Which form is specifically used by independent contractors to report their income?

Independent contractors use the 1099 form to report their income. This form is specifically designated for non-employment income, which includes payments made to independent contractors for services rendered. The IRS requires businesses to issue a 1099 to any contractor they have paid $600 or more during the tax year. This allows the contractor to accurately report their income on their tax returns.

In contrast, the W-2 form is utilized by employers to report wages and earnings for their employees, including withholdings for taxes, Social Security, and other deductions. The W-4 form is a document filled out by employees to indicate their tax withholding preferences to their employer, and it is not relevant for independent contractors. The DE-6 form pertains to California's Employment Development Department and is used for reporting wages and withholdings for employees, further emphasizing that independent contractors do not use this form for income reporting.

Understanding the purpose of each of these forms helps clarify why the 1099 is specifically relevant to independent contractors, as it reflects their unique position in the workforce as self-employed individuals rather than traditional employees.