Which form should be used by non-employees to report other types of income, including "Golden parachute" payments?

The correct form for non-employees to report other types of income, such as "Golden parachute" payments, is Form 1099-MISC. This form is specifically designed for reporting various types of income that are not wage-related, including payments made to independent contractors, freelancers, and other non-employee compensation.

"Golden parachute" payments, which are severance packages provided to executives or employees in the event of a merger or acquisition, fall under the category of miscellaneous incomes that need to be reported. The IRS mandates the use of Form 1099-MISC to ensure that both the payer and the recipient document and report these payments correctly for tax purposes.

Forms like W-2, 940, and 1098 are not applicable in this context. A W-2 is used for reporting wages for employees, while Form 940 is specifically for annual unemployment taxes, and Form 1098 is used for reporting mortgage interest. Therefore, non-employees reporting incomes such as "Golden parachute" payments should use Form 1099-MISC to accurately reflect their earnings.