If you’re an online teacher, the IRS considers you an independent contractor. As a result, you are required to pay about 15.3% in taxes on your yearly income. Throughout the year, it’s prudent to set aside 15.3% from every paycheck into savings to avoid any shocks at tax season.
Unlike in-office teaching jobs in America, you may not receive a 1099 Form from your online teaching employer. (Your 1099 Form states your annual income.) As a result, we recommend keeping a spreadsheet of your earnings, so you aren’t scrambling to add up numbers.