How We Help You Pay Less and Save More
Working for yourself means no one sets up your tax savings or retirement plan for you. We do it, so you keep more of what you earn.
Tax optimization
Business-expense review, quarterly tax planning, and self-employment tax strategy.
Retirement planning
Compare eligible Add a simple retirement account and Solo 401(k) options and coordinate plan choices with your tax professional.
Business structure
Review LLC, S-Corporation, and other structures in light of your income, goals, and compliance costs.
Frequently Asked Questions About Contractor Taxes
Answers about tax planning, retirement contributions, and business structures for independent contractors.
How much can independent contractors save on taxes?
Potential savings depend on your income, business structure, eligible deductions, and retirement contributions. S-Corporation planning may reduce self-employment taxes on distributions when you pay a reasonable salary, while a Solo 401(k) can shelter eligible contributions for retirement. Use our calculator for an educational estimate, then review your situation with a qualified tax professional.
What is the difference between S-Corp and C-Corp for contractors?
An S-Corporation may let an owner who works in the business take a reasonable salary subject to payroll taxes and receive remaining eligible profit as distributions. A C-Corporation is a separate taxpayer and may offer different benefit and retained-earnings options, but distributions can face two layers of tax. The right structure depends on income, business plans, and compliance costs; get individualized tax advice before electing either structure.
How much can I contribute to a Solo 401(k) in 2026?
For 2026, the 401(k) employee elective-deferral limit is $24,500. Total defined-contribution additions generally cannot exceed the lesser of 100% of compensation or $72,000, before catch-up contributions. Eligible participants age 50 or older may generally add an $8,000 catch-up; participants age 60 through 63 may qualify for the higher $11,250 catch-up instead. Actual self-employed contributions depend on earned income, plan terms, and other plans.
What tax deductions can freelancers and contractors claim?
Depending on the facts and records, common business deductions may include qualifying home-office expenses, equipment and software, business-use vehicle costs, professional services, supplies, and business travel. Health-insurance and retirement-plan deductions have separate eligibility rules. Keep contemporaneous records and ask a tax professional which expenses are deductible for your business.
How does IndieVaults work with my existing accountant?
IndieVaults focuses on strategy, tax planning, retirement options, and business-structure analysis, and can coordinate with your existing CPA or tax professional. Your tax professional remains responsible for tax filings and compliance unless you separately agree otherwise.
What is self-employment tax and how can I reduce it?
Self-employment tax generally covers Social Security and Medicare taxes on net earnings from self-employment. Its calculation and applicable limits can change by year. Accurate expense records, retirement-plan contributions, and an appropriate business structure may affect your overall tax picture, but no strategy removes tax obligations automatically. Consult a tax professional about your facts.
Do I need to make quarterly estimated tax payments?
You may need estimated payments if you expect to owe tax when you file. The rules depend on your withholding, prior-year tax, and current-year income, and due dates can vary when a calendar date falls on a weekend or holiday. Use the IRS estimated-tax guidance or ask a tax professional to calculate your required payments.