Hi Debra -
I have worked as an IC for 5 years now. I have some info. posted here
http://www.medicalbillingandmedicalcoding.com/remotemedicalcodingjobs.html that you might want to read.
As far as taxes go, you willfill out a W-9. At the end of the year you will receive a 10-99 and you will want to file a 1040 for taxes.
I would suggest holding about 30% of your gross aside for taxes until you know what type of deductions apply to you.
As an IC you are considered self employed so business expenses can be writted off as long as they follow all the rules.
Deductions can include coding books, computer, internet connection, office space and supplies, etc. Some rule apply though. Such as, if you write of the cost of the computer it must be a business only computer, and not for personal use as well.
If you have enough qualifying deductions you may find your return exceeds what you owe, but until you have worked though the first year and know what applies to you I would suggest holding some aside to be safe.
I found that the turbo tax home business software was useful if you do taxes your self. It's easy to use, outlines the regulations, and points out deductions you might have missed. You might want to consider using if for the first year if you do your own taxes
http://turbotax.intuit.com/small-business-taxes/
If you have anymore questions you can use the contact link at the bottom of my website (it's the quickest way to reach me).
http://www.medicalbillingandmedicalcoding.com/