2, it means you are considered an employee of the company. Employees typically have taxes withheld from their paychecks and may be eligible for certain benefits like health insurance, retirement plans, and paid leave.
The 1099 form is used for independent contractors, freelancers, and self-employed individuals who provide services to a business. As a 1099 worker, you are considered self-employed, meaning you are responsible for managing and paying your own taxes, including self-employment tax.
Taxes are withheld from each paycheck. Employers withhold federal income tax, Social Security, and Medicare taxes. They also contribute to Social Security and Medicare taxes on your behalf.
No taxes are withheld from payments to 1099 workers. Instead, you're responsible for paying all your taxes directly to the IRS. This includes self-employment tax (which covers Social Security and Medicare taxes) and quarterly estimated taxes.
Often receive benefits like unemployment insurance, workers' compensation, and employer-provided health insurance. They're also protected by labor laws, including minimum wage and overtime pay.
Generally, do not receive these benefits and protections. They have the freedom to work for multiple clients and control over how and when they work, but they also bear the full burden of their business expenses and health insurance.
Limited in what they can deduct in terms of work-related expenses.
Have more flexibility in deducting business expenses. They can write off costs directly related to the services they provide, such as home office expenses, supplies, and travel expenses.
Everlance has helped over 4 million independent workers save on thir taxes, effortlessly. Download the top rated mileage & expense tracker today.
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