A W-2 and a 1099 are both tax forms that report income to you and to the IRS — but they describe very different working and earning situations.
Form W-2 (Wage and Tax Statement):
- Issued by an employer to an employee.
- Reports your wages for the year and the taxes already withheld from your paychecks — federal and state income tax, Social Security, and Medicare.
- Employers must provide it by January 31.
Form 1099: a family of forms that report income other than regular wages. Common ones include:
- 1099-NEC — pay for independent contractor or freelance work.
- 1099-INT — interest income, such as interest earned on a savings account.
- 1099-DIV — dividend income from investments.
- 1099-R — distributions from retirement accounts.
The key difference: a W-2 means you are an employee and taxes were withheld for you. A 1099 generally means no taxes were withheld — so if you receive 1099 income, you may owe tax on it at filing time and may need to make estimated tax payments during the year.
Keep every W-2 and 1099 you receive — you need them to file an accurate return. For help preparing your return, you can schedule a tax preparation appointment with RMO Tax Services.