Independent contractors pay self-employment taxes, and must set aside 25-33% of all earnings for quarterly or yearly taxes. Independent contractors can also deduct all business-related expenses on a Schedule C, and are highly encouraged to save receipts, track expenses, and track mileage.
Using a CPA or LTC to file taxes and manage finances correctly is also encouraged. While DANW's accountant (MC Franklin Tax LLC) is not taking new clients, she recommends any of the following people for tax preparation:
Rebecca McAllister at All Sorted
rebecca@allsorted.co
(971) 212-2468
Stan Christensen
stan@christiansentaxandaccounting.com
(503) 320-9572
Amy Lynne Thomson-Smith at Alts, LLC
bizconsulting101@yahoo.com
(503) 358-6488