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
How long penalty abatement takes depends on the type of penalty relief you’re requesting. Learn more from the tax experts at H&R Block.
The IRS made a change to the Making Work Pay and/or Government Retiree Credit on your tax return. Learn more about IRS notice CP12M from H&R Block.
Do you need more time to file taxes? Review these time-sensitive tax pro tips to prepare for the tax filing extension deadline. Read more from our pros on the H&R Block blog.
Donating a qualified vehicle to a charity? Learn how Form 1098-C is used to report the details of your donation and how it affects your deduction.