All self-employment income must be reported, regardless of whether you received a 1099 form. The IRS receives copies of every 1099 issued — reconciliation gaps trigger automated notices.
All 1099-NEC forms collected
From every client or platform that paid you $600 or more during 2025.
Income under $600 recorded separately
Still fully taxable. Total all client payments where you did not receive a formal 1099.
Cash and check payments totalled
Every payment is taxable income regardless of the form it arrived in. Keep a separate log.
PayPal / Stripe / Venmo income reconciled
Verify against 1099-K forms received. Threshold rules at IRS.gov change — confirm current thresholds.
The largest source of overpaid tax for freelancers. Track these throughout 2026 rather than reconstructing in April.
Mileage log maintained · $0.67/mi
Form: Schedule C, Line 9 Date · destination · purpose · miles. Use Stride (free) or MileIQ.
Home office measurements documented
Simplified: $5/sq ft up to 300 Workspace must be used regularly and exclusively for business.
Phone and internet bills saved · business %
12 months of statements. Document business-use percentage (typical: 50–80% for active gig workers).
Health insurance premiums recorded · 100% deductible
Form: Schedule 1 Deductible for any month you were not eligible for employer-sponsored coverage.
Software subscriptions logged
QuickBooks, Adobe, Zoom, Notion, Canva, mileage app, accounting platform — every business subscription is deductible.
Equipment receipts saved · Section 179
Laptops, cameras, microphones, monitors, printers — full cost deductible in year of purchase under Section 179.
Education and professional development
Courses, conferences, certifications, professional books. Must relate to your current line of work.
Bank and payment processing fees totalled
Stripe (2.9% + $0.30), PayPal, bank monthly fees, wire fees — all deductible business expenses.
Business insurance premiums noted
Professional liability (E&O), general liability, business property insurance — fully deductible.
Retirement contributions confirmed · up to $69,000
Solo 401(k) or SEP IRA contributions. Solo 401(k) plan must be established by Dec 31, contributions until tax deadline.
Pay quarterly estimated taxes via IRS Direct Pay at IRS.gov/payments — free, immediate, no fees. Penalties for missed payments accrue at approximately 8% APR.
APR 15 Q1 Payment
Covers earnings from January 1 to March 31, 2026.
JUN 16 Q2 Payment
Covers earnings from April 1 to May 31, 2026.
SEP 15 Q3 Payment
Covers earnings from June 1 to August 31, 2026.
JAN 15 Q4 Payment
Covers earnings from September 1 to December 31, 2026. Paid by January 15, 2027.
The IRS has up to three years to audit a return; six years for substantial omissions; no limit for fraud. Industry standard is to retain seven years of documentation.
All income records and 1099 forms
All expense receipts and bank statements
Mileage logs (date · destination · purpose · miles)
Quarterly payment confirmations from IRS.gov
Copies of all filed tax returns
