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Tax season hits differently when there is no HR department to sort things out. For freelancers and independent contractors, the paperwork falls squarely on one person’s shoulders, and getting it wrong can mean penalties, delays, or a letter from the IRS. Tax paperwork for the self-employed is not a one-size-fits-all situation, and the forms that matter depend entirely on how work gets structured and paid. Here is a breakdown of the documents that come up most often and what each one actually requires.
The Form That Starts Every Client Relationship
Before any work begins, most clients will ask for one specific document. To receive payments from any U.S.-based clients, freelancers must provide their business name, address, and tax identification number on a W-9. The easiest way to handle this is with a fillable W-9 form, which allows for accurate digital completion before the document reaches the client.
Who Needs to Fill One Out
Any freelancer or contractor paid $600 or more by a single client in a calendar year will need a W-9 on record. That threshold is low enough to apply to most professional engagements.
Self-employed individuals: Sole proprietors, consultants, and gig workers all fall under this category.
Single-member LLCs: These are still treated as disregarded entities for federal tax purposes unless an election has been filed.
Partnerships: They submit a W-9 under the partnership’s EIN rather than a personal Social Security number.
Keeping a completed, accurate W-9 on hand and ready to send cuts down on delays at the start of new contracts.
Forms That Come Back at Year-End
Once a tax year wraps up, a different set of documents starts arriving, and freelancers need to know what to do with each one.
The 1099-NEC
This is the … Read More
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