Do I have to pay tax on my independent contractor income?

Lawyers, accountants, 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.

Related tax information about an independent contractor

Tax Directory Topics:
Self Employment Tax
Employee or Independent Contractor?
Income Related Questions and Answers

IRS publications about an independent contractor:
For further tax information about an independent contractor see IRS Publication 17,

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