Taxes

Details about the tax aspects of your payments from Scholars

Taxes

You are responsible for your own tax compliance and reporting in the jurisdiction where you pay your taxes. We recommend you seek tax advice in your local country before you commence any freelance work with us or other platforms. You will receive an annual electronic 1099 document from iMerit, which outlines the amount we have paid to you as a contractor, which is also what we report on our corporate tax return.

In the vast majority of cases, we do not perform any tax withholding — you are paid the exact rate you agree with us in the SOW.

Visit your Invoices page in Worksuite to to access all of your past invoices.

For Scholars outside the US

If you’re a freelancer based outside of the United States but work for US-based clients, you typically won’t receive a 1099 form. Instead, you might be asked to fill out a W-8BEN form, which is used to confirm your foreign status and claim any tax treaty benefits. Always check with a tax professional in your country to understand your tax obligations.

For Scholars inside the US and its territories

What is a 1099?

If you’re a freelancer working with clients in the United States, you may have heard about the “1099” form. A 1099 is a tax form used in the United States to report income that you receive from clients or companies as an independent contractor. Unlike a traditional job where employees receive a W-2 form, freelancers receive a 1099 form to report the income they earned during the year.

Types of 1099 forms

There are several types of 1099 forms, but the one most relevant to freelancers is the 1099-NEC (Non-Employee Compensation). This form is used to report payments of $600 or more that you’ve received from a client.

The 1099 form is important because it’s used to report your income to the Internal Revenue Service (IRS) in the United States. It helps the IRS track the income you’ve earned so that you can accurately report it on your tax return.

How Does it Work?

• Receiving the Form: If you’ve earned $600 or more from a single client, they are required to send you a 1099-NEC form by January 31st of the following year. If you’ve worked for multiple clients, you may receive multiple 1099 forms.

• Reporting the Income: When you file your taxes, you’ll need to report the income listed on all of your 1099 forms. Even if you don’t receive a 1099 form from a client, you’re still required to report all the income you earned.

Do I need to pay taxes?

Yes, as a freelancer, you’re responsible for paying taxes on the income reported on your 1099 forms. This includes federal, state, and sometimes local taxes. You’ll also need to pay self-employment taxes, which cover Social Security and Medicare.