Tax Preparation: Independent Contractors
Being an independent contractor brings many benefits, from setting your own schedule to selecting your clientele. However, it also brings unique tax obligations. Understanding and effectively managing your taxes can have a significant impact on your financial health as an independent contractor. Understanding Your Tax Status Independent contractors are classified as self-employed by the IRS. This means they are responsible for their own income taxes, including the federal and state taxes, along with self-employment tax, which covers Social Security and Medicare taxes.