1099-MISC, Independent Contractors, and Self-employed
This is archived information that pertains only to the 2002 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
I work as an independent contractor, but I do not own a business and do not perform services in the name of a business. Can I file my tax return without filing Schedule C or Schedule SE?
The income you earn as an independent contractor generally will be considered income from self-employment and you will need to file Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or you may qualify to use Form 1040, Schedule C-EZ (PDF), Net Profit from Business. You will also need to file Form 1040, Schedule SE (PDF), Self-Employment Tax, if you had net earnings from self-employment of $400 or more.
References: 12.2 Small Business/Self-Employed/Other Business: Form 1099-MISC & Independent Contractors I work as an independent contractor, but I do not own a business and do not perform services in the name of a business. Can I file my tax return without filing Schedule C or Schedule SE?
The income you earn as an independent contractor generally will be considered income from self-employment and you will need to file Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or you may qualify to use Form 1040, Schedule C-EZ (PDF), Net Profit from Business. You will also need to use Form 1040, Schedule SE (PDF), Self-Employment Tax, if you had net earnings from self-employment of $400 or more. Since there is no withholding on your self-employment income, you may need to make quarterly estimated tax payments. This is done using a Form 1040ES (PDF), Estimated Tax for Individuals.
References: - Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship)
- Form 1040, Schedule C-EZ (PDF), Net Profit from Business
- Instructions for Form 1040, Schedule C
- Form 1040, Schedule SE (PDF), Self-Employment Tax
- Tax Information for Business
- Form 1040ES (PDF), Estimated Tax for Individuals
- Publication 1779 (PDF), Employee Independent Contract Brochure
- Publication 533 (PDF), Self Employment Tax
- Publication 505 (PDF), Tax Withholding and Estimated Tax
- Publication 334 (PDF), Tax Guide for Small Business
12.8 Small Business/Self-Employed/Other Business: Schedule C & Schedule SE I am self-employed. How do I report my income and how do I pay Medicare and social security taxes?
Your self-employment income is reported on Form 1040, Schedule C (PDF), Profit or Loss from Business, or on Form 1040, Schedule C-EZ (PDF), Net Profit from Business.
Your Medicare and social security taxes are reported on Form 1040, Schedule SE (PDF), Self-Employment Tax.
As a self-employed person, you pay your Medicare and social security taxes the same way you pay your income taxes. If you expect to owe less than $1,000 in total taxes, you can pay them when you file your income tax return. If you expect to owe $1,000 or more in total taxes, you will need to make estimated tax payments. These payments are made quarterly using Form 1040ES (PDF), Estimated Tax for Individuals. You will need to figure these taxes at the beginning of the year. To learn about figuring and making estimated tax payments, please refer to Publication 505 (PDF), Tax Withholding and Estimated Tax.
References:
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