Independent Contractors

An independent contractor or self-employed individual should report income on Schedule C (Form 1040) Profit or Loss From Business. You may need to file other schedules and forms, including Schedule SE (Form 1040) Self-Employment Tax on income from a trade or business. You must report all income, even if you did not receive a Form 1099-MISC Miscellaneous Income. See IRS Instructions for Schedule C for more information.

To enter or edit Schedule C in the TaxAct program, go to our Schedule C - Entering Sole Proprietorship in Program FAQ.

If you received a Form 1099-MISC instead of a W-2, the payer of your income did not consider you an employee and did not withhold income tax or social security and Medicare tax. You are treated as an independent contractor for tax purposes, and this income is considered self-employment income. Go to the IRS Form 1099 NEC & Independent Contractors FAQ webpage, and the recipient instructions on page 5 of Form 1099-MISC for more information. If you are not sure whether you are an independent contractor or an employee, go to our Employee or Independent Contractor FAQ.

To enter or edit information reported to you on Form 1099-MISC, Box 14, go to our Form 1099-MISC - Entering Nonqualified Deferred Compensation in Program FAQ.

Related Links

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