A rideshare or delivery driver can receive $4,000 in qualified tips over the year and still not deduct all $4,000 of it under the federal “no tax on tips” deduction. Self-employed workers face two separate caps: a flat $25,000 annual limit, and a second, less-discussed limit tied to the net income of the specific business … Read more
Whether Instacart sends you a 1099 depends on what kind of shopper you are and how much you earned. Receiving one, or not receiving one, doesn’t by itself tell you what you owe. This guide walks through exactly which form applies to you. It also covers the actual 2026 reporting thresholds — several of which … Read more
If you’re self-employed, self-employment tax is generally a separate federal tax in addition to regular income tax. For many freelancers, it is calculated by applying the 12.4% Social Security and 2.9% Medicare rates to 92.35% of net self-employment profit—not gross revenue. The Social Security portion is capped, W-2 wages can reduce how much of your self-employment … Read more