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

IRS Transcript

Learn about the types of IRS transcripts and how you can use them to view information about your IRS account, income sources, and tax return history.

Can I Claim a Prepaid Property Taxes Deduction?

Wondering if you can claim a deduction for prepaid property taxes? Read on to review IRS rules for this situation and why tax reform brought this topic to light.

How to Fill Out A W-4 Form | H&R Block

Are you new to the workforce or changing jobs? Brush up on filling out a W-4 form with this helpful guide from H&R Block.

Form 433-F

IRS Form 433-F, Collection Information Statement, is used to determine taxpayer's ability to pay the IRS. Learn more from the tax experts at H&R Block.