If you are asked to complete a Form W-9, most probably next year you will also receive a Form 1099-MISC for income that might be subject to self-employment tax.
Self-employed individuals generally pay income tax as well as self-employment tax (SE tax). Self-employment tax consists of two parts - Social Security and Medicare tax. It is similar to the Social Security and Medicare taxes withheld from the paychecks of most wage earners (W-2 employees).
You calculate your self-employment tax on Schedule SE and report that amount in the "Other Taxes" section of Form 1040. In this way, the IRS differentiates the SE tax from the income tax.
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