What should an independent contractor expect to receive if they earned over $600?

An independent contractor who earns over $600 from a business or individual should expect to receive a Form 1099-MISC. This form is specifically designed to report various types of income received by individuals who are not considered employees. It is issued by the payer to the contractor and is also sent to the IRS for their records.

A Form 1099-MISC includes important tax information, such as the amount of income earned, ensuring that independent contractors report this income accurately on their tax returns. This aligns with the IRS requirement to report income received for services rendered when payments exceed the $600 threshold.

In contrast, a regular paycheck is typically associated with employees, who receive W-2 forms that report their wages and the taxes withheld. An annual report from the IRS is not a standard document that independent contractors would receive. Lastly, while a Form W-2 is specifically for employees to report wages, it does not apply to independent contractors, who are responsible for their own tax liabilities and do not have taxes withheld from their pay.