Being self-employed in Kansas comes with a unique set of responsibilities, especially when it comes to taxes. Navigating the tax landscape can be daunting, but understanding the basics can make the process smoother. This guide will walk you through the essentials of handling self-employed taxes in Kansas, ensuring you're well-prepared to meet your obligations.
Self-employed taxes refer to the taxes that individuals must pay when they work for themselves. Unlike traditional employees, self-employed individuals are responsible for both the employer and employee portions of Social Security and Medicare taxes. This is often referred to as the self-employment tax.
In Kansas, self-employed individuals must also consider state taxes. While the state does not have a specific self-employment tax, income earned through self-employment is subject to state income tax. Understanding these requirements is crucial for staying compliant and avoiding penalties.
It's important to note that self-employed taxes are not withheld throughout the year like they are for regular employees. Instead, self-employed individuals must make estimated tax payments quarterly. This requires careful planning and budgeting to ensure you have enough funds set aside to cover these payments.
To calculate your self-employment tax, you first need to determine your net earnings. This is done by subtracting your business expenses from your total self-employment income. Once you have your net earnings, multiply that amount by 92.35% to find your taxable income for self-employment tax purposes.
Next, apply the 15.3% tax rate to your taxable income to determine your self-employment tax liability. Remember, this tax is in addition to any federal and state income taxes you may owe.
As a self-employed individual, you're required to make estimated tax payments throughout the year. These payments cover your self-employment tax, as well as your federal and state income taxes. The IRS typically expects these payments to be made quarterly.
To calculate your estimated tax payments, use Form 1040-ES, which includes a worksheet to help you estimate your tax liability. It's important to make these payments on time to avoid penalties and interest charges.
In Kansas, you'll also need to make estimated state income tax payments. The Kansas Department of Revenue provides resources and forms to help you calculate and submit these payments.
One of the benefits of being self-employed is the ability to deduct business expenses from your taxable income. Common deductible expenses include office supplies, travel expenses, and advertising costs. These deductions can significantly reduce your tax liability.
It's important to keep detailed records of your expenses throughout the year. This documentation is essential for accurately calculating your deductions and supporting your claims if you're ever audited.
If you work from home, you may be eligible for the home office deduction. This deduction allows you to deduct a portion of your home expenses, such as rent or mortgage interest, utilities, and insurance, based on the percentage of your home used for business purposes.
To qualify for the home office deduction, your home office must be used exclusively and regularly for business. The IRS provides specific guidelines for calculating this deduction, so it's important to review these requirements carefully.
Business mileage is one of the most valuable and commonly used deductions for self-employed individuals and independent contractors. The IRS allows you to deduct the miles you drive for work-related purposes, including client meetings, job sites, and business errands.
For 2025, the mileage rate is worth 70 cents in deductions, adding up quickly to significant tax savings. Whether you’re delivering for a gig platform, running a small business, or freelancing, keeping accurate mileage records is key to claiming this deduction. The IRS requires detailed logs of your trips, including dates, destinations, and purposes. Tracking your miles not only helps you reduce your taxable income but also ensures you stay compliant with IRS rules and avoid audit risks. With tools like Everlance, you can automate your mileage tracking and generate IRS-compliant reports, taking the guesswork out of this essential tax deduction.
Self-employed individuals can also deduct the cost of health insurance premiums for themselves and their families. This deduction is available even if you don't itemize your deductions, making it a valuable tax-saving opportunity.
To claim this deduction, you must not be eligible for employer-sponsored health insurance through another job or your spouse's employer. The deduction is limited to your net self-employment income, so it's important to calculate this amount accurately.
When it comes time to file your taxes, you'll need to complete several forms. For federal taxes, you'll use Form 1040, along with Schedule C to report your self-employment income and expenses. You'll also need to complete Schedule SE to calculate your self-employment tax.
It's important to file your federal taxes by the April 15th deadline to avoid penalties. If you need more time, you can request an extension, but remember that any taxes owed are still due by the original deadline.
In addition to your federal tax return, you'll need to file a Kansas state tax return. Use Form K-40 to report your income and calculate your state tax liability. Kansas follows the federal tax deadline, so be sure to file your state return by April 15th as well.
Kansas offers an e-file option for filing your state taxes, which can simplify the process and help ensure accuracy. If you owe state taxes, you can make payments online through the Kansas Department of Revenue's website.
Handling self-employed taxes in Kansas requires careful planning and attention to detail. By understanding your tax obligations, making timely estimated payments, and taking advantage of available deductions, you can manage your taxes effectively and keep more of your hard-earned income. Whether you choose to tackle your taxes on your own or seek professional help, staying informed and organized is key to success.
Everlance tracks your miles and logs expenses automatically for tax season so you can focus on your work, not your mileage log
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Brad Thibeau is the Head of Growth & Partnerships at Everlance. Brad has worked at Everlance since 2021 with a focus on helping self employed people save time and money on their taxes.
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