Which professionals are classified as independent contractors by the IRS?

Freelancers and service providers are classified as independent contractors by the IRS because they typically operate under a contract for services rather than an employer-employee relationship. This classification is characterized by the level of control and independence these professionals have over their work. Independent contractors usually set their own hours, have the flexibility to choose their clients, and handle the tax obligations associated with their earnings, unlike traditional employees who are subject to withholding by their employers and adhere to set schedules.

This distinction is important because it affects how taxes are filed and the rights and benefits available to the individual. For example, independent contractors are responsible for self-employment taxes and do not receive employer-sponsored benefits such as health insurance or retirement plans. In contrast, the other categories mentioned in the options represent individuals who typically work under the supervision of an employer or organization, thereby illustrating the key differentiator between independent contractors and traditional employees.