In the United States, income generated is reported primarily in two ways: Form W-2 or Form 1099-MISC.

Depending on how you have been hired, that is, as an employee or as an independent worker, the employer has the duty to give you one of these IRS forms with w2 finder so fast, once the year ends for your tax return the following year.

Form W-2

The W-2 form is the one received by people who worked as employees, that is, those who are on the payroll of employees of a company.

The main feature of the W-2 form is that it represents withholding tax. This means that during the year the employee received his payment, income taxes, social security taxes, and/or Medicare taxes were withheld by the employer, reducing the amount of payment received. At the time of the tax return, the W-2 form shows the IRS if the employee paid more taxes or, on the contrary, must pay some difference.

Form 1099-MISC

The 1099-MISC form is the one received by people who worked as subcontractors or freelancers. These people are not on an employee payroll but are hired independently for specific projects.

The main feature of the 1099-MISC form is that it represents full income and there is no withholding tax from the employer. This means that it is the responsibility of the self-employed person to pay the corresponding taxes to the IRS. The 1099-MISC form only shows a box with the complete income received in the year and at the time of the tax return, these are calculated based on the income generated.

It is important to bear in mind that these two forms are not the only ones that you can receive when you generate some type of income, since for example there is income from investments, pensions, etc. and each entry can generate a different form.

At filemytaxesonline, we are prepared to help and advise you so that your tax return is well done and your record with the IRS forms is impeccable. Visit us and bring us all your questions and concerns.

You can get your w-2-form faster online via w2 finder online.