| Topic | What You Need to Know |
|---|---|
| Employment Status | You are not a W-2 employee. You are self-employed and responsible for managing your own taxes. |
| Self-Employment Tax | You must pay 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare). Unlike employees, you pay the full amount (no employer contribution). |
| Tax Forms | You will file:
|
| Income Reporting | All income must be reported, even if you do not receive a 1099 (for example, earnings under $600). |
| 1099 Form | You will receive a 1099-NEC (not W-2) showing your earnings. Use this to verify your reported income. |
| Deductions | You can reduce taxable income through business expenses such as:
|
| Quarterly Taxes | You are required to make estimated tax payments 4 times per year:
|
| Why Quarterly Payments Matter | These payments cover both income tax and self-employment tax to avoid penalties at year-end. |
| Record Keeping | Keep accurate records of income, expenses, and receipts throughout the year. |
| Helpful Tip | Consider working with a tax professional or accountant to maximize deductions and stay compliant. |
