As an independent contractor, you may be required to file taxes with the IRS if you meet certain income thresholds. In general, if you earn more than $400 in a calendar year from your independent contractor work, you are required to file a tax return.
To determine your tax liability, you should report all income earned from your independent contractor work on your tax return. This includes income from each individual contract or client, as well as any self-employment income you may receive.
You will also need to pay self-employment taxes on your income, which includes contributions to Social Security and Medicare. The self-employment tax rate is currently 15.3% of your net income.
There may be additional reporting requirements depending on your specific industry or state laws. For example, if you are a real estate agent or broker, you may need to report your income to your state regulatory agency.
If you are unsure whether you need to file taxes as an independent contractor, it is recommended that you consult with a licensed tax professional. They can review your specific situation and provide guidance on your tax obligations.
By
