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
Related Resources
Learn more about IRS Letter 3666C, why you received the letter, and what it means for you with help from the tax experts at H&R Block.
IRS Form 433-A, Collection Information Statement, is used to determine taxpayer's ability to pay the IRS. Learn more from the tax experts at H&R Block.
If you’ve received unemployment compensation or a state tax refund, you’ll receive Form 1099-G. Learn more about Form 1099-G and how it affects your taxes.
Need help deciding if you need to file an amended return (IRS Form 1040X)? Get the facts from the tax experts at H&R Block.
