Which document is issued to an independent contractor for tax purposes?

The correct document issued to an independent contractor for tax purposes is the 1099 form. Independent contractors are typically not employees of a company; therefore, they do not receive a W-2, which is used for reporting wages paid to employees. Instead, the 1099 form is specifically designed to report income that is earned by non-employees, such as independent contractors and freelancers.

When an independent contractor earns $600 or more in a tax year from a single client, that client is required to issue a 1099 form, which details the amount paid to the contractor. This form informs the IRS about the income the contractor has received, which the contractor must report on their tax return.

Form 1040 is the standard individual income tax return form that taxpayers, including independent contractors, use to report their income but does not specifically apply to independent contractors alone. Schedule C is used to report profit or loss from a business operated by a sole proprietor, which independent contractors can use to report their income, but it is not the document issued by clients for tax purposes.