What is required for an independent contractor to report their income?

For an independent contractor to report their income, Form 1099-MISC is the required document. This form is used to report payments made to individuals who are not employees. If a contractor earns $600 or more from a single client, that client is obligated to issue a Form 1099-MISC to the contractor, summarizing the total payments made throughout the year. The contractor then uses this information to accurately report their income on their tax returns.

While other options play roles in the tax reporting process, they serve different purposes. For instance, Schedule C is used to report profit or loss from a business operated by the self-employed individual, and it is completed after income has been reported, such as the amounts from Form 1099-MISC. Form W-2, on the other hand, is designated for employees, outlining wage information along with withholding amounts, which does not apply to independent contractors. Schedule SE is used to calculate self-employment tax based on net earnings but does not directly report income itself. Thus, the correct choice directly pertains to the reporting of income received by an independent contractor.