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Form 1099-NEC & Independent Contractors | Internal Revenue Service.

Independent contractors generally 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 your net earnings from self-employment are $400 or more.

Work for multiple companies. People who simultaneously provide services for several unrelated companies are likely to qualify as independent contractors. Availability to public. If a worker regularly makes services available to the general public, this supports an independent contractor determination.

Individuals fill out the W-9 if they work as an independent contractor or as a freelancer. They might also file a 1099 with the IRS at the end of the year for each business they provided products or services.

4.2 The contents of the Independent Contractor Determination Form are based on common law factors currently used by the Internal Revenue Service to determine independent contractor status. The three categories include: financial control, behavioral control, and the relationship of the parties.

2. IRS Tax Form 1099-NEC. The IRS Form 1099-NEC is the independent contractor tax form used by businesses to report payments to a contract worker in the previous tax year. This tax form for independent contractors is filed with the IRS and is also provided to the contractor for reporting income.

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 Form 1099-NEC must be provided to the independent contractor by January 31 of the year following payment.