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hi Im mark free tax com if you work as an independent contractor you must report all your earnings on your tax return just like an employee would do but there are a few ways you can report your form 1099 miscellaneous earnings if youre independent work is regular frequent continuous and intended to make a profit youll be treated as self-employed by the IRS and you must report your income online one of the Schedule C form and attach it to your form 1040 youre also responsible to pay any Social Security and Medicare taxes which youll calculate and file on Schedule E if youre considered self-employed you have the advantage of claiming more deductions on your Schedule C form that are related to your profession if you have occasional income that is neither regular frequent continuous or intended to make a profit then youre not considered to be self-employed you will not be responsible to pay any Social Security and Medicare taxes on this income this income should be reported on Sched