Do I have to pay tax on my independent contractor income?
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| 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.
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| 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, Your
Federal Income Tax. Please read this IMPORTANT
Editor's Note regarding navigating IRS publications with Adobe
Acrobat
Reader.
IRS publications can also be ordered by calling 1-800-829-3676. |
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