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October 27, 2021
Question

When to charge taxes on an independent contractor invoice?

  • October 27, 2021
  • 1 reply
  • 0 views

Hi,

I am a new self-employed doctor. I am more specifically a traveling relief doctor and provide medical services seeing patients at various hospitals. I provide invoices to the clinics that hire me and charge an hourly rate as well as a mileage rate. I pay monthly excise tax to my state Dept. of Revenue and pay quarterly self-employment taxes to the IRS. When I work, I only examine, diagnose, prescribe meds, and do occasional minor surgery. I utilize all the equipment and supplies of the clinic I am working at specifically. I do not sell anything or carry any personal inventory of meds, etc. My question is since I need to pay excise tax and self-employment tax do I need to also charge some sort of tax on my invoices in addition to my hourly rate and mileage rate? Thank you!

    1 reply

    Critter-3
    October 27, 2021

    Check with the states you work in to see if any kind of sales taxes are required on services provided ... most do not. 

    FernFAuthor
    October 27, 2021

    Will do. Thank you!