As a FiveOwls instructor, you’ll be classified as an independent contractor (IC). This means you’ll be responsible for managing your own taxes and will receive a 1099 tax form at the end of the year if you earn over $600 from FiveOwls (as of March 2024).
Here’s what being an IC with FiveOwls entails:
- Flexibility and Ownership: You have the freedom to set your own schedule and create engaging classes that fit your teaching style.
- Tax Responsibilities: As an IC, you’ll be responsible for paying self-employment taxes, including Social Security and Medicare. We recommend consulting a tax advisor for specific guidance on your tax obligations.
- 1099 Tax Form: FiveOwls will provide you with a 1099 form at the end of the year to report your earnings for tax purposes (if you meet the $600 threshold).
Benefits of Being an Independent Contractor:
- Be Your Own Boss: Enjoy the flexibility and control over your work schedule and teaching approach.
- Growth Potential: Build your reputation as a skilled online instructor and attract more students over time.
- Tax Deductions: You may be eligible to deduct certain business expenses from your income taxes.
We encourage you to research the tax implications of working as an independent contractor before applying. Being an IC offers unique benefits and responsibilities. FiveOwls is here to support you in your teaching journey, but tax matters are best handled in consultation with a qualified tax professional.
Important Note: The 1099 threshold is subject to change based on IRS regulations. We recommend checking the IRS website for the most up-to-date information: https://www.irs.gov/businesses/understanding-your-form-1099-k
