If your employer provides an office for you, you can't deduct your office unless you are required to work at home. Even if your home office qualifies for this deduction, the amount may be limited if expenses from your home office exceed gross income earned from your home office. Consult IRS Publication 587 for the rules on the deduction limit. An employee is generally subject to the business's instructions about when, where, and how to work. An employee tends to be trained in a particular manner, while independent contractors use their own methods.
Independent contractors are more likely to have unreimbursed expenses than employees are.
An independent contractor is usually paid by the job. An independent contractor can make a profit or loss. Written contracts describing the relationship the parties intended to create. Whether the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay. The permanency of the relationship.