Taxorly AI Tax Advisor
Answered June 4, 2026
As a freelancer, you may be eligible for the Qualified Business Income (QBI) deduction. For the 2026 tax year, this deduction allows you to exclude up to 20% of your qualified business income from federal income tax. Let's say you have a net profit of $100,000 from your freelance work. You may be able to deduct up to $20,000 (20% of $100,000) as a QBI deduction, which could save you around $4,400 in federal income taxes (assuming a 22% tax bracket). To qualify, your taxable income must be below $182,100 for single filers or $364,200 for joint filers. Keep in mind that the QBI deduction has phase-out limits and other requirements, so it's essential to review your specific situation. Try our QBI Deduction Calculator at taxorly.com/qbi-calculator.
⚠️ Consult a CPA for personalized advice.