How much can a self-employed person deduct in Texas?

Self-employed individuals in Texas can deduct: home office (exclusive use portion), vehicle mileage ($0.67/mile in 2024), health insurance premiums, half of self-employment tax, business equipment, software subscriptions, professional development, business meals (50%), and more. An experienced tax professional finds deductions software misses.

What is the self-employment tax rate in Texas?

Self-employed individuals in Texas pay 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare) on net self-employment income. However, you can deduct half of this amount on your income tax return, and various strategies (S-Corp election, retirement accounts) can significantly reduce this burden.

Should a Houston freelancer or 1099 worker form an LLC or S-Corp?

For self-employed Houstonians earning over $40,000 net, an S-Corp election can reduce self-employment tax by $3,000-$10,000+ per year by splitting income between salary and distributions. Michelet Financial analyzes your specific situation and recommends the most tax-efficient structure.

Self-Employed Tax Preparation Houston TX

Last updated: May 2026 — Information current as of this date

1099 workers, freelancers, gig workers, LLC owners -- we find every deduction, minimize your self-employment tax, and get you the biggest legal refund. Michelet Financial, Houston TX.

Call Michelet Financial: (225) 396-5511

Self-Employed Tax Deductions We Find in Houston

TurboTax and H&R Block catch the obvious ones. Michelet Financial finds the ones you're missing -- and that's where the big refunds come from.

Home OfficeIf you work from home in Houston, you can deduct a portion of rent/mortgage, utilities, internet, and insurance based on your office's square footage.

Vehicle Mileage$0.67/mile for 2024 business miles. Most self-employed Houstonians drive more business miles than they track. We help you reconstruct and document these.

Health Insurance100% of health, dental, and vision premiums are deductible for self-employed individuals -- even if you didn't itemize.

Retirement ContributionsSEP-IRA, Solo 401(k), and SIMPLE IRA contributions reduce both income tax and self-employment tax simultaneously.

Equipment & SoftwareSection 179 allows immediate 100% deduction of business equipment -- computers, cameras, tools, vehicles -- in the year purchased.

Business Meals50% deductible for meals with clients or business partners. Must be documented with who, what, and business purpose.

Professional DevelopmentCourses, certifications, industry publications, and professional memberships are fully deductible business expenses.

Half of SE TaxYou can deduct half of your 15.3% self-employment tax from your gross income -- this is often overlooked by DIY filers.

Self-Employment Tax Strategy for Houston Workers

The S-Corp Strategy: If you're a Houston freelancer or contractor earning $60,000+ net, electing S-Corp status can save $5,000-$15,000 in self-employment tax annually. You pay yourself a reasonable salary (subject to SE tax) and take the remainder as distributions (not subject to SE tax).

Quarterly Estimated Taxes: Self-employed Houstonians must pay quarterly estimated taxes (April 15, June 15, September 15, January 15). We calculate the right amount so you avoid underpayment penalties without overpaying throughout the year.

FAQ -- Self-Employed Taxes Houston TX

What tax deductions can I take as a 1099 worker in Houston?

As a 1099 contractor in Houston, you can deduct: home office, vehicle mileage ($0.67/mile 2024), health insurance premiums, retirement contributions, equipment and software, half your SE tax, business meals (50%), professional development, and all ordinary business expenses. Michelet Financial typically finds $5,000-$20,000 in additional deductions for self-employed Houstonians who previously used software.

How much should I set aside for taxes as a self-employed Houston freelancer?

As a general guideline, set aside 25-30% of net self-employment income for federal taxes (income tax + 15.3% SE tax). Texas has no state income tax, which is a significant advantage. The exact amount depends on your income level, deductions, and filing status -- Michelet Financial calculates your specific number.

Should I form an LLC for my Houston freelance business?

An LLC provides liability protection but doesn't automatically reduce taxes -- it's a legal structure, not a tax one. The tax savings come from electing S-Corp status for your LLC. At $40,000+ net income, this is usually worth analyzing. Call (225) 396-5511 for a free consultation.

Get the Biggest Self-Employed Tax Refund Legally Possible

Michelet Financial specializes in self-employed, 1099, and small business taxes in Houston. Call (225) 396-5511 to schedule your consultation.

Call (225) 396-5511

Self-Employed Tax Preparation Houston TX

Self-Employed Tax Deductions We Find in Houston

Self-Employment Tax Strategy for Houston Workers

FAQ -- Self-Employed Taxes Houston TX

Get the Biggest Self-Employed Tax Refund Legally Possible

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