Getting started with a system that offers the best online tax filing for independent contractors should be a simple and painless process. Consider looking for electronic filing software that provides:
- Intuitive entry-making
- Modular capabilities
- Affordability
Accuracy is additionally a major component of e-filing software. Tax software does the math and it will identify common errors that you can fix before you incur costly penalties from the Internal Revenue Service. The error rate among e-filed returns is 1% compared to the 21% error rate for paper returns. Advanced Micro Solutions’ 1099-etc E-Filer will help to reduce the likelihood of penalties while also being the most affordable solution on the market for users.
Steps for the Best Online Tax Filing For Independent Contractors
Taking the appropriate steps to report what you paid and then accurately filing the forms can feel overwhelming if you are used to outsourcing your tax responsibilities.
Step 1
Determine your worker status. Categorize yourself correctly, either as an employee or independent contractor. Filing Form SS-8 with the IRS will provide you with official confirmation.
Step 2
Gather independent contractor information. Completing your forms with time to spare is the best way to guarantee a positive tax filing experience for yourself in the next tax season. The best online tax filing for independent contractor forms should make gathering all of your details and figures straightforward. Tax filing software will also make it easier to maintain all the forms in your records for at least four years without taking up space or getting lost in filing cabinets.
Step 3
Understand the reporting thresholds and forms. Generating forms using tax filing software will eliminate the cost of buying materials while also simplifying what you know you need. The best software like our 1099-etc E-Filer lets users input information onto entry screens that look like the actual forms. An intuitive, menu-driven software takes out any guesswork and reduces the confusion about completing forms on your own for the first time.
Step 4
File your forms. Getting tax filing software means that you will no longer need to submit Form 1096 with a 1099-NEC form. Software like ours can be as simple as uploading your data to the IRS/SSA websites using the IRS “FIRE” system or the SSA “BSO”/”ACCUWAGE” system.
E-Filing with AMS Software
The best online tax filing for independent contractor forms will look different for each user. Our E-Filer options include: E-File Direct (add-on) or E-File Services.
E-File Direct
- Easy to create files in the program’s directory
- Simple process for verifying, viewing, and printing files
- Creates state W-2 files for states with electronic filing requirements
E-File Services
- Volume pricing rather than a flat fee
- Easy to file forms electronically with a third-party vendor
- Multiple service levels (based on time and budget requirements)
Not sure which option makes the most sense for your needs? Download a free 1099-etc Demo software and explore our modular capabilities and full-accounting suite of tools.