Hello Indies, the IRS calls each of you an independent contractor.

Hi:

I have really enjoyed your site and put the information to good use.

You have probably already been asked this question, but I am wondering what the tax difference might be between being a 1099 or being a consultant.

Kristie from Kansas City, KS


Hello Kristie,

No difference. Please read on.

On the home page of my site I say: If you call yourself a 1099 Worker, Sole Proprietor, Freelancer, Subcontractor, Free Agent, or Self-employed then this site is for you. You're an independent professional -- I call you an indie.

And on the very first page of my book, Self-employed Tax Solutions, I say:
Artists,
astrologers,
psychologists,
personal trainers,
pet sitters,
writers,
real estate appraisers,
coaches,
creators of intellectual property,
graphic designers,
investment counselors,
carpenters,
information technology consultants,
Web site designers,
solo performers on the stage and in the business world …
each of you is unique. Yet despite your uniqueness you all have one thing in common -- you are all self-employed.

You may call yourself by another name -- sole proprietor, freelancer, indie, subcontractor, free agent, independent professional -- but to the taxing authorities all these descriptions mean the same thing. And the taxing authorities require all of you, no matter what you call yourselves, to follow the same rules.

I am pleased my site is useful to you. Thanks for letting me know.
June