Thank goodness for my accountant! There’s a lot to learn and know about filing your taxes as an independent contractor and/or owning a small business.
Click to download the IRS forms you’ll need if you’re an independent contractor and/or use independent contractors for services, such as proofreading, scoping, etc. Once you’ve paid $600 within a year, you will have to report the payments made to the IRS and the state, as well as give the forms to the subcontractor you use. Those payments are all tax deductible at the end of the year.
A 1099 Form reports income from self-employment earnings, interest, and dividends.
There are various forms for the different types of income you may receive throughout the year other than the income you generate from your employer. That person or entity who pays you is responsible for filling out the correct 1099 form and sending it to you by January 31st.
For most workers who earn a salary, their employer reports their earnings on a W-2 form. However, like most reporters out there, you’re an independent contractor or self-employed, so you will receive a 1099 form from each agency, client, or “employer” that pays you at least $600 during the tax year. So for our proofreaders and scopists that we reporters love so much, it’s our job to send them their income forms if they invoiced more than $600 throughout the year before January 31st deadline.
The W-9 – request for taxpayer identification number and certification
We’ve all had to fill these guys out when we start with a new firm. It’s for the office’s purposes to make sure they’re accurately making payments to you, i.e., the correct EIN number, if you’re incorporated, or your TIN, aka your Social Security number.