W4

1099, W2, W4, W9 – what’s the difference?

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Fill out this 1099 form. Did you get your W2 from your employer? Fill out this W4 form.

Keeping all the tax forms straight is a challenge. In today’s post, we go through the difference between the most commonly filled out tax forms. That way, you know what you’re signing and why.

Form W4

This is the form that you fill out at the beginning of most conventional employment. The purpose of this paper is to let your employer know how much tax money they should withhold from your paycheck. You can also use this form to adjust your withholdings throughout the year.

Form W2

This is the magical form most of us are waiting on to get started with our taxes. It shows your yearly income and how much was withheld – critical information for both you and your accountant.

Form 1099  

This is a form you receive in any non-conventional payment situation. Basically, if you make money as an independent contractor or self-employed taxpayer, you will receive a version of this form.

If you are working as a contractor, business, or have received money from the government, bank, etc, you will likely get one of these. There are a lot of versions of this form, including:

  • MISC, Miscellaneous Income

  • G, Certain Government Payments

  • K, Payment Card and Third Party Network Transactions

  • R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

  • DIV, Dividends and Distributions

  • INT, Interest Income

Form 1098

There are a few versions of this form from income or payments to institutions like universities and banks. The most common forms of these are:

  • 1098-E, Student Loan Interest Statement

  • 1098-T,  Tuition Statement

  • Mortgage Interest Statement

Schedule K-1

This form reports any income, deductions, or other tax items you might receive as part of a business partnership. You will usually have to wait until later in the tax season to receive this form.

Have a form that’s not covered here? Reach out to us.

Any U.S. tax advice contained in the body of this website is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.