What is the difference between a 1099 and W-2 form?

A 1099 form and a W-2 form are two types of tax forms used to report income. In California, as with other states, the responsibility to report income on taxes falls on both the taxpayer and the employer. The 1099 form is used to report income from non-employee work, such as self-employment, rental income, or income from investments. The W-2 form is used to report income from an employer. This includes wages, salary, and tips, as well as other forms of income and deductions that have been withheld for taxes. The most significant difference between a 1099 and W-2 form is that taxes are not automatically withheld from income reported on a 1099 form. This means that the taxpayer is responsible for calculating and paying all applicable taxes. On the other hand, a W-2 form has taxes automatically withheld by the employer. The employer is also responsible for calculating and paying all applicable taxes. In addition, a 1099 form is issued to independent contractors, while a W-2 form is issued to employees. This is important because it determines who can report income on their taxes and how it is reported. Finally, the 1099 form may include other forms in addition to income and deductions, such as a 1099-MISC form (used to report miscellaneous income) or a 1099-R form (used to report income from retirement plans). The W-2 form only reports income and deductions related to employment.

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What is the difference between a 1099 and W-2 form?

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