Self-employment taxes with an ITIN — 1099, Schedule C, and self-employment tax

How self-employed and 1099 workers file taxes with an ITIN: self-employment tax (15.3%), Schedule C and Schedule SE, quarterly estimated payments, deductible business expenses, getting an EIN, and W-2 vs 1099.

Self-employment taxes with an ITIN

Many immigrants work as independent contractors, gig workers, or small-business owners — paid on a 1099 (or in cash) rather than a W-2. If that’s you, you can and must file taxes with your ITIN, and this page explains exactly how: self-employment tax, the forms, quarterly payments, and the deductions that lower your bill.

This is general information, not tax advice. For your specific situation, use a VITA site or a licensed preparer (CPA or Enrolled Agent).

You must report self-employment income — and you can

If you earn money working for yourself, you have a federal tax obligation regardless of immigration status, and you file using your ITIN if you don’t have an SSN. Filing also lets you build a record of tax compliance and claim the deductions and (where eligible) credits you’re entitled to.

The two extra forms for self-employment

Form	What it does
Schedule C	Reports your business income and expenses; the result is your net profit
Schedule SE	Calculates self-employment tax (15.3%) on that net profit
Form 1040-ES	Used to make quarterly estimated tax payments during the year

Self-employment tax: 15.3%

When you work for an employer, you and the employer split Social Security and Medicare taxes. When you’re self-employed, you pay both halves — 15.3% of your net profit:

12.4% Social Security (up to an annual income cap)
2.9% Medicare (no cap)

You also pay regular income tax on top of that, based on your bracket. One break: you can deduct half of your self-employment tax on your return.

Note: self-employment tax funds Social Security and Medicare even though ITIN holders may not be able to collect those benefits. It is still legally required.

Quarterly estimated payments

Because no employer is withholding tax for you, the IRS expects you to pay as you go. If you’ll owe $1,000 or more, make quarterly estimated payments with Form 1040-ES (roughly April, June, September, and January). A simple habit: set aside ~25–30% of every payment you receive for taxes.

Lower your bill with deductions

On Schedule C you subtract ordinary and necessary business expenses from your income and pay tax only on the net profit. Common deductions:

Supplies, materials, and tools
Vehicle mileage for work (keep a log)
Phone and internet (business portion)
A home-office portion, if you qualify
Business insurance, licenses, and fees

Keep receipts and a simple income/expense log — good records are the easiest way to lower your taxes legally.

Do you need an EIN?

A sole proprietor can usually file with just the ITIN. Get a free EIN (Employer Identification Number) if you:

Hire employees,
Form an LLC or corporation, or
Want to give clients an EIN instead of your personal ITIN.

You request an EIN on Form SS-4 — an ITIN holder can be the responsible party. See forming an LLC to structure your business.

W-2 vs 1099 — know the difference

W-2 employee: the employer withholds taxes and pays half of Social Security/Medicare.
1099 / self-employed: no withholding — you handle income tax and the full 15.3% self-employment tax yourself.

If you’re being treated as a 1099 contractor but work like an employee, that may be misclassification — see workplace rights.

Get help

Free tax help (VITA) by state — volunteers trained on ITIN + Schedule C
IRS offices by state — in-person help, including ITIN
Tax software that supports Schedule C + ITIN

Last verified: 2026-06-04. General information, not tax advice. Self-employment tax rules and thresholds change — verify on IRS.gov or with a CPA or Enrolled Agent.

Frequently asked questions

Do I have to pay taxes on 1099 / self-employment income if I have an ITIN?

Yes. If you earn income as an independent contractor, gig worker, or business owner, you must report it on a federal return regardless of immigration status, using your ITIN if you don’t have an SSN. You report the income (and your expenses) on Schedule C and pay self-employment tax on the net profit via Schedule SE.

What is self-employment tax and how much is it?

Self-employment tax is 15.3% of your net self-employment profit — 12.4% for Social Security (up to an annual wage cap) plus 2.9% for Medicare. It’s the self-employed version of the Social Security and Medicare taxes an employer would normally split with you. You can deduct half of it on your return.

Do I have to make quarterly estimated tax payments?

If you expect to owe $1,000 or more for the year, the IRS generally expects quarterly estimated payments using Form 1040-ES (typically due in April, June, September, and January). Paying quarterly avoids an underpayment penalty. Many self-employed ITIN filers set aside roughly 25–30% of each payment for taxes.

Can I deduct business expenses with an ITIN?

Yes. On Schedule C you subtract ordinary and necessary business expenses (supplies, mileage, tools, phone, a home-office portion, etc.) from your gross income — you pay tax only on the net profit. Keep receipts and a simple log; good records lower your tax legally.

Do I need an EIN if I'm self-employed with an ITIN?

Not always. A sole proprietor can often file using just the ITIN. You’d want a free EIN (Employer Identification Number) if you hire employees, form an LLC or corporation, or want to give clients an EIN instead of your ITIN. You can request an EIN with Form SS-4; an ITIN holder can be the responsible party.

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General information, not legal advice. MigrantUSA is an independent publisher and is not a law firm; using this site does not create an attorney-client relationship, and this content is not a substitute for advice from a licensed attorney about your specific situation. US federal, state, and local government procedures, fees, and forms change. Always verify current details directly with the relevant agency before acting. For immigration, tax, or other legal matters specific to your situation, consult a licensed attorney or BIA-accredited representative.