Freelance Tax Glossary

Here are simplified definitions of key tax terms that freelancers often encounter. If you ever felt confused by official language—this page is for you.

💼 Self-Employment Tax

A tax paid by freelancers and independent workers to cover Social Security and Medicare, instead of having it withheld by an employer.

🧾 Write-Off

An expense you can subtract from your income to lower your taxable amount—like software, travel, or home office costs.

📅 Estimated Payments

Quarterly tax payments made by freelancers to stay compliant and avoid penalties. You pay based on your projected income.

🌍 Foreign Income

Money earned outside your home country. May require special reporting or credit claims depending on the country.

📉 Deduction

Any item or cost that reduces your taxable income—write-offs are one type of deduction.

📋 Tax Credit

Unlike deductions, a credit reduces the amount of tax you owe directly. It’s like a discount on your tax bill.

🔎 Audit

A government review of your tax filings. It doesn’t always mean trouble—but you’ll need receipts and clarity.

📤 Filing Deadline

The date by which your tax return must be submitted. Missing it can trigger penalties.

If you have questions about other terms, reach out. This glossary will keep growing as new issues come up!