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
Here's a list of tax documents you'll need to file this year's return. Get ready to file your taxes with H&R Block.
Discover how to report a Form 1099-MISC with an amount in Box 3 with help from the tax experts at H&R Block.
If you bought a vehicle last year and forgot to claim the sales tax on your return, can you claim the tax this year? Learn more from the experts at H&R Block.
For a limited time, qualifying taxpayers can pay nothing to file a 1040ez with a tax pro at H&R Block. Find out if you qualify and how you can pay nothing!