Generally, you are self employed if:
- You are in business for yourself (including a part-time business)
- You work as a sole proprietor or an independent contractor
- You are a partner of a partnership that carries on a trade or business
You are likely self-employed if you did not receive a W-2. Common jobs include:
- Driver for ride-sharing companies
- Driver for food delivery companies
- Childcare worker
- Homecare worker
- Domestic worker
- Street vendor
- Professional house cleaners
If you are self-employed, you have to pay income tax. You operate as an individual for tax purposes. You may also be required to pay estimated taxes quarterly.
This requires the individual to report all business income or losses on their individual income tax return (Form 540).