Question

As a contracting bookkeeper, those that hired me for their services will send what every year to show what amount I was paid?

a. Invoice
b. Receipt
c. 1099
d. W-2

Answer 1

As a contracting bookkeeper, the companies that hire your services will send you a Form 1099 each year to report your payments, not a W-2, as you are considered an independent contractor.

Step-by-step explanation:

When working as a contracting bookkeeper, the companies that have hired your services will send you a Form 1099-MISC (or 1099-NEC, depending on the tax year and types of payment) every year, which shows the amount you were paid during the previous year. This form is necessary for independent contractors to report their income to the IRS. Unlike traditional employees, who receive a W-2, independent contractors receive a 1099 because they are not considered employees of the business, and therefore, no taxes are withheld from their payments.