Student Tax Education Program - Income Tax

W-2's and 1099 Explained

Do you have a 1099?

  • If you are issued a 1099 as your income statement from your employer, this is because you are considered self-employed and performed a job for the company issuing the 1099. This means you are responsible for making estimated payments for your taxes IT-1040ES instead of the employer withholding from your pay and remitting on your behalf.
  • You will note that there may be a place for state taxes paid on this form, but in most cases this will be empty.
  • Other reasons someone would be issued a 1099 could be having received unemployment income, lottery winnings, retirement income, interest earnings on a savings account or dividends paid from investments.