The Social Security Administration uses the information from Schedule SE to calculate your benefits under the Social Security program. Schedule SE: Use Schedule SE to figure out the tax due on your net self-employment earnings.All taxpayers who would have used Schedule C-EZ will need to use Schedule C from now on to report income or loss from a business you operated or for which you acted as the sole proprietor. Schedule C or Schedule C-EZ: As of tax year 2019, Schedule C-EZ is no longer in use.You would also use this schedule if you have other payments you need to include in your return. Schedule 3: Use Schedule 3 if you need to claim any credit that you didn’t claim on Form 1040, including foreign tax credit, education credit or general business credit.Schedule 2: Use Schedule 2 if you owe other taxes, such as self-employment tax, household employment taxes or if you need to make an excess advance premium tax credit repayment.Schedule 1: Use Schedule 1 if you have additional income - such as unemployment compensation or prize or award money - and deductions to claim, including student loan interest, self-employment tax or educator expenses.You may also need to fill out one of the numbered schedules listed below if your tax return is more complicated: Form 1040: Form 1040 is the main form you’ll need to file your taxes.Since withholdings and deductions aren’t deducted from an independent contractor’s income, you’ll need to use specific tax forms and schedules to complete your tax return, including: Because independent contractors are considered self-employed, the income they receive doesn’t have federal income taxes, Social Security or Medicare deducted from it. What is an independent contractor?Īn independent contractor is someone who works for another person or company, but not as an employee.
To help keep you on top of your finances, here are some tax resources for individual contractors. As a self-employed independent contractor, you are required to pay federal income taxes, Medicare and Social Security taxes on the money you earn from your customers or clients. If you work for yourself and are not employed with another company, the way you handle taxes is much different from how an employee submits their taxes. Most independent contractors operate as a sole proprietorship, limited liability company (LLC), partnership or S corporation.
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