If you are an independent contractor (remote work from home for an online company) did you check the box "I didn't actively participate in the operation of this business"

3 replies
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I don't understand if "operation of this business" means the company I am working for or if my self employment is considered a business?

BillM223Answer

Level 15

Expert Reviewed

An independent contractor by definition is actively participating in the operation of the business.

The "business" being referred to here is YOUR business which is providing services to some other business (the online company in this case).

You'll just need to get used to the idea that the work you do as an independent contractor is a "business" in the eyes of the IRS.

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BillM223Answer

Level 15

Expert Reviewed

An independent contractor by definition is actively participating in the operation of the business.

The "business" being referred to here is YOUR business which is providing services to some other business (the online company in this case).

You'll just need to get used to the idea that the work you do as an independent contractor is a "business" in the eyes of the IRS.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

dnieves776Author

Level 2

Thanks for the quick answer, it really helps. This is my first year as an "independent contractor".

VolvoGirl

Level 15

Yes you are the owner of your own self employment business. You are in business for yourself. Use your own info. The people or company that pays you is your customer or client. You are considered to have your own business for it. YOU are the business.

You need to fill out schedule C for self employment business income and pay self employment tax in addition to regular income tax on it. The SE tax is to pay Social Security and Medicare tax that wasn't taken out like on a W2.

You use your own name and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is at risk. After you put in your income and expenses if your net profit is $400 or more you will pay 15.3% for 2013 Self Employment tax in addition to your regular income tax. The Schedule SE will be automatically filled out for it.

You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to the Premium version.

How to enter income from Self Employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

Turbo Tax Self Employed Tax Hub
https://turbotax.intuit.com/personal-taxes/self-employment-taxes

Turbo Tax Self Employment info
https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...