W-2
and 1099 are two different types of income reporting forms with distinct tax treatments, applicable to different categories of taxpayers.

What is a W-2 Form?

The W-2 form, also known as the Wage and Tax Statement, is a tax document that employers must issue to each employee and the Internal Revenue Service (IRS) after the end of each tax year. The W-2 reports an employee’s annual wages and the taxes withheld (federal, state, local, etc.). It is a critical document for tax filing.

The W-2 is an annual wage summary provided by employers to employees. Whether you are a part-time or full-time employee, as long as you have an employer-employee relationship, your wage income will be reported on a W-2. Independent contractors (self-employed individuals) do not receive a W-2; instead, their income is typically reported on Form 1099-MISC.

The IRS requires employers to issue W-2 forms for the previous tax year by January 31 of the following year. Therefore, employees generally receive their W-2s in February. If you haven’t received your W-2 by the end of February, you should contact your company’s HR department immediately, as the annual individual tax filing deadline is April 15 (or the next business day if it falls on a weekend).

What is a 1099 Form?

A 1099 form is an information return that any individual or entity (payer) must file with the IRS to report payments made to a taxpayer (payee).

Unlike the Tax Return (Form 1040) submitted to the IRS during tax season, the IRS refers to 1099 forms as “Information Returns.” These forms serve as supporting documents for completing your Tax Return. To avoid confusion, it’s helpful to refer to these Information Returns as “tax reporting statements.”

The 1099 is not a single form but a series of documents the IRS classifies as Information Returns. It is a family of forms, each designated by “Form 1099” followed by a suffix indicating the type of income (e.g., Form 1099-MISC, Form 1099-INT). The most commonly referenced 1099 form is the Form 1099-MISC.

Common 1099 Forms

Common 1099 Form Codes	Purpose	Issued By
1099-MISC 1099-NEC	Annual summary of miscellaneous income Annual summary of non-employee compensation (treated as self-employment income)	Companies, hiring entities
1099-INV 1099-DIV	Annual summary of investment income or dividends	Stockbrokers/brokerage firms/banks handling investments
1099-INT	Annual summary of interest income	Your bank (where deposits are held)
1099-B	Annual summary of transactions (stocks, options, commodities, etc.)	Stockbrokers/brokerage firms
1099-K	Annual summary of payment card & third-party network transactions	Third-party processors (e.g., Amazon, PayPal, Uber)