{"id":20432,"date":"2021-01-16T12:00:00","date_gmt":"2021-01-16T18:00:00","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/"},"modified":"2025-03-20T17:13:21","modified_gmt":"2025-03-20T22:13:21","slug":"independent-contractors-tax-filing","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/small-business\/self-employed\/independent-contractors-tax-filing\/","title":{"rendered":"Filing taxes as an independent contractor"},"content":{"rendered":"\n

Driving for Uber, delivering meals for DoorDash, designing websites as a freelancer, or even working as an independent distributor for a direct- or multi-level marketing company\u2014there are all kinds of independent contractor jobs available today. With this type of work comes a whole new set of tax responsibilities. If the concept of \u201cindependent contractor taxes\u201d is new to you, we encourage you to read on. There\u2019s a lot to consider. If you make $400 or more as an independent contractor, read on for important info you should know at tax time.<\/strong><\/p>\n\n\n

\n
\"Independent<\/figure><\/div>\n\n\n

First things first\u2014independent contractor taxes are different than when you\u2019re a W-2 employee<\/a>.\u00a0With independent contractor work (sometimes called gig work or self-employment), our clients will ask, \u201cWhy was no federal income tax taken out of my paycheck<\/a>?\u201d<\/p>\n\n\n\n

This is not a mistake. As an independent contractor, you\u2019re required to pay your federal and state (if applicable) taxes to the Internal Revenue Service (IRS) and state revenue departments on your own, so they are not withheld from your paycheck. Wondering how you\u2019re supposed to figure that all out?\u00a0Rest easy; we\u2019ve got you covered.\u00a0<\/p>\n\n\n\n

In this post, we\u2019ll touch on the difference between independent contractors and employees. Plus, we\u2019ll cover important elements of independent contractor taxes, such as self-employment tax<\/a>, quarterly estimated tax payments, and independent contractor tax deductions.<\/p>\n\n\n\n

\n\n\n\n

Working as an independent contractor after a job loss? Be sure to visit our\u00a0<\/em>Unemployment Resource Center<\/em><\/a>\u00a0for helpful articles and information.<\/em><\/p>\n\n\n\n

\n\n\n\n

How do you know if you\u2019re an independent contractor and not an employee?<\/strong>\u00a0It has to do with whether you or the business that pays you has more control over the details of your work. Consider these questions: Who has the right to control your behavior at work and the financial aspects of your job\u2014or is that something the company decides for you? If you\u2019re not sure, review our post on how to know if you\u2019re an\u00a0employee or independent contractor<\/a>.\u00a0<\/p>\n\n\n\n

What if you work as an employee AND an independent contractor?<\/strong> These additional tax responsibilities will generally still apply, so don\u2019t stop reading just yet. You\u2019ll thank yourself when it comes time to file.<\/p>\n\n\n\n

Independent contractor taxes: Important concepts<\/h2>\n\n\n\n

Don\u2019t wait until tax time to find out about your tax responsibilities and considerations. The more you can plan for these items, the easier it will be on you to file your tax return. Plus, you could also save yourself from a larger than expected tax bill.<\/p>\n\n\n\n