Social media managers: run your own books like a client account
Connect your bank to categorize retainers and expenses, estimate quarterly taxes, and plan retirement with free calculators.
Where social media managers typically get paid
W-2 or 1099?
Many social media managers work on monthly retainers as 1099 contractors, while agency and in-house roles are W-2 jobs. Contractors pay their own income and self-employment tax through quarterly estimates.
Tools are business expenses
Scheduling, design and analytics subscriptions, ad spend you pay yourself and are not reimbursed for, and the business share of your phone line are deductible business costs.
1099 thresholds changed
Clients only have to send a 1099-NEC for payments of $2,000 or more in 2026, and payment apps send a 1099-K only above $20,000 and 200 transactions. All income is taxable either way.
Self-employment tax
If your net earnings from self-employment (92.35% of net profit) are $400 or more, you owe 15.3% self-employment tax on them; the 12.4% Social Security part stops at the $184,500 wage base, counting any W-2 wages first.
Save as you bill
Self-employed people can use a Solo 401(k) ($24,500 employee deferral in 2026; $72,000 total additions cap, not counting catch-ups) or a SEP IRA (employer-style contributions on up to $360,000 of compensation), plus an IRA up to $7,500 ($8,600 at 50+).
Social media manager questions, answered
When are quarterly taxes due?+
Quarterly estimated payments for 2026 income are due April 15, June 15 and September 15, 2026, and January 15, 2027. You generally need to pay if you expect to owe at least $1,000 after withholding.
Can I deduct my phone and internet?+
You can deduct the business-use percentage of your phone and internet. Keep a reasonable record of how you split personal and business use.
Can I deduct a home office?+
If part of your home is used regularly and exclusively for business, the simplified home office deduction is $5 per square foot up to 300 square feet ($1,500 max).
Can I open a Roth IRA as a freelancer?+
Yes, if you have earned income. For 2026 you can contribute the full $7,500 ($8,600 at 50+) with modified AGI below $153,000 single or $242,000 joint; the amount phases down and ends at $168,000 single or $252,000 joint.
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