Independent Contractor (1099) Invoice Template

Independent Contractor (1099) Invoice Templates

Here is everything you need to know about Independent Contractor (1099) invoice templates. Who they are for, how they work, what to put in them, and most importantly, how to create an independent contractor (1099) invoice template.

Who is an independent contractor (1099) invoice template for?

An independent contractor invoice template is for self-employed professionals who provide services to clients without being treated as employees. They can be consultants, designers, writers, developers, photographers, marketers, construction contractors, and other freelancers or service providers.

Independent contractors usually invoice clients for their work instead of receiving wages through payroll. However, sending an invoice or calling someone a contractor does not by itself determine whether the worker is legally classified as an independent contractor.

Independent contractors who need additional billing formats can also explore our self-employed invoice templates.

How does an independent contractor (1099) invoice template work?

An independent contractor invoice records the services provided and tells the client how much to pay and when payment is due. The contractor enters their business information, the client’s details, service dates, descriptions, rates, approved expenses, applicable taxes, and payment terms.

The client can use the invoice together with its payment records to track how much it paid the contractor during the calendar year. If the payments meet the applicable reporting requirements, the client may use this information, along with the contractor’s Form W-9, to prepare Form 1099-NEC.

The invoice does not replace Form W-9 or Form 1099-NEC.

How to track invoice totals against the 1099-NEC reporting threshold

Independent contractors should track the total amount invoiced and the total payments received from each client during the calendar year. Invoice totals help contractors manage outstanding balances, while payment totals help determine how much a client may need to report on Form 1099-NEC.

For each client, track:

• Invoice number
• Invoice date
• Amount invoiced
• Payment date
• Amount received
• Running calendar-year payment total

For qualifying payments made through December 31, 2025, the general Form 1099-NEC reporting threshold was $600. For payments made in 2026, the threshold is $2,000. For payments made after 2026, the threshold will be adjusted for inflation.

The threshold applies to cumulative qualifying payments made during the calendar year, not to each individual invoice.

Reaching or exceeding the reporting threshold may require the client to file Form 1099-NEC, but it doesn’t determine whether the contractor must report the income. Contractors should keep records of all business income, including amounts below the reporting threshold.

How to create an independent contractor (1099) invoice template?

You can create a independent contractor (1099) invoice template in three ways: From scratch (Hard), Using a template (Easier), and using an invoice generator (Easiest).

From scratch (The hard way)

The most complicated way to create a independent contractor (1099) invoice template is to create one from scratch using word processing or spreadsheet programs, like Microsoft Word or Google Sheets. You can even make one using a simple text editor or send an email or text message. But, that way doesn't look very good and may give a less than professional impression to your client so we will avoid it altogether.

What to include in your independent contractor (1099) invoice template

Include the following sections and information in your independent contractor (1099) invoice template:

1. Sender's information: your name or company name, address, and phone number.
2. Client information: your client's name or company name, address, and phone number.
3. Invoice number: An invoice number so you can easily refer to the invoice.
4. Date sent: the date you sent the invoice.
5. Due date: a due date to let the client know when they need to pay the invoice.
6. Reference number: a reference number if applicable.
7. Item name: the name of the services provided
8. Item description: a description of the services provided.
9. Item cost: the cost and quantities of the service provided.
10. Quantity: the number of each item.
11. Line total: the item cost multiplied by the quantity.
12. Subtotal: the total amount of all items
13. Tax: any taxes (if applicable).
14. Discounts: Any discounts (if applicable).
15. Total: the subtotal, minus discounts, plus taxes.
16. Deposits: any deposits (if applicable).
17. Payments: any payments (if applicable).
18. Amount due: Total, minus deposits, minus payments.
19. Terms: for official language like how to pay, how late payments are handled, and anything else of an official nature.
20. Notes. You can say things like, "Thanks for your business."

What should a 1099 contractor include that an employee doesn’t?

Unlike employees, independent contractors generally bill clients directly rather than receiving wages through payroll. A contractor invoice should include the legal or business name used for the work, along with contact information, services provided, rates, payment terms, and the total amount due.

Not sure what rate to charge? Use our free hourly rate calculator to estimate a sustainable rate based on your income goals, expenses, taxes, profit margin, and billable hours.

The legal or business name on the invoice should be consistent with the information provided to the client on Form W-9. Clients use Form W-9 to collect the contractor’s taxpayer identification number, which may be a Social Security number (SSN) or Employer Identification Number (EIN), depending on the contractor’s entity type and applicable IRS reporting requirements.

An SSN or EIN should normally be provided separately through Form W-9 rather than displayed on the invoice. As a privacy and security precaution, contractors should avoid including a full SSN because invoices may be emailed, downloaded, printed, or shared.

A contractor may also include this optional note:

“Independent contractor services. No payroll taxes are withheld from payments under this invoice. The contractor is responsible for applicable taxes unless withholding is required by law.”

How to format and style your independent contractor (1099) invoice template

Once you have all of that information, create sections in your word processing or spreadsheet software to enter the data. Pay special attention to the layout and formatting. Do a print preview so you can see how it will look if you or your client prints the invoice. Triple check your calculations to make sure you are charging them the correct amount and have applied taxes, discounts, and deposits correctly. Style it with your choice of font, colors, and logo.

Save your independent contractor (1099) invoice template.

Once you are satisfied with your independent contractor (1099) invoice template, save it so you can use it again.

Send your independent contractor (1099) invoice template.

Now you can send it to your client by email, text message, or print and mail it. We recommend email or text since it is the fastest way to get the invoice to your client. Getting it in their hands faster means you should get paid faster.

