Colorado 1099 Contractors: What to Know Before Filing This Tax Season
If you worked as a 1099 contractor in Colorado in 2025, tax season hits differently.
There’s no employer withholding. No automatic refunds. No safety net if you get it wrong.
By late January/early February, most contractors are staring at a mix of 1099s, bank statements, and expense screenshots wondering the same thing: Did I set enough aside? Am I missing deductions? Am I about to get penalized?
If you’re freelancing, gigging, consulting, or running a one-person business in Arvada or anywhere in Colorado, this guide is for you. We’ll break down what actually matters right now, before you file — not generic advice, not IRS fluff.
1. First: What being a 1099 contractor really means (and why Colorado contractors get tripped up)
As a 1099 contractor, you’re considered self-employed. That means:
- No taxes were withheld from your pay.
- You’re responsible for both income tax and self-employment tax.
- You’re expected to make estimated tax payments during the year.
Colorado contractors often underestimate how fast this adds up because the state income tax rate feels low compared to other states. But when you combine:
- Federal income tax
- Self-employment tax (Social Security + Medicare)
- Colorado income tax
The total bill can easily land in the 25–35% range.
If you didn’t plan for that, you’re still on time. 2. Don’t file yet if you’re still missing forms
Late January/early February is not the finish line.
Many 1099 contractors rush to file early because they want it “done.” That’s how mistakes happen.
Before filing, make sure you have:
- All 1099-NEC and 1099-K forms (clients, platforms, payment processors)
- Accurate income totals (1099s don’t always match what actually hit your bank)
- Expense records that are complete, not guessed
Important Colorado-specific note:
If your income is reported incorrectly on a 1099 and you file without fixing it, Colorado will receive the same incorrect data the IRS gets. That can trigger state notices months later.
If something looks off, slow down and fix it first.