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?

[sgswangstu]

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?

[TurtleAnna · Accepted solution]

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. 

[parkison]

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.