A tax form reporting income paid to a non-employee — freelancers, contractors, and gig workers.
No taxes are withheld from 1099 income, and the recipient owes both halves of FICA via self-employment tax. This is why 1099 workers must budget for taxes themselves, often via quarterly payments.
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FAQ
What is 1099 in simple terms?
No taxes are withheld from 1099 income, and the recipient owes both halves of FICA via self-employment tax. This is why 1099 workers must budget for taxes themselves, often via quarterly payments.