How to pay taxes on self employment income with an ITIN

This page explains how to report and pay taxes on money you earn working for yourself. It does not cover getting an ITIN or whether you may work. It is general information, not tax advice.

Am I self employed?

The IRS says you generally are if you run your own business, work as an independent contractor, or do gig or part time work for yourself. Examples: you clean houses, sell food, drive for an app, do repairs or take contract jobs and no employer takes taxes out of your pay.

If a boss controls how and when you work, you may really be an employee, with more rights. See Am I an employee or an independent contractor?

Earning money on your own without a work permit raises immigration questions too. Talk with an immigration attorney first, and see How to earn money working for yourself without a work permit.

Do I need to file?

Yes, if your net self employment earnings are $400 or more. Net means what you earned minus your work costs. Below $400, you may still need to file for another reason. A free tax helper can tell you.

Cash counts. Payment apps count. The IRS says you must report your income whether or not you get a tax form for it.

What forms will I use?

All of them go together with your yearly return, Form 1040. Use your ITIN where the form asks for an SSN.

Do you need an EIN? Only in some cases, like if you hire workers. See What is an EIN?

How much will I owe?

Two kinds of federal tax, plus California.

1. Self employment tax. This is Social Security and Medicare tax for people who work for themselves. It is 15.3%: 12.4% for Social Security and 2.9% for Medicare. You figure it on 92.35% of your net earnings. For 2026, the Social Security part stops after $184,500 of combined earnings. You owe it even though an ITIN does not qualify you for Social Security benefits. You can deduct part of this tax when you figure your income tax.

   Who owes it. The IRS says a resident alien owes self employment tax under the same rules as a citizen, and a nonresident alien generally does not. "Resident" here is a tax term, not an immigration status. It is based mostly on the days you were in the U.S.: under the IRS substantial presence test, at least 31 days this year and 183 days over three years, counted with a formula. Someone who has lived here all year for several years usually passes it. A tax helper can tell you which one you are.

2. Federal income tax, on your profit and other income, after deductions.

3. California income tax, on your state return.

Quick example of self employment tax only: you earned $20,000 and spent $4,000 on supplies and gas. Your net is $16,000. Multiply by 92.35%: $14,776. Multiply by 15.3%: about $2,261 in self employment tax, before any income tax. Your real numbers will differ.

Do I have to pay during the year?

Probably. No one takes taxes out of your pay, so the IRS expects you to pay as you go.

Federal: pay estimated tax if you expect to owe $1,000 or more when you file. For 2026, pay all of it by April 15, 2026, or in four parts:

California: pay estimated tax if you expect to owe at least $500 ($250 if married or in a registered domestic partnership and filing separately). California's split is different:

If a due date falls on a weekend or holiday, paying the next business day is on time. Late or missed payments can bring a penalty, even if you end up with a refund.

Not sure how much? Most people avoid the federal penalty if they pay at least 100% of last year's tax (110% if last year's adjusted gross income was over $150,000), or 90% of this year's. California uses a similar rule. The 1040-ES worksheet walks you through it.

How do I pay?

Federal, using the 2026 Form 1040-ES:

• By mail: a check or money order payable to "United States Treasury" with the payment voucher. Put your ITIN where the voucher asks for an SSN. From California, mail to Internal Revenue Service, P.O. Box 1300, Charlotte, NC 28201-1300. Never send cash.
• Online: the IRS lists Direct Pay from a bank account, your IRS online account, EFTPS and card payments (card companies charge a fee). The Direct Pay help page (checked October 21, 2026) asks individuals for a Social Security number and does not mention an ITIN. It also says you cannot use Direct Pay if you have never filed a federal return, or for a payment on your first return. If you are not sure an online option takes your ITIN, mail the voucher, or ask a free tax helper.

Your ITIN expired? The IRS says you can still make estimated payments before you renew it.

California, using Form 540-ES: mail a check or money order payable to "Franchise Tax Board" to Franchise Tax Board, P.O. Box 942867, Sacramento, CA 94267-0008, with your ITIN on it. Or pay online with the FTB's Web Pay from a bank account.

What tax papers will I get from clients?

Some clients and apps send you a form that reports what they paid you.

• Form 1099-NEC: for 2026 payments, a business generally sends one if it paid you $2,000 or more.
• Form 1099-K: payment apps and card processors send one when payments are over $20,000 in more than 200 transactions. You may get one below that too.

When a client asks for your tax number on Form W-9, the IRS says people with an ITIN must give it.

No form? You still report the money. Your own records are what count.

Who can help?

Contact them to confirm hours, languages and openings. Being listed here is not a referral or a promise of service.

• Free tax help (VITA): IRS certified volunteers. Find a site with the IRS VITA locator or call 800-906-9887. Ask whether the site handles self employment income and ITIN returns.
• More free options near you: Where to get free tax help if you file with an ITIN.
• Business coaching: Free small business coaching in the Bay Area.
• 211, where your county has it: free help finding local services.

Be careful with anyone who promises a refund that sounds too big, or who asks you to sign a blank return.

Is there a record sheet I can print?

Building your own work is hard and brave. Paying your taxes on time protects what you are building. One month at a time.