I am an independent contractor without my own business and I have a question about filing my independent contractor taxes. When filing taxes as an independent contractor, where do I enter my expenses? And can you clarify the difference between being an independent contractor and being self-employed?
An independent contractor is generally considered self-employed and is typically defined as a business owner or contractor who provides services to other businesses. According to the IRS, the general rule is that an individual is an independent contractor (self-employed) if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.
Additionally, the IRS views an independent contractor as a self-employed person. Therefore, earnings of a person who is working as an independent contractor are subject to Self-Employment Tax.
If you are filing taxes as an independent contractor you are treated like you have your own business – even if you did not formally start your own business. As a sole proprietor of that business, you should file your independent contractor taxes on a Schedule C to properly claim your income and related expenses.
Learn more about claiming expenses when self-employed with advice from the tax experts at H&R Block.
How does self-employment affect your tax rate? Learn how to file taxes for self-employment and get tax answers from H&R Block.
The gig economy and taxes go hand-in-hand. If gig work is your primary form of income, review these important tax tips from our H&R Block tax professionals.
Taxes are an essential part of maintaining a successful small business. Find helpful tax and accounting resources for small businesses from H&R Block's experts.