Lexington, MA: 781.274.6600
Sunapee, NH: 603.763.0350
Inquiry Form
Tax Tips - Save on Taxes

Self-Employed Individuals

Self-employed individuals who work in the building trades, as consultants, instructors or real estate professionals, are usually compensated for their work as contractors rather than as employees. This means that no Federal income, Social Security or Medicare taxes, or State income taxes, are withheld from their compensation.

Such individuals should make estimated income tax payments on the net business income they earn quarterly. Otherwise, they may receive huge, unexpected income tax bills when their income tax returns are filed the following April. Please refer to the Sidebar Estimated Tax Payments.

Each business or individual for whom you work should ask you to provide a completed Form W-9. You can obtain a blank Form W-9 here: https://www.irs.gov/pub/irs-pdf/fw9.pdf. Once you’ve filled in and signed your Form W-9, you can provide a copy of the same completed Form W-9 to each business or individual for whom you work.

 

 

 

 

 

 

 

 

Return to Top

Home | Company | Clients | Services | Partners | Retirement | Testimonials | Tips | Resources | Contact
Copyright © 2010 - - All rights reserved. TwardyCPA.com & the TwardyCPA Logo are trademarks of Joseph T. Twardy, Jr., CPA, LLC.