Question

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

Answer

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

Related Topics

Related Resources

FAFSA Tax Return Requirements | H&R Block

Do you receive financial aid? Learn how the FAFSA uses your tax return with this checklist of commonly asked questions from the experts at H&R Block.

Distributions from IRAs and Pensions Form 1099-R

Learn more about the payments from IRAs and Pensions and how to file them on form 1099-R from the experts at H&R Block.

Form 4684 – Theft and Casualty Losses

Learn more about IRS form 4684 and get tax answers at H&R Block.

I have a question about changing tax filing status. If my W-4 states I’m married, can I file taxes as single?

Can you file taxes as single when your status is married on your W-4 form? Learn more from the tax experts at H&R Block.