![]() It also confirms your intent of work in the event that a client wants to claim you as an employee rather than a contractor. The IRS says that making services available to the general public on a regular and consistent basis demonstrates autonomy in the nature of the work. Keeping copies of past service advertisements and listings is yet another easy way to formally and legally prove a contractor-client relationship for independent contractors. Service advertisements and listings (forever) Working for multiple clients is also part of the IRS’s Twenty Factor Test, and business cards provide evidence that you are not controlled by a single employer. Keeping business cards can help secure relationships, as you never know when one of those contacts will come in handy. ![]() Unfortunately, independent contractors collect dozens of business cards every month that are habitually trashed or misplaced. At any given moment, there’s a chance that you will stumble across your next great project, partner, or client. Business cards (forever)īeing a successful independent contractor requires agile networking skills. Regarding car expenses, the gas mileage rate was 62.5 cents per mile for the last 6 months of 2022. The mileage rate for 2023 is 65.5 cents per mile. There are plenty of travel miles that qualify, including car expenses for business travel to and from airports and hotels, business meals, errands and supply runs, travel to client offices, and to and from business meals. They can also be used for travel-related tax deductions. Like any good expense tracking habit, keeping travel mileage logs ensures protection against tax audits and business disputes. In the event of an IRS audit, these invoices will help prove your status as a contractor. Invoice statements also verify that you are subject to profits and losses, which is one of the factors in the Twenty Factor Test for an independent contractor. It’s recommended to keep key business ledgers like invoices for seven years, and for good reason, too! It’s the best way to protect your contracted accounts against a conflict with a client project. Bonus infographic: 7 useful documents every independent contractor should keep.How much should independent contractors be expected to pay in taxes?.Tracking 1099 expenses: How do I keep track of taxes as a 1099 contractor?.What are the forms you need when hiring an independent contractor?.How do I fill out Form 1040 for independent contractors?.How do you file taxes as an independent contractor?.Frequently asked questions about what to keep track of as an independent contractor.Professional licenses and insurance certificates (forever, or until expiration)
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