Tax Preparation for Independent Contractors & Subcontractors
You do the work. We’ll help prepare the taxes.
When you’re paid as a contractor instead of an employee, no one withholds tax for you, and your business income and expenses go on your own return. We prepare your Form 1040 with Schedule C, so the work you’ve done is reported correctly and the expenses you can support are claimed.
What we prepare and report
- Contract income reported on Form 1099-NEC, from one client or many, plus any income you received without a 1099.
- Schedule C showing your business income and eligible business expenses.
- Schedule SE for self-employment tax on your net earnings.
- Equipment and vehicle forms when they apply, such as depreciation on tools or a work truck.
Common tax considerations
Multiple clients
Clients who pay you above the IRS reporting threshold are generally required to send a 1099-NEC, but your income is reportable whether or not one arrives. We reconcile the forms against your own records so nothing is missed or counted twice.
Business expenses
Tools, equipment, supplies, licenses, insurance, and other ordinary and necessary costs of your work may be deductible. What qualifies depends on how the item is used in your business and on your records; personal costs aren’t deductible.
Mileage and vehicle costs
If you drive between job sites or to pick up materials, you may be able to deduct either the IRS standard mileage rate or your actual vehicle expenses, based on the business share of your driving. Commuting from home to a regular workplace generally doesn’t count. A mileage log is the record that supports this.
Self-employment tax and estimated payments
Self-employment tax covers Social Security and Medicare and generally applies once your net earnings reach $400. Because nothing is withheld, many contractors make quarterly estimated payments. We’ll show you what you owe and help you plan next year’s payments.
Documents and records to gather
- All Forms 1099-NEC (and any 1099-K)
- Your own income records or invoices
- Receipts or statements for business expenses
- Mileage log or vehicle expense records
- Purchase records for tools and equipment
- Estimated tax payments you made
- Last year’s tax return, if you’re new to us
- Health insurance premiums you paid yourself
Related services
Delivery Drivers
App-based delivery income and vehicle expenses.
Learn more →Other Sole Proprietors
Owner-operated businesses and single-member LLCs.
Learn more →Deductions depend on your eligibility and records; we don’t promise a particular refund or savings. You receive a quote after we review your intake and documents.