Self-Employed and 1099 Tax Preparation in NJ

Overhead view of a freelancer’s organized tax records, laptop, generic 1099 forms, mileage notebook, calculator, and coffee on a dark grid surface

This page explains what self-employed and 1099 tax preparation involves and what to expect when you work with Brick Taxes LLC. It is for freelancers, independent contractors, sole proprietors, and other small business owners filing an individual federal and New Jersey return.

Call Brick Taxes LLC at 732-540-1040. Our office is at 88 Queen Ann Rd, Brick, NJ 08723.

Who this service is for

Self-employed tax preparation may fit:

Sole proprietors, independent contractors, and freelancers
Rideshare and delivery drivers
Real estate agents and brokers
Consultants and coaches
Tradespeople and home-service contractors
Creators, resellers, and online sellers
Single-member LLC owners
People with a side business in addition to a W-2 job

If you have already incorporated as an S corporation or operate a partnership, mention that when you call. Those are different engagements from an individual Schedule C return.

What is different about self-employed tax preparation

With self-employment income, tax usually is not withheld from each payment as it is from employee wages. You may need to make estimated tax payments during the year to cover income tax and self-employment tax. Self-employment tax generally covers Social Security and Medicare taxes and is separate from federal income tax; eligible taxpayers may deduct the employer-equivalent portion when calculating adjusted gross income. IRS: Self-employment tax · IRS Publication 505

Business expenses generally must be ordinary and necessary for the business, and records should support the amounts reported. Whether a worker is an employee or an independent contractor depends on the facts and applicable law, not simply on which classification the parties prefer. In practice, organized records make it easier to report income and evaluate expenses accurately. IRS Publication 334

What we need from you

Please gather what you can. If you do not have every item, let us know rather than guessing or leaving out information.

Every Form 1099-NEC and Form 1099-K you received
Any Form W-2 if you also had employment
Business income records, such as platform statements, invoices, and a summary of deposits
A categorized list of business expenses, or bank and credit-card statements we can use to build one
Mileage records or a mileage log showing business miles and total annual miles
Home-office measurements, if you are considering a home-office deduction
Receipts for equipment, supplies, and larger purchases
Records of quarterly estimated tax payments
Form 1098-E for student loan interest and Form 1095-A for Marketplace coverage, if applicable
Your prior-year federal and New Jersey returns
Any IRS or New Jersey notices

See the full What to Bring document checklist.

What Brick Taxes LLC handles

Our role is to prepare the returns from the information you provide, discuss questions that affect the filing, and review the results with you.

Evaluate business expenses and how they should be categorized
Prepare Schedule C with the appropriate income and expense categories
Calculate self-employment tax and the potential deduction for part of it
Consider the qualified business income deduction when applicable IRS: Qualified business income deduction
Review estimated tax payments made and help plan a payment schedule for the coming year
Prepare the New Jersey business-income portion of your return and address applicable New Jersey depreciation adjustments
Prepare and e-file your federal and New Jersey returns
Review the completed return with you before filing

Brick Taxes LLC can explain the return and the information used to prepare it. You remain responsible for providing complete and accurate information and approving the return before it is filed. Call 732-540-1040 if you have questions about whether this service fits your situation.

Schedule C and the 1099 forms

Schedule C reports the profit or loss from a sole proprietorship or other qualifying business activity on an individual return. Form 1099-NEC reports nonemployee compensation, and Form 1099-K reports gross payment-card and third-party-network transactions. The reporting threshold for Form 1099-NEC changed for payments made after 2025; it was generally $600 in earlier years and is generally $2,000 for those later payments. IRS: About Form 1099-NEC · IRS: About Form 1099-K · IRS Publication 334

A Form 1099-K amount is not a deduction or a measure of business profit. It may not account for platform fees, refunds, or cost of goods sold, so it needs to be reconciled with the underlying records. And no 1099 does not mean no tax: business income may still need to be reported even when no information return arrives. IRS Publication 334

Quarterly estimated taxes

Estimated payments may be required when withholding and credits will not cover enough of your expected tax. The federal rules generally use a safe harbor based on the smaller of 90% of current-year tax or 100% of prior-year tax; the prior-year percentage generally rises to 110% when prior-year adjusted gross income exceeded $150,000, or $75,000 for married filing separately. An annualized-income approach may be relevant when income arrives unevenly through the year. IRS Publication 505 · IRS Form 1040-ES

Abstract timeline showing four evenly spaced quarterly payment points across a year, in navy and brick red

For most calendar-year taxpayers, the federal estimated-tax due dates are April 15, June 15, and September 15, followed by January 15 of the next year. New Jersey generally requires estimated payments when more than $400 of tax is expected after withholding and credits; its underpayment rules generally include an 80% current-year standard and may involve other tests or exceptions. IRS Publication 505 · IRS Form 1040-ES · New Jersey Form NJ-1040-ES

For more detail, see our related guide to quarterly estimated taxes.

