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W2 means your employer withholds taxes for you. 1099 means you're self-employed and handle your own taxes, track expenses, and get more deduction opportunities.
W2 means your employer withholds taxes for you. 1099 means you're self-employed and handle your own taxes, track expenses, and get more deduction opportunities.
What is the difference between a 1099 and a W2? Well, that's a great question. A 1099 and a W2, if you didn't know this already, are tax forms that define an income or relationship someone has with a business. So if you're a W2, think of it as a regular 9 to 5 where the employer automatically withdraws taxes from the employee's paycheck. Very low involvement. A 1099. On the other hand, they're considered self employed and they're responsible for tracking their own income and expenses only if they want to save money in taxes, which, I mean, who doesn't? Am I right? 1099s generally have more tax benefits when it comes to deductions, but it ultimately depends on your situation. Follow us for more tax tips like this so you can stay up to date on how you can save more money in taxes.
