Independent contractors include doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, auctioneers, outside sales agents, etc., who are in an independent trade, business, or profession in which they offer their services to the general public. Independent contractors are not employees.

The general rule explains that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not how it will be done. For more information on determining whether you are an independent contractor or an employee, see "Employee or Independent Contractor?" in Chapter 2 of Publication 15-A, Employer's Supplemental Tax Guide. Publication 15-A is available for download, or you may request a copy by calling 800-829-3676.

You are self-employed if you carry on a trade or business as an independent contractor. A trade or business is generally an activity carried on for a livelihood or in good faith to make a profit. Income earned by a person who is working as an independent contractor is self-employment income.

You do not have to carry on regular full-time business activities to be self-employed. Part-time work may be self-employment.

For information on determining whether you are carrying on a business or a hobby, see "Not-for-Profit Activities", in Chapter 1 of Publication 535, Business Expenses. Publication 535 is available for download, or you may request a copy by calling 800-829-3676.

An independent contractor must report the income and expenses from the business or profession on Form 1040, Schedule C, Profit or Loss From Business. Form 1040, Schedule C-EZ, Net Profit From Business, may sometimes be used instead of Schedule C.

Figure your self-employment tax on Form 1040, Schedule SE, Self Employment Tax.

If you earn or receive income during the year that is not subject to withholding, or if you do not have enough income tax withheld, you may have to pay estimated tax.

For more information about sole proprietorships, refer to Publication 334, Tax Guide for Small Business. For more information on estimated tax, refer to Chapter 2 of Publication 505, Tax Withholding and Estimated Tax. Publication 334, and Publication 505 are available for download, or you may request a copy by calling 800-829-3676.

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