Which tax form does an independent contractor typically receive for tax reporting?

• A. 1099
• B. W-2
• C. 1040
• D. 941

Answer: (A)

Independent contractors are self-employed, so payments for their services are reported on a Form 1099-NEC. This form is issued by clients who paid you at least $600 during the year and is used to document nonemployee compensation to the IRS and to you. You then report this income on your tax return, typically on Schedule C with Form 1040, and pay self-employment tax via Schedule SE.

The other forms serve different purposes: a W-2 is for employees’ wages and withholding, not for contractors; Form 1040 is the individual income tax return you file (not a reporting document from a payer); Form 941 is an employer’s quarterly payroll tax return. So the form you typically receive from clients for reporting payments as an independent contractor is the 1099 (specifically the 1099-NEC).