Oregon Written Tattoo Practice Test

What tax form should tattoo artists use for reporting income?

1. W-2 form

2. 10-99 form

3. 1099-MISC form

4. Schedule C form

The correct answer is: 10-99 form

Tattoo artists who are self-employed typically operate as independent contractors rather than traditional employees, which affects how they report their income for tax purposes. The 1099-MISC form is specifically designed for reporting payments made to independent contractors when those payments total $600 or more in a year. Since tattoo artists often receive compensation directly from clients or through studios without having payroll taxes withheld, receiving a 1099-MISC from clients or studios is common. This form allows tattoo artists to report the income they receive as non-employee compensation. It's important for artists to keep accurate records of their earnings and expenses throughout the year so they can report them correctly when filing taxes. Therefore, the use of the 1099-MISC form is appropriate for tattoo artists, aligning with how self-employed individuals report their taxable income.