If you’re an independent contractor, you’re responsible for paying your own taxes. It’s challenging, especially if you’re new to the independent contractor game.
But don’t worry, we’re here to help. So, what do you need to do?
Well, here’s a quick overview of what you need to know about how to pay taxes as an independent contractor.
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How to Pay Taxes as an Independent Contractor
As an independent contractor, you are considered self-employed. This means that you are responsible for paying your own Social Security and Medicare taxes.
You will need to file a Schedule C (Form 1040) in order to report your income and expenses from your independent contracting work.
You will also need to pay estimated taxes throughout the year. Estimated taxes are essentially prepayments of your income taxes, and you will need to pay them if you expect to owe $1,000 or more in taxes for the year.
Remember, as an independent contractor, you are responsible for paying your own taxes. This is a bit confusing and daunting, especially if you’re new to the independent contractor game. But with a bit of planning and organization, it doesn’t have to be too difficult.
We hope this guide has helped you better understand how to pay taxes as an independent contractor. For more information on estimated taxes, visit the IRS website.
What Is an Independent Contractor?
An independent contractor is a person who contracts with another person or company to do a particular job or service. The independent contractor is not an employee of the company they are contracted with. Therefore, they’re not entitled to the same benefits as an employee (such as vacation pay, sick days, and health insurance).
Independent contractors are usually paid by the job, rather than by the hour. They are also responsible for their own independent contractor taxes, which is challenging, especially when new to the independent contractor game.
How Do I Pay Taxes as an Independent Contractor?
As an independent contractor, you file your taxes differently than a W-2 employee. First, start by calculating how much you earned for the year. Then, file a Schedule C (Form 1040) to report your income and expenses from independent contracting work.
You can file your freelance taxes alone, or use the help of a tax professional. To avoid feeling overwhelmed during tax season, put money aside during the year. That way, you’ll have your contractor taxes ready to go!
If you’re a contractor in Georgia, and you’re looking for extra resources to help you out, click the highlighted link.
Understanding How to Pay How to Pay Freelance Taxes
Well, that’s it for this article on how to pay taxes as an independent contractor. We hope you found it helpful. Freelance taxes aren’t as simple as W-2 taxes, but being your own boss is worth it! Well, that’s it for this article on how to pay taxes as an independent contractor. We hope you found it helpful. Freelance taxes aren’t as simple as W-2 taxes, but being your own boss is worth it!
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