Being a self-employed filmmaker gives you the freedom to choose your projects, set your schedule, and negotiate your pay. But with that independence comes responsibility, including managing your own taxes and finances. This guide breaks down everything film freelancers need to know to stay organized and stress-free during tax season.
Understanding Freelance Taxes
As a self-employed freelancer, you’re considered your own business. That means you’re responsible for reporting your income and paying taxes directly to the IRS. You’ll need to register as self-employed, track your income, and file a yearly return.
In the U.S., you must file taxes if you earn more than $12,950 per year. The tax year runs from January 1 to December 31. Freelancers pay both income tax (10–37%) and a self-employment tax (15.3%), which covers Social Security and Medicare unless you have private healthcare.
Clients will typically send you a 1099-NEC form (or 1099-K for digital payments like PayPal). These are also submitted to the IRS, but even if you don’t receive one, you must still report all your income as a freelancer.
Tracking Expenses
As a freelancer, you only pay tax on your profit—that’s your total income minus business expenses. Keeping accurate records helps lower your taxable income and makes filing easier at the end of the year.
Here are common deductible business expenses for filmmakers:
- Travel, fuel, and parking costs for work
- Office costs — stationery, rent, phone bills, or software
- Equipment purchases, rentals, and repairs
- Specialist clothing or safety gear
- Advertising, marketing, and website expenses
- Training or professional development courses
Use a spreadsheet or accounting app to track expenses, and keep digital receipts in case of an IRS audit. Staying organized saves time and money when tax season arrives.
Managing Extra Costs
Freelancers don’t get sick pay, paid time off, or employer benefits—so you’ll need to plan ahead. Your self-employment tax contributes to Social Security and Medicare, but it’s smart to save for additional expenses, too:
- Retirement: Save at least 10% of your income for the future.
- Healthcare: Consider private coverage if you’re not insured elsewhere.
- Student Loans: Budget for repayments if you have them.
- Union Support: Film unions can offer advice on pensions and tax planning.
Getting Paid
To get paid for your work, you’ll need to send an invoice after completing each project. It’s a one-page document that lists what you did, how much you’re owed, and your payment details.
Most clients pay within 30 days, but always agree on payment terms before starting. Your invoice should include:
- The word “Invoice” clearly displayed
- Date of the invoice
- Your name and address
- Your client’s name and address
- Short description of the work
- Total amount due
- Payment terms (e.g., within 30 days)
If a client pays late, follow up politely by resending the invoice, then call or email again if needed. As a last resort, you can send a formal letter or pursue small claims court, but clear communication upfront usually prevents issues.
Download a free invoice template from our film production documents library.
Filing Your Taxes
Self-employed filmmakers only need to file taxes once a year. If you stay organized, it can take less than an hour. You can pay all at once or set up a payment plan through the IRS.
Set aside 20–30% of your monthly income for taxes and expenses to avoid surprises. And if you’d rather not handle the numbers yourself, hiring an accountant can be a great investment.
Managing freelance taxes and invoicing gets easier every year—especially when you stay proactive, plan ahead, and treat your film career like a business.
