Tax Planning for the Self-Employed
According to the IRS, you are self-employed if you carry on a trade or business as a sole proprietor, as an independent contractor, as a member of a partnership, or if you are otherwise in business for yourself. You can be a full-time employee and still have self-employment income from a side job. To determine whether particular income is self-employment income (rather than employee wages, for example), you should look at the source of your income and the extent of your involvement in the activity.
If you are self-employed, you should understand the self-employment tax. You should also be aware of certain tax planning opportunities.