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I am a 1099-NEC worker, by I work solely for one company; must I file taxes as an independent contractor?

Great question! The short answer is yes, you will need to file as an independent contractor and fill out a Schedule C with your return. The benefit to filing this way is that you get to reduce the income you earned by any business expenses you might have (cell phone bill, internet bill, home office supplies, etc).

However, it might be worth checking with the company you work for to see if they should actually be paying you as a W-2 employee. Here are some tests to verify:

  1. Does the company have control of your work schedule?
  2. Does the company dictate how you complete the projects you do for them?
  3. Does the company disallow you from working for competitor companies?

If you check yes to some or all of those questions, the company you contract for might have you miscategorized as a 1099-NEC when you should be W-2.

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Sarah York, EA

Sarah is a staff writer at Keeper Tax and has her Enrolled Agent license with the IRS. Her work has been featured in Business Insider, Money Under 30, Best Life, GOBankingRates, and Shopify. She has nearly a decade of public accounting experience, and has worked with clients in a wide range of industries, including oil and gas, manufacturing, real estate, wholesale and retail, finance, and ecommerce. Sarah has extensive experience offering strategic tax planning at the state and federal level. During her time in industry, she handled tax returns for C Corps, S corps, partnerships, nonprofits, and sole proprietorships. Sarah is a member of the National Association of Enrolled Agents (NAEA) and maintains her continuing education requirements by completing over 30 hours of tax training every year. In her spare time, she is a devoted cat mom and enjoys hiking, baking, and overwatering her houseplants.

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