Which tax forms are primarily used by freelancers or independent contractors to report their income?

Freelancers and independent contractors typically receive payments that are reported using specific forms designed for non-employee compensation. The primary forms used for this purpose are the 1099-MISC and the 1099-NEC.

The 1099-NEC is specifically used to report non-employee compensation, which is the form that many companies issue to freelancers when they pay them $600 or more in a year. This form provides essential information about the amount earned, which freelancers must include on their tax returns. The 1099-MISC is used for other types of income that do not fit the criteria for employment income but is not the primary form for reporting freelance earnings anymore, as the 1099-NEC has become the standard for reporting non-employee compensation.

In contrast, Form 1040 is the individual income tax return where all income types (including freelance earnings) are ultimately reported, but it does not specifically pertain to how freelancers report their income. Form W-2 is used by employers to report wages and tips paid to employees, which does not apply to freelancers, while Form 4562 is used to report depreciation and amortization for business assets, not income reporting. Hence, the correct forms for freelancers or