What income reporting form should an independent contractor sometimes receive from the person who paid for his services?

An independent contractor typically receives Form 1099-MISC from clients who have paid for their services, especially if the total payments exceed a certain threshold, which is generally $600 in a tax year. This form is used to report various types of income other than wages, salaries, and tips, which are reported on Form W-2. The 1099-MISC provides the IRS with information about the income earned by the contractor, helping ensure proper reporting and compliance on both the contractor's and the client's ends.

Unlike forms W-2, which are exclusively for employees, the 1099-MISC is designed to document payments made to independent contractors. Schedule C is a part of Form 1040 used to report profit or loss from a business, which an independent contractor will complete when filing their tax return, but it is not a document they receive from clients. Form 1040 is the standard individual income tax return form that summarizes overall tax obligations but does not serve the purpose of reporting income received from clients directly. Therefore, the correct answer clearly reflects the specific reporting requirements for payments made to independent contractors.