When in doubt, you can always pick up the phone and call them to make sure they received the invoice, or, even better, use Invoicer.ai's invoice tracking, so you know if your client received and viewed your invoice.

The pros and cons of manually creating your independent contractor (1099) invoice template

Pros: you have complete control of the look and layout, and it doesn't cost you anything.

Cons: time-consuming, you need word processing or spreadsheet software, harder to stay organized, keep track of invoices, you need to perform calculations manually, you need to format an invoice manually, and it is difficult to know the invoice status.

Create an Invoice with Invoicer.ai

‍

Using a Template (Easier)

An easier way to create an independent contractor (1099) invoice is to use a premade invoice template like one of the ones at the top of this page. This way, all sections are already on it, and you need to enter your information and perform calculations.

For independent contractor (1099) invoice templates created using a spreadsheet program like Microsoft Excel or Google Sheets, the formulas should be in place, so you only need to enter the information, and the amounts are calculated for you. It is still good to double-check to make sure you are invoicing your client the correct amounts.

How to enter information into a independent contractor (1099) invoice template

Enter the following information in your independent contractor (1099) invoice template sections:

1. Your name or company name, address, and phone number.
2. Your client's name or company name, address, and phone number.
3. An invoice number so you can easily refer to the invoice.
4. The date you sent the invoice.
5. Due date to let the client know when they need to pay the invoice.
6. A reference number if applicable.
7. The name of the services provided.
8. A description of the services provided.
9. The cost and quantities of the services provided.
10. The quantity of each item.
11. The item cost multiplied by the quantity.
12. The total amount of all items
13. Any taxes (if applicable).
14. Any discounts (if applicable).
15. The subtotal, minus discounts, plus taxes.
16. Any deposits (if applicable).
17. Any payments (if applicable).
18. The amount due.
19. In terms enter how to pay, how late payments are handled, and anything else of an official nature.
20. In the notes section, you can say things like, "Thanks for your business."

Save and send it!

Once you are happy with your independent contractor (1099) invoice, save it and send it so you can get paid for your hard work.

The pros and cons of using a independent contractor (1099) invoice template

Pros: you only need to enter the information. you can style the template how you like. it is free.

Cons: still time-consuming, you need word processing or spreadsheet software, harder to stay organized and keep track of invoices, you need to perform calculations manually, and it is difficult to know the invoice status.

Using an invoice generator (Easiest)

By far the easiest way to create an independent contractor (1099) invoice is by using an invoice generator. An invoice generator guides you through the invoice creation process, performs calculations automatically, and makes it very easy to send and manage invoices. You can even receive online payments!

Create an independent contractor (1099) invoice for free using the Invoicer.ai invoice generator

How to create an independent contractor (1099) invoice using an invoice generator

To create an independent contractor (1099) invoice using Invoicer.ai, watch the video above and follow the steps below.

Note, the information you enter is automatically saved for you so you do not need to enter it again. This is useful when you create new invoices for the same client and items.

1. Go to app.invoicer.ai
2. Enter your information into the invoice editor (note, click or tap the New Invoice button if you are not on the Invoice Editor screen)
3. The invoice is called INVOICE in the top left. You can edit this to whatever you like. For example, you can call it a BILL.
4. Enter your name or company name, address, and phone number.
5. Enter your clients name, address, and phone number.
6. The date issued is automatically populated with the date you create the invoice on. You can adjust as needed.
7. The due date is automatically populated 30 days (net 30) from the issue date. You can adjust as needed.
8. The invoice number is automatically populated. You can adjust as needed. Note, you cannot use the same invoice number twice.
9. Enter a reference value if needed (optional).
10. Under Description, enter the item name and details.
11. Enter the rate (amount of the item). You will notice the Amount Due automatically updates for you.
12. A default quantity of 1 is used. Adjust as needed.
13. Add a discount if needed as a percent or dollar amount. Note, you can add as many discounts as you want here and name them whatever you like.
14. Add tax. Note, you can add multiple taxes and name them whatever you want. We recommend adding your business tax number here if you have one. For example, GST (#12345678).
15. Add a deposit if needed as a percent or dollar amount. Note, you can add as many deposits as you want here and name them whatever you like. This is handy if you have a large job and need the client to send deposits as the work progresses.
16. Add a payment if you have received any. You can add multiple payments and their dates here.
17. Add notes.
18. Add terms.

Done!

If you haven't signed up yet you will need to create a free account to download a PDF and send your invoices. Once you are signed up you can access your invoices from any device.

Once you are happy with your invoice you can click View Stub to see what the stub view looks like. The stub view is a summary of the invoice and it is what the client sees when they view the invoice from email.

You can also click the PDF button to download and view a PDF version of the invoice.

If everything looks good, click the Send button to send your invoice to your client or email or text the PDF version.

The pros and cons of using an invoice generator

Pros:

• Save time and create invoices fast.
• Keep invoices and client profiles organized.
• Send invoices from anywhere, at any time.
• Track payments and send payment reminders.
• Track invoices, estimates, and payments.
• Attach files.
• Make automatic calculations, and so much more.

Cons:

• Fewer customization options
• Cost money

The pros of using an invoice generator far outweigh the cons. The time savings alone are worth every penny with an affordable invoice generator like Invoicer.ai.

---

The bottom line

Creating an independent contractor (1099) invoice using an invoice template can actually be complicated, prone to errors, and come off as unprofessional!

It doesn't have to be. Use an invoice generator or a pre-made invoice template to save yourself time, look professional, and get paid fast.

Create an Invoice with Invoicer.ai

‍