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Income tax calculator for
Freelance Developer in New York
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Self Employed Freelance developer Taxes
These SE taxes are used to pay:
- Federal Income tax
- State income tax
- Self-employment taxes
- Social security
- Medicaid/medicare
Apart from these above-mentioned taxes, freelancers and self-employed workers also have to pay for:
- Capital gains taxes: both short term and long term gains
- AMT or Alternative Minimum Taxes for those earning over $100k annually
According to the IRS, self-employed workers who earn less than $400 annually don’t have to pay the Self Employment tax.
Moreover, the New York self employment tax is considered a Tax deduction for Freelance developer in New York. Although the tax is charged on a taxpayer’s business profit, the IRS counts the "employer" half of the self-employment tax, or 7.65% (calculated as half of 15.3%), as a business deduction for purposes of calculating the self employed tax.
As a self-employed Freelance Developer, you are required to file an annual return and pay estimated taxes for 1099. Quarterly taxes for Freelance Developers must be paid using Form 1040-ES if your Federal tax liability is over $1,000 for the year. To lower your tax liability, make sure to utilize the software developer tax deductions.
Tax rates for Freelance developers in New York
New York’s top marginal income tax rate of 8.82% is one of the highest in the country, but very few taxpayers have to pay that amount. The state applies taxes progressively, where higher earners pay higher rates.
Moreover, New York City (NYC) also levies its income taxes, which means residents of the Big Apple pay some of the nation’s highest local rates
The following table represents the New York Income Tax Brackets and Rates:
Single Filer/Married filing separately
Married Filing Jointly
Head of household
NYC Tax Rates & Bracket
As mentioned above, New York City levies its own income tax rates, the following table represents New York City’s income tax rates and brackets:
Single Filer/Married filing separately
Married Filing Jointly
Head of household
Single Filer/Married filing separately
A single filer represents the person who is unmarried and does not qualify for any other filing status. Generally, the tax rates and brackets that apply to single filers also apply to individuals who are married but file their taxes separately.
Married Filing Jointly
Married filing jointly represents the tax filing status available to married couples who were married by 31st December of the tax year. Couples who file their taxes as Married Filing Jointly, get the most tax breaks.
Head of household
Head of Household is a filing status for single or unmarried taxpayers who keep up a home for a Qualifying Person (child, relative, boyfriend/girlfriend, or any dependent). The Head of Household filing status has some major tax advantages over the Single filing status such as a lower tax rate and a higher standard deduction.
Deductions & Credits
The following table represents the New York state tax standard deduction rate based on one’s filing status:
If you are dependent within the state of New York, you can claim a personal exemption of up to $1,000.
FlyFin’s New York Freelance Tax Calculator can help you figure out your tax liability with ease.
Personal exemption
According to the IRS, a personal exemption refers to an amount that a resident taxpayer is entitled to claim as a tax deduction against personal income in calculating taxable income and consequently federal income tax.
Freelancers in New York
- New York have a freelance population of 600,000 and have a market cap of $26bn in 2019
- On an average freelancers spend 25 hour a week at their work in USA. 40% works fewer than 20 hours per week and 6% work more than 50 hour per week
- In the period from 2012-2017 revenue from freelance contractors has grown to 12% and number of freelancers have grown to 20%
600,000
Freelance
population
$26 bn
Revenue
Income
1.4% of the GDP
freelancers in 2019
independent
contractor
earn $44,520
Freelance
growth
Revenue
growth
- 34% of NYC’s workforce is freelancing.
- Nearly three of every ten (28%) dollars of New York’s $26 Billion in skilled independent revenues comes from outside the metro area and therefore contribute $7.3 Billion to its economic base.
Freelance developer Tax Deduction in New York | FlyFin
The following represents some of the top tax deductions for Freelance developers in New York
Electronics
Any gadget you require for your work is deductible. This includes your cell phone, laptop, camera, etc
Hardware and Software
Write off any hardware and software resources you need to perform your job. You can deduct any software that is related to your profession
Office supplies
All office-related purchases like stationery, photocopies, and monitors are tax deductible. You can also deduct any equipment you require for your business. If you work from home, you can claim the home office deduction
Phone bill
Your monthly phone bill for your business phone is fully deductible. However, suppose you use your phone for both personal and business purposes. In that case, you can partially deduct the cost of your phone bill
Conferences & Seminar
If you decide to attend a conference or online program that happens to help you in your trade, you can deduct its fees. Similarly, you can deduct the tuition fees for any course you pursue which is related to your profession. It's a beneficial software development tax deduction.
Website expenses
All website-related expenses such as hosting fees, plugins, stock photos, and themes are deductible. Similarly, you can also deduct the cost of marketing and advertising expenses
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