When it comes to who is an independent contractor, the IRS states that “the general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.”
Put another way, an independent contractor is somebody who gets paid on a “project by project” basis, whereby the employer pays to have a service or good delivered, but they only have a say in the final result and not how to process is carried out.
Depending on your business situation, it might make more sense to either file your taxes yourself or hire somebody for help. Here are some tips to help inform you on whether you should be flying solo or hiring some help.
Doing your independent contractor taxes yourself may save you a little bit of time in the short run, but if you happen to make a mistake or error in your filing, you could be subject to some hefty tax penalties.