Monthly expenses list for contractor10/30/2023 Plus, you could also save yourself from a larger than expected tax bill. The more you can plan for these items, the easier it will be on you to file your tax return. Independent contractor taxes: Important conceptsĭon’t wait until tax time to find out about your tax responsibilities and considerations. You’ll thank yourself when it comes time to file. What if you work as an employee AND an independent contractor? These additional tax responsibilities will generally still apply, so don’t stop reading just yet. Consider these questions: Who has the right to control your behavior at work and the financial aspects of your job-or is that something the company decides for you? If you’re not sure, review our post on how to know if you’re an employee or independent contractor. How do you know if you’re an independent contractor and not an employee? It has to do with whether you or the business that pays you has more control over the details of your work. Working as an independent contractor after a job loss? Be sure to visit our Unemployment Resource Center for helpful articles and information. Plus, we’ll cover important elements of independent contractor taxes, such as self-employment tax, quarterly estimated tax payments, and independent contractor tax deductions. In this post, we’ll touch on the difference between independent contractors and employees. Wondering how you’re supposed to figure that all out? Rest easy we’ve got you covered. As an independent contractor, you’re 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. First things first – independent contractor taxes are different than when you’re a W-2 employee. With independent contractor work (sometimes called gig work or self-employment), our clients will ask “ why was no federal income tax taken out of my paycheck?”
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