Description of the W2 and 1099 forms

The W-2 is the document an employer sends to each employee and the Internal Revenue Service (IRS) at the end of the calendar year. A 
W-2 reports an employee’s annual wages and the amount of taxes withheld from their paychecks. A 1099 form is used to report non-employment income, including dividends paid from owning a stock or income earned as an independent contractor.