Reporting independent contractor taxes is done a bit differently than a W-2 employee. The IRS requires you to report your business profits and losses on Schedule C
. You'll attach this along with your personal income tax return, Form 1040
. Any income you earn needs to be reported to the IRS along with taxes on that income. Factoring in deductions will help lower the taxable income and ultimately the taxes you'll need to pay.
You'll use Schedule SE
to report your self-employment taxes and attach it with your tax return. As an independent contractor, if you expect to owe at least $1,000 in taxes in a year, you're required to make estimated quarterly tax payments.