Get Answers

Return to income

What's the difference between a 1099 and W-2?

Regarding the difference between a 1099 and W-2, if you received a W-2, you’re considered an employee. A W-2 reports these:

  • Wages, tips, and other compensation paid to an employee
  • The employee's income and Social Security taxes withheld and other information
  • Wage information to the employee and the Social Security Administration

You should report the information on the W-2 under wages.

If you received a Form 1099-MISC, you’re considered an independent contractor.

Form 1099 reports payments made in a trade or business to either of these:

  • A person who isn’t an employee
  • An unincorporated business

This form is required when payments of either of these are made:

  • $10 or more in gross royalties
  • $600 or more in rents or compensation

Ready to file?

You've got your forms. And we've got your back. There's only one thing left to do. Let's do this.

Calculators

So how much will you get (or owe) this year? That’s the million-dollar question. We happen to have three very useful calculators to help you estimate your refund or balance due.

Need Live Support? 1-800-HRBLOCK (1-800-472-5625) or Find An Office