This is general information, not tax advice. Talk to a qualified tax professional about your own situation.
As an independent contractor you receive 1099 forms rather than a W-2, and no
tax is withheld for you, so income tax and self-employment tax are yours to
handle. Most contractors set aside a portion of every payment as it arrives and
make quarterly estimated payments, which avoids both a large bill and a penalty
at filing time. Keep business and personal money in separate accounts; every
downstream task, from bookkeeping to proving a deduction, gets easier.
Track mileage as you go rather than reconstructing it later, because vehicle use
is often the largest deductible expense a field tech has. Keep receipts for
tools, insurance, phone, certifications and supplies, and save every invoice and
payment record. When the 1099s arrive, reconcile them against your own records
before filing — the totals do not always agree, and it is easier to query a
figure than to amend a return.
- Separate business bank account
- Mileage log kept from day one
- Receipts stored digitally and backed up
- Quarterly estimated payment reminders set
- Copies of all 1099s received
- A tax professional who understands contractors
Read the full guide: Taxes and paperwork for 1099 technicians