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Do I have to pay tax on my independent contractor income?
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an independent contractor, subcontractors, public stenographers, auctioneers,
etc., who "have their own business" and work in an independent trade, business,
or profession in which they offer their services to the general public, are generally not
employees but rather an independent contractor. Their income is taxable and reportable on
Form 1040,
Schedule C. If you carry on a trade or business, except as an employee, you probably
have to pay self employment tax (FICA) on your self employment income on
your tax return. A trade or business
is generally an activity carried on for a livelihood or to make a profit.
Self employment can include work in addition to your regular full-time business
activities such as a side line business. It also includes certain part-time work that you
do at home or in addition to your regular job.
Figure net earnings on Form 1040,
Schedule
C. Figure your
self employment tax on Form 1040, Schedule SE.
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Related tax information
about an independent contractor |
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Self Employment Tax
Employee or Independent
Contractor?
Income Related Questions and Answers |
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IRS publications about an independent contractor:
For further tax information about an independent contractor see IRS
Publication 17, Your
Federal Income Tax. |
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Ask Julian Block your IRS and tax questions! |
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If you can't find the answer to your IRS or tax question in our
web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax
Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine. To
call Julian for a tax consultation click
here. |
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