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1099 vs W-2 — what those numbers actually mean If you’ve never heard these terms before, here’s where to start. 1099 and W-2 are not job titles. They’re tax forms. Those numbers refer to the paperwork the IRS uses to track how you’re paid. W-2 means you’re paid as an employee. Your employer reports your income to the IRS using a W-2 form. Taxes are usually withheld automatically from each paycheck. 1099 means you’re paid as an independent contractor. The company reports what they paid you using
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