How should I file my taxes since I am an independent employee who doesn’t get taxes automatically taken out of my earnings?

by Mark B. Zinman, CPA | Aug 07, 2018

I have no idea how to file my taxes since I am an independent employee for a delivery company, and they don’t automatically take taxes out of my earnings. Would someone be able to give me some pointers?

Regardless of whether you are an employee who received wages or an independent contractor who does not have taxes withheld, you still are required to file a tax return.
In the situation of an independent contractor, there are many more considerations in filing your taxes. The form used for an independent contractor is a Schedule C. Independent contractors are allowed to deduct the expenses they incur in doing their job. They are also required to remit the Social Security and Medicare taxes on their net Schedule C income. Additionally, consideration needs to be made on making estimated taxes throughout the year; because you are not an employee, estimated payments are the method in which an independent contractor would remit their taxes on an ongoing basis.
The best advice I can give someone in your situation is to find a competent tax preparer and allow them to assist you. While many individuals are capable of doing their own taxes, in this case, given the potential complexity and what appears to be limited experience, a tax preparer can walk you through the things you need to do and what deductions you may be eligible for.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Mark B. Zinman, CPA, is a managing partner with Zinman & Company in Southampton, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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