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Several tax returns are filed each year that include both W-2 and 1099. Both these incomes can be generated from a “day job” and a “side gig.” W-2 is received from a day job which is probably a more regular, standard job, while 1099 income is often generated from side gigs. But the main problem lies with filing taxes with W-2 and 1099 income.
What is W-2 and how to file taxes for it?
- Working as an employee in any organization at a salaried or hourly job and as a regular employee, one receives the w-2 income. The employer of the organization provides a W-2 form, Wage, and Tax Statement. Your employer will send a copy to you and one to the IRS to report your wages and the total tax withheld from those wages.
- The employer must send you the W-2 form for tax filing by 31st January of the year.
- When filing returns for W-2 income, make sure to check your withholdings (Form W-4) to verify that you are receiving the correct amount of income each month. You can even withhold additional income at your W-2 job to cover your self-employed tax liability.
- You can file your return by filling out the form on the IRS website with all the necessary information.
- Once the verification is done, your return process starts.
What is 1099 and how to file taxes for it?
- 1099- NEC is the income generated from compensation paid to non-employees by an organization. This includes contract workers (self-employed) and anyone who is paid for performing work but is not technically an employee.
- 1099- MISC is the income generated from Crop insurance proceeds, Fishing boat proceeds, Excess golden parachute payments, non-qualified deferred compensation, Gross proceeds paid to an attorney, Substitute payments in lieu of dividends or interest, and Section 409A deferrals.
- Employers must send the 1099 tax information by January 31st of the year. However, you don’t need a Form to file 1099 tax returns. The income from your contract jobs can be reported by you yourself on the IRS website. Thus it is important to keep a record of earnings and expenses. But in case you don't receive a 1099-R form you must ask your employer or payer for a 1099 form.
- You can file your return by filling out the form on the IRS website with all the necessary information.
- Once the verification is done, your return process starts.
NSKT Global is a consulting firm that helps with all kinds of consultation services. Our team of professionals helps you in filing returns for the W-2 taxes and 1099 taxes. We also guide you on saving tips for W-2 taxes and 1099 taxes. The team of consultants will also guide you on filing taxes precisely to get the returns on time.
