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As an independent contractor, vendor, freelancer or other individual receiving nonemployee compensation, you typically do not work for the person or business as an employee. If you dont work as an employee, youll typically have your earnings reported on a Form 1099-NEC and will need to prepare a W-9.
Employees fill out W-4 forms when they start a new job or need to make updates to their information, and they must receive a W-2 form from their employer for taxes. Independent contractors, on the other hand, fill out W-9 forms and receive 1099 forms.
Form W-9. If youve made the determination that the person youre paying is an independent contractor, the first step is to have the contractor complete Form W-9, Request for Taxpayer Identification Number and Certification. Form 1099-NEC. Filing Electronically.
If you paid someone who is not your employee, such as a subcontractor, attorney or accountant $600 or more for services provided during the year, a Form 1099-NEC needs to be completed, and a copy of 1099-NEC must be provided to the independent contractor by January 31 of the year following payment.
Employers are not required to complete Form I-9 for independent contractors. However, if the employer misclassifies an employee as an independent contractor, the employer may be held responsible and liable for failing to comply with Form I-9 employment eligibility verification and compliance.
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Answer: Independent contractors report their income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). Also file Schedule SE (Form 1040), Self-Employment Tax if net earnings from self-employment are $400 or more.
Youll probably need two documents when tax time rolls around: a W-9 and 1099-NEC. Weve included links to the appropriate documents below, but you should also mosey on over to the IRS website to make sure you have the latest versions.

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