Independent contractor forms

1. Introduction to Independent Contractor Tax Forms

Independent contractors, also known as freelancers or self-employed individuals, are responsible for handling their own taxes, which includes reporting their income to the Internal Revenue Service (IRS). To ensure accurate tax reporting, you'll receive specific tax forms from clients or businesses that have paid you for your services.

2. Form W-9: Request for Taxpayer Identification Number and Certification

Before you start working as an independent contractor for a client or business, you may be asked to fill out Form W-9. This form provides your taxpayer identification number (TIN) and certifies that you are not subject to backup withholding. Your client uses the information from this form to report payments made to you.

3. Form 1099-NEC: Nonemployee Compensation

If you earned $600 or more as an independent contractor for a client or business during the tax year, they are required to send you Form 1099-NEC. This form reports the total compensation you received for your services. You'll use this form when filing your income tax return to report your earnings.

4. Form 1099-MISC: Miscellaneous Income

While Form 1099-NEC is specific to nonemployee compensation, Form 1099-MISC covers various types of income. If you received payments for rent, royalties, or other types of income related to your self-employment, you may receive Form 1099-MISC. The IRS introduced Form 1099-NEC in 2020 to separate nonemployee compensation, so be aware that some clients may still use Form 1099-MISC.

5. Form 1096: Annual Summary and Transmittal of U.S. Information Returns

When a client or business sends you a Form 1099, they also send a copy to the IRS. Form 1096 is a summary form that the client submits to the IRS along with all the 1099 forms they issued. It's not a form you, as an independent contractor, have to fill out, but it's a part of the process.