11/01/2025
What’s a 1099 Employee?
A 1099 employee (or independent contractor) is someone who works for themselves and doesn’t receive a traditional W-2. Instead, they’re responsible for tracking and paying their own taxes. This includes freelance designers, business consultants, real estate agents, rideshare drivers, hairstylists, digital marketers, and more. If you’re calling the shots in your business—from setting your schedule to managing client work—you likely fall under the 1099 umbrella.
Top 3 Tax Laws Every Small Business Owner Should Know:
Qualified Business Income (QBI) Deduction
Many small businesses and solopreneurs can deduct up to 20% of their qualified business income. This can significantly lower your taxable income and boost your bottom line.
Home Office Deduction
Work from home? You may be able to deduct a portion of your rent, utilities, and other expenses tied to the space you use exclusively for business.
Self-Employment Tax Deductions
As a 1099 worker, you’re on the hook for both employer and employee tax contributions—but you can often deduct half of your self-employment tax and other related expenses to reduce your overall tax bill.
Stop leaving money on the table. Whether you’re a freelance graphic designer scaling up or a seasoned consultant aiming for higher profits, understanding these tax laws can help you maximize your earnings and keep more of what you make.
Ready for next-level tax strategies and business growth tips? Visit the link in our bio or tap our stories to learn how THRS can help you stay compliant, save more, and scale faster!