Deductions that are commonly missed

Potential business deductions depend on the facts, records, and applicable limits. Some areas worth reviewing include:

Home office: The simplified method generally uses $5 per square foot, up to 300 square feet, for a maximum of $1,500. The space generally must be used regularly and exclusively for qualifying business purposes; the actual-expense method has different calculation and recordkeeping requirements. IRS Publication 587 · IRS simplified home-office option
Business mileage: Business miles may qualify under the standard mileage method when applicable; contemporaneous mileage records are important. IRS Publication 463
Vehicle costs: If using the actual-expense method, the business share of eligible vehicle costs may be considered.
Self-employed health insurance premiums: Eligibility and limits depend on your circumstances.
Retirement contributions: Contributions may have tax treatment that depends on the plan and your facts.
Self-employment tax: The employer-equivalent half may be deductible as an adjustment to income when allowed. IRS self-employment tax guidance
Software and professional fees: Business-related subscriptions and professional services may qualify when ordinary, necessary, and properly documented. IRS Publication 334
Continuing education: Training to maintain or improve skills in an existing business may qualify; education that prepares you for a new trade can be treated differently. IRS Publication 535

Abstract grid of business records, mileage route, home-office plan, software, and equipment shapes

Retirement options for the self-employed

Depending on your business and circumstances, self-employed people may consider a SEP IRA, SIMPLE IRA, or solo 401(k). A solo 401(k) can allow both an employee contribution and an employer contribution, so it may permit a larger contribution than some alternatives at the same income level; eligibility, contribution limits, and plan rules still apply. IRS: Retirement plans for self-employed people · IRS: One-participant 401(k) plans

These decisions should be made with your financial advisor. Brick Taxes LLC does not provide investment advice.

When an S corporation election may be worth reviewing

An S corporation election changes how a business’s income and owner compensation are reported. In general, an owner who works in the business must receive reasonable compensation for services, and payroll obligations and additional return filings can apply; distributions are not simply a substitute for salary. Whether the structure makes sense depends on the whole picture, so treat it as a planning conversation rather than a decision made at filing time. See our S corporation articles on the blog, including S Corp Reasonable Salary and Should Real Estate Agents Form an S Corp?.

Serving Brick, Ocean County, and all of New Jersey

Brick Taxes LLC is located at 88 Queen Ann Rd, Brick, NJ 08723. We serve taxpayers in Brick Township, Point Pleasant, Point Pleasant Beach, Manasquan, Wall Township, Howell, Lakewood, Toms River, Jackson, and Beachwood, as well as clients remotely throughout New Jersey and out of state. If you are looking for a Schedule C tax preparer or tax preparation for small business owners, call 732-540-1040 to ask about fit and next steps.

Abstract business income figure branching into two organized return pathways, one federal and one New Jersey, shown as layered navy and brick-red documents

Frequently asked questions

Do I need a 1099 to report my self-employment income? No. Business income may need to be reported even if you did not receive a Form 1099. IRS Publication 334

Can I deduct expenses if I did not keep receipts? Records should substantiate business expenses. Bring any available statements, invoices, or other documentation so we can discuss what supports the amounts. IRS Publication 334

Can I deduct my car if I use it for work? You may be able to deduct the business-use portion under an available method, subject to eligibility and recordkeeping rules. Personal and commuting use are not automatically business use. IRS Publication 463

Do I have to make estimated tax payments? That depends on your expected tax, withholding, credits, and prior-year information. We can review the applicable federal and New Jersey rules with you. IRS Publication 505 · NJ Form NJ-1040-ES

Can Brick Taxes LLC prepare my return if I also have a W-2? Yes, tell us about both the W-2 job and business activity so we can consider the information together. Share any related notices or Marketplace Form 1095-A as well, if applicable.

Next steps

To ask about self-employed tax preparation, call Brick Taxes LLC at 732-540-1040, contact us, or schedule a call. You can also review our services, public Google reviews, and reviews page.

Brick Taxes LLC is not a financial consulting firm and does not provide financial or investment advice; the content is a technical illustration only; readers should consult their own financial advisor; there is no referral arrangement and Brick Taxes LLC receives nothing for saying so.

Call Brick Taxes LLC at 732-540-1040 to discuss whether this service is right for you.

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