When an Independent Contractor Must File Schedule C
Independent contractors file Schedule C to report their business income and expenses. Net profit (or loss) from Schedule C is carried to Form 1040, Line 12 .
If you're a sole proprietor, payments you make to independent contractors are entered on Schedule C, line 11, Contract labor.
Independent contractors may be subject to self-employment tax (social security and Medicare taxes) if Schedule C shows a profit of $434 or more.
Self-employment tax is social security and Medicare taxes for self-employed persons. Schedule SE, Self-Employment Tax is used to figure self-employment tax. Schedule SE and Schedule C are attached to Form 1040.
For Freelancers and independent Contractors
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- Pay your quarterly estimated taxes online.
- Export Schedule C to TurboTax at year-end for faster filing.
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Have an accounting or bookkeeping question? Email it to me.
- Return to the Independent Contractors Table of Contentsto find related links.