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

A 1099 and a W-2 are both forms used for tax filing in the state of Virginia. The main difference between the two is that the 1099 is used for self-employed individuals, while the W-2 is used for employees. The 1099 form is issued by individuals, businesses, or government entities to any contractor or freelancer who earned any income during the tax year. This form is used to report the total amount of wages, salaries, commissions, and other compensation that has been earned. The 1099 is also used to report any income from rent, royalties, and other payments made to the contractor or freelancer. The W-2 form is the form used by employers to report the total amount of wages and other compensation paid to their employees during the year. This form is also used to report state and federal taxes which were withheld from the employee’s paychecks, as well as Social Security and Medicare taxes which were paid by the employer. On the W-2 form, the employer also provides the employee’s address and Social Security number. Even though both forms are used for tax filing in Virginia, the 1099 form is only used for self-employed individuals, while the W-2 form is used for employees.

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

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