Taxes for self-employed 1099 workers: cleaning, construction and other trades

When you are self-employed

If a client or a company pays you for your work and does not withhold tax, you are usually an independent contractor. That income and your expenses are reported on Schedule C of your return.

Form 1099-NEC

• For payments made in 2026, a business that paid you $2,000 or more in the year sends you a 1099-NEC. Before 2026 the amount was $600.
• If you are paid through apps or payment platforms, you may get a 1099-K when you receive over $20,000 in more than 200 transactions.

With or without a form, everything you earn on your own is reported, including cash payments.

Self-employment tax

On top of income tax, you pay 15.3%: 12.4% for Social Security and 2.9% for Medicare. It is generally figured on 92.35% of your net earnings and applies when those earnings are $400 or more. It is figured on Schedule SE.

Half of this tax is subtracted from your income when figuring income tax.

Work expenses

• Materials and supplies, for example cleaning or construction supplies.
• Tools and equipment.
• Using your car or truck for work. With the standard rate, 2026 is 72.5 cents per mile from January to June and 76 cents from July to December.
• The work share of your phone and internet.
• Business insurance, licenses and permits.
• Advertising, such as flyers or business cards.

What you spend to do your work reduces your net earnings, and with them both taxes. Some common expenses in the trades:

The records to keep

• Income: invoices, receipts and deposits, with the date and the client.
• Expenses: receipts and bank and card statements, with date, amount and purpose.
• Mileage: a log with the date, destination and purpose of each work trip.
• Large tools and equipment: when you bought them and what they cost.

Personal expenses are not deductible. If something is used for work and at home, only the work share counts. A bank account used only for work makes bookkeeping much easier.

Estimated payments

Because nobody withholds tax for you, the IRS expects payments during the year if you will owe $1,000 or more when you file. They are made with Form 1040-ES, by mail or online.

The fourth-quarter 2026 payment is due January 15, 2027. Generally there is no penalty if you paid at least 90% of this year’s tax or 100% of last year’s tax, whichever is smaller.