How Do You File Taxes As A Contract Worker?
As a contract worker, you will be responsible for paying taxes during the year. Estimated Tax and Self-Employment Tax may be paid quarterly or annually depending on the amount you earn. Maintain accurate payroll records during the year to make paying taxes easier. Refer to IRS.gov to remain updated on the latest tax laws and regulations that pertain to contract workers. Fill out and submit a 1099 form to employers before performing any work. This form will be used to verify how much the employer paid you for the work completed. You will receive a copy of this form at the beginning of tax season, usually by the end of January. File and pay Estimated Tax quarterly throughout the year. This tax is essentially income tax that would have been taken out of your paycheck had you worked exclusively for one employer. File tax form 1040-ES if your business is a Sole Proprietorship, S corporation or Partnership. Use Form 1120-W if your business is a corporation. For more information, visit IRS.go
