For freelancers
Built for 1099 earners who run their own money.
Quarterly tax, Solo 401(k), S-corp election, HSA on an ACA plan, business banking that doesn't charge you to move money. The moves no one builds content for — because they're hard to fit on a pitch deck.
The four decisions
Most freelancer money confusion comes down to four questions.
1. Quarterly estimated tax — how much, when
The IRS wants you to prepay your income tax on a quarterly schedule — April 15, June 15, September 15, and January 15. If you don't, you pay an underpayment penalty (currently ~8% annualized). The safe-harbor rule: pay at least 110% of last year's total tax liability (100% if your AGI was under $150K) across the four payments, and the IRS won't penalize you regardless of what you actually owe when you file.
Rule of thumb: set aside 25–30% of every 1099 invoice immediately into a separate account. Your state might also want quarterly payments — nine states do.
2. Solo 401(k) vs SEP-IRA — which and why
Both are self-employed retirement accounts. The difference matters:
- Solo 401(k) — lets you contribute as both employee (up to $23,000 in 2026, or $30,500 over 50) and employer (up to 25% of net self-employment income). Combined limit: $69,000 in 2026. Better for lower-revenue years because the employee portion is a flat dollar amount.
- SEP-IRA — only the employer side, capped at 25% of net SE income. Simpler to open, but no Roth option, and it triggers the pro-rata rule if you ever try a backdoor Roth.
For most solo freelancers earning $50K–$200K net, the Solo 401(k) wins on both dollar contribution and flexibility. The setup is a 30-minute project at Fidelity, Schwab, or eTrade.
3. S-corp election — at what revenue does the math work
Electing S-corp status lets you pay yourself a "reasonable salary" (subject to payroll tax) and take the rest as a distribution (not subject to payroll tax). The savings only appear when your net self-employment income clears roughly $80K–$100K. Below that, the added cost (payroll service, separate tax filings, corporate registration) exceeds the payroll-tax savings.
Above $150K net, the S-corp election routinely saves $5K–$15K/year. Worth the conversation with a CPA.
4. HSA eligibility on ACA plans
You're eligible for an HSA if you're on a high-deductible health plan (HDHP). Many ACA marketplace plans qualify; some Bronze and Silver plans do, others don't. Check the plan summary for "HSA-qualified" before enrolling. The 2026 HSA family limit is $8,750 — the single most tax-efficient dollar a freelancer can move.
Tools built for freelancers
Run your numbers.
Turn a refund or a big invoice into a plan.
Answer 5 questions; get a prioritized allocation — emergency fund, HSA, Solo 401(k), Roth IRA, and what's left.
Open →HYSA vs T-Bills vs CDs, after your state tax.
T-Bills are state-tax exempt — in CA or NY that flips the ranking. The full comparison.
Open →The freelancer money playbook
The Freelancer Blueprint — $147.
The four money decisions every 1099 earner has to make — quarterly taxes, Solo 401(k) vs SEP-IRA, the S-corp breakeven, and HSA on an ACA plan — explained in plain English, with the frameworks and the math laid out so you can run your own numbers. Includes fill-in-yourself worksheets. Educational only — built to take to your CPA, not to replace them.
Get the Blueprint →— The MoneyBrief Team