Tax Tracking for Freelancers

Taxes are one of the biggest financial surprises for new freelancers. Unlike a salaried job where withholding happens automatically, self-employed workers are responsible for estimating and paying their own taxes throughout the year. Stintly makes this manageable by tracking your income, categorizing your deductions, and keeping your estimated tax liability visible at all times.

Stintly is not a tax filing service and does not provide tax advice. Always consult a qualified tax professional for your specific situation.

How Stintly Helps With Taxes

Stintly approaches tax tracking in three ways:

1. Income tracking - Every invoice you record feeds into your gross income totals, organized by quarter and year.
2. Expense categorization - Every expense you log is mapped to a Schedule C category so your deductions are ready when you file.
3. Estimated tax calculation - Based on your income and deductions, Stintly estimates your quarterly tax obligation so you're never blindsided.

Together these three pillars give you a real-time picture of your tax situation throughout the year, not just at filing time in April.

Quarterly Tax Estimates

The IRS requires self-employed individuals to pay estimated taxes four times per year - typically in April, June, September, and January. If you underpay, you may owe a penalty when you file.

Stintly automatically calculates your estimated quarterly tax payment based on:

• Your total invoiced income for the quarter
• Deductible expenses you've recorded
• The standard self-employment tax rate (15.3%) plus federal income tax estimate

The estimated payment amount updates in real time as you record income and expenses. You'll find the current quarter's estimate on the Taxes tab, along with the due date and a running total for the year.

Schedule C Categories

Schedule C is the IRS form self-employed individuals use to report business income and expenses. Stintly maps each expense category directly to the corresponding Schedule C line:

• Advertising - Marketing costs, online ads, business cards, promotional materials.
• Office & Supplies - Pens, paper, printer ink, postage, and other consumables used for work.
• Software & Subscriptions - Apps and tools you use for your business, including project management, accounting, and design tools.
• Professional Services - Accountant fees, legal fees, and payments to other contractors.
• Travel - Flights, hotels, and transportation for business trips (not commuting).
• Meals - Business meals are 50% deductible. Stintly handles this automatically.
• Vehicle - Business mileage or actual vehicle expenses (choose one method per year).
• Home Office - If you work from home, a portion of your rent/mortgage and utilities may be deductible.
• Education & Training - Courses, books, and conferences directly related to your current profession.
• Equipment - Computers, cameras, tools, and other gear used for work.

When you add an expense in Stintly, choose the most fitting category from the list. If you're unsure, use Other Business Expenses and sort it out with your accountant at year-end.

Deduction Tracking

The more deductions you track, the lower your taxable income - and the less you owe. Stintly makes it easy to record deductions as you go rather than trying to reconstruct expenses months later.

Common freelancer deductions worth tracking consistently:

• Business-use portion of your phone and internet bill
• Health insurance premiums (self-employed deduction)
• Retirement contributions (SEP-IRA, Solo 401k)
• Professional memberships and licenses
• Client gifts (up to $25 per client per year)
• Bank fees and payment processing fees
• Business insurance premiums

Each expense you add in Stintly includes a Notes field. Use it to record the business purpose - for example, "Client dinner with Acme Corp, discussed Q2 project scope." A clear note is your best defense if your deduction is ever questioned.

Deductions Dashboard

The Taxes tab includes a dedicated Deductions screen that gives you a bird's-eye view of all your tax deductions for the year. Tap Deductions from the Taxes tab to see:

• Total deductible amount — your combined deductions across all categories for the selected tax year
• Category breakdown — each Schedule C category with its total deductible amount, so you can see exactly where your deductions come from
• Deductibility analysis — highlights expenses marked as partially deductible (like meals at 50%) versus fully deductible items

On Premium, the Deductions screen also includes the AI Deduction Optimizer, which analyzes your expense patterns and suggests deductions you may be missing. For example, it might flag that you're tracking software subscriptions but haven't logged your home office internet as a business expense.

Tax Liability Tracker

Available on Premium, the Tax Liability Tracker shows your running estimated tax owed for the current year - updated every time you log income or an expense. You'll see:

• Estimated total tax owed for the year so far
• Estimated self-employment tax (Social Security + Medicare)
• Estimated federal income tax based on your income bracket
• How much you've already paid in quarterly estimates
• The remaining balance to set aside before your next payment

This gives you a clear answer to the question every freelancer asks: "How much of this payment do I actually get to keep?"

Exporting for TurboTax and Accountants

When it's time to file, Stintly lets you export your financial data in formats that work with the tools you or your accountant already use:

• CSV - A flat spreadsheet with all income and expenses, sortable by date, category, client, or job. Works with any spreadsheet application.
• QuickBooks format - Import directly into QuickBooks Online or QuickBooks Desktop.
• Xero format - Import directly into Xero for accountants who work in that ecosystem.

To export, go to Settings > Export Data and choose your format. You can export for a custom date range - useful for exporting just Q1 data or a full calendar year.

If you use TurboTax Self-Employed, the CSV export maps cleanly to the Schedule C interview questions. Your accountant will appreciate having categorized data rather than a shoebox of receipts.

Tips for Stress-Free Tax Season

• Track every expense, no matter how small. Small deductions add up. A $10 software subscription over 12 months is $120 off your taxable income.
• Review your categories quarterly. Spend 15 minutes at the end of each quarter checking that expenses are in the right categories before you forget the details.
• Set aside 25-30% of every payment. A simple rule of thumb: move 25-30% of each client payment to a separate savings account earmarked for taxes. Stintly's Tax Liability Tracker helps you refine this percentage as the year progresses.
• Pay quarterly estimates on time. Stintly shows the due date for each quarter's payment. Missing a deadline incurs interest charges, even if you pay the full amount when you file.
• Keep receipts. Stintly tracks the numbers, but you should keep the actual receipts - paper or digital - for at least three years in case of an audit.