TurboTax FAQ
TurboTax FAQ
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Am I an employee or an independent contractor?

For tax purposes, it’s based on how you are paid and the type of year-end form you receive from the person who paid you.

If you’re an employee:

  • Social Security and Medicare taxes (FICA) were deducted from your paycheck each payday.
  • You got a W-2.

If you’re an independent contractor:

  • The checks you received were for the full amount you earned, nothing was deducted for FICA.
  • You got a 1099-MISC with an amount in Box 7 (Nonemployee compensation).

Independent contractors are considered self-employed, and their net income or loss is calculated on a Schedule C.