January marks the start of tax season in the United States. If you're self-employed, a freelancer, a contractor or a small business owner, this is the best time to organize your numbers and take advantage of deductions and credits that make a real difference in your pocket.

Why This Matters Now

• Self-employment keeps growing: in 2023, 64 million people in the U.S. did freelance work (38% of the workforce). That means more “1099” income and more responsibility to report and plan your taxes properly.
• The small business base is huge: there are 33.3 million small businesses in the country (99.9% of all businesses), and they employ more than 61 million people. If you're part of this group, a good tax strategy can improve your cash flow and your growth in 2026.
• A chance for refunds and relief: every year, more than 31 million workers and families qualify for the Earned Income Tax Credit (EITC). Even so, about 1 in 5 eligible people don't claim it because they lack information.

What Some Key Terms Mean

• 1099: a form that reports income earned as a freelancer/contractor (not as a salaried employee). If you receive payments through platforms, clients or apps, you'll usually get a 1099.
• Deduction: an expense related to your work that reduces your taxable income. Examples: business mileage, supplies, software, advertising.
• Credit: a direct reduction of your calculated tax. The EITC and the Child Tax Credit are examples. A credit is worth more than a deduction because it reduces your tax dollar for dollar.

7 Practical Steps for This Tax Season

• 1) Separate your business and personal finances
  • Use a business bank account and a dedicated card. This makes it easier to report income and expenses and reduces your risk in an audit.
• 2) Start tracking everything now
  • Income: deposits, 1099s, payments through apps/platforms.
  • Expenses: subscriptions, software, equipment, advertising, professional fees, courses, phone (business-use portion), internet, office rent.
  • Tip: keep invoices/receipts and bank statements. Simple bookkeeping tools or a well-organized spreadsheet are enough if you're consistent.
• 3) Review deductions many people forget
  • Home office: if you regularly work from a dedicated area in your home, you can deduct part of your rent/mortgage, utilities and insurance. There's a simplified square-footage method if you don't want complex calculations.
  • Vehicle mileage: log your business miles (visits to clients, banks, suppliers). A basic log with the date, purpose and miles works.
  • Self-employed health insurance: if you're not covered by an employer plan, your premium may be deductible.
  • Equipment and technology: laptops, cell phones, cameras, printers, software and professional subscriptions.
  • Retirement contributions: a SEP IRA or Solo 401(k) can substantially reduce your taxes while you build your retirement.
• 4) Find out whether you qualify for credits
  • EITC (Earned Income Tax Credit): aimed at low- to moderate-income earners; it can significantly increase your refund.
  • Child Tax Credit: if you have children with an SSN and meet the income requirements.
  • Child and Dependent Care Credit: if you pay for daycare so you can work.
  • Note: eligibility depends on your income, filing status and other factors. We can help you confirm it.
• 5) Plan your estimated payments
  • If you owe taxes every year, consider making quarterly payments to avoid penalties. This protects your cash flow and helps you avoid “surprises” in April.
• 6) Choose the right business structure
  • As a sole proprietor, you pay tax on your net profit plus “self-employment tax.”
  • An LLC can give you legal protection; and with an S-Corp election, in certain cases, taxes can be optimized when profits are steady. Evaluating this with real numbers is key.
• 7) File electronically and on time
  • More than 90% of returns are filed by e-file because it's faster and reduces errors. If you're expecting a refund, direct deposit usually speeds up payment.

Signs You Need Professional Help Now

• You received several 1099s from clients or platforms and your books aren't up to date.
• You sold assets (crypto, a car, equipment, a home) and don't know how to report it.
• You fell behind on estimated payments or owe the IRS and want a plan.
• You're about to open your business and don't know whether an LLC, S-Corp or another structure is right for you.

How Imfinita Tax Team Helps You

• Organizing and closing your 2025 books, preparing your taxes in 2026 and filing electronically.
• A review of deductions and credits to maximize your savings (EITC, children, education, energy, retirement).
• Personalized tax planning (including the S-Corp option when it makes sense).
• Support with ITIN/SSN, state and local compliance, and business registration/formation.
• Cash flow strategies and insurance that protect your business.

Book your consultation at www.imfinitataxteam.com. We speak Spanish and will guide you step by step.

Sources

• Upwork Research. Freelance Forward 2023: 64 million Americans performed freelance work (38% of the workforce). https://www.upwork.com/research/freelance-forward-2023
• U.S. Small Business Administration, Office of Advocacy. Small Business Frequently Asked Questions (2023): 33.3 million small businesses; 99.9% of firms; 61.6 million employees. https://advocacy.sba.gov/wp-content/uploads/2023/08/Small-Business-FAQ-2023.pdf
• Internal Revenue Service. EITC Central – Statistics: over 31 million claimants each year; participation gap near 20%. https://www.eitc.irs.gov/partners/eitc-statistics and https://www.eitc.irs.gov/partners/participation-rate
• IRS Data Book (2023): over 90% of individual returns filed electronically. https://www.irs.gov/statistics/soi-tax-stats-irs-data-book

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