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How do I file my taxes as an online teacher who is paid by a foreign company? Do I file as an independent contractor? Should I use the TurboTax home and business?
In 2015, I worked full-time from home as an online English teacher. I was paid by a foreign company, but I invested money into my future business (e.g. computers, microphones, websites subscriptions). In 2016, I will be offering services on my website as well. Because I was paid by a foreign company, I do not have the 1099-MISC form. I had no income from any other source. How do you suggest I file?
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How do I file my taxes as an online teacher who is paid by a foreign company? Do I file as an independent contractor? Should I use the TurboTax home and business?
You are self-employed, even if you didn't receive any 1099-misc forms. You would enter your income received and associated expenses in the business income section of TurboTax Home & Business.
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How do I file my taxes as an online teacher who is paid by a foreign company? Do I file as an independent contractor? Should I use the TurboTax home and business?
You are self-employed, even if you didn't receive any 1099-misc forms. You would enter your income received and associated expenses in the business income section of TurboTax Home & Business.
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How do I file my taxes as an online teacher who is paid by a foreign company? Do I file as an independent contractor? Should I use the TurboTax home and business?
It seems most people adopt the determination of independent contractor status at face value from the company paying them. There is more to the story.
https://justworks.com/blog/consequences-misclassifying-workers-independent-contractors
I would encourage reaching out to the IRS for a determination specific to your situation.
https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-defined
If you believe that you have been misclassified, you can ask the IRS for a determination.
https://www.irs.gov/pub/irs-pdf/fss8.pdf
This can result in substantial savings realized in the difference between the self-employment FICA tax and the employee share if it is determined that you are an employee. It also poses substantial financial risk to the erstwhile employer.
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