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Level 5
February 25, 2023
Question

Independent Contractor

  • February 25, 2023
  • 1 reply
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I work for a company that pays me a monthly salary as an independent contractor. I understand that I am considered to be self-employed. My question is do I "materially participate". I have been reading info about it, but I am still not sure, as all requirements do not apply to me. This is my second year of working part time. Do I choose Yes or No?

 

Thank you!

1 reply

Level 2
February 25, 2023

If you are working for an hourly rate, or for a "salary," you ARE materially participating.  This is distinguished from investment-type income. 

terimac4Author
Level 5
February 25, 2023

Thank you! That is what I thought, but I wasn't sure. Appreciate your time!