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

A 1099 form and a W-2 form are both documents related to income tax in the state of Washington. The main difference between the two forms is the type of income they report. The 1099 form is used to report income from certain types of freelancer work and non-employee compensation. Freelancer work and non-employee compensation includes any money earned from self-employment, contract labor, rent payments, prizes, awards, and other miscellaneous income. A W-2 form is used to report income from employment. This includes wages, salaries, tips, and other compensation that employees receive for their work. The employer must provide the W-2 form to each employee every year that they are employed. The information reported on both forms is then used to determine the individual’s tax liability. The 1099 form will report how much total income was earned, while the W-2 form will report the amount of income taxes that have been withheld from the employee’s paycheck. The taxes withheld from the W-2 form will then be applied to the amount of taxes owed for the year. It is important to note that both the 1099 and W-2 form must be filed with the Internal Revenue Service in order to pay taxes in the state of Washington.

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

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