Young Adult Tax Guide

Before Tax Filing Season

1. Create an IRS Online Account.
2. Save tax forms like your W-2 or any 1099s.
3. Make sure your employer has your correct name, Social Security number, and address.
4. Keep receipts for college tuition, student loan interest, or charitable donations.
5. Review your paycheck to ensure federal and state taxes are being withheld.
6. Decide whether to file yourself, use IRS Free File, or hire a tax professional.
7. Keep all tax documents organized in one folder until you’re ready to file.

What is W-2?

1. W-2 is a tax form that shows how much money you earned from an employer during the year.
2. It shows federal income tax withheld from your paychecks.
3. It reports your Social Security and Medicare wages and taxes withheld.
4. Your employer generally sends you a W-2 if you were their employee, rather than an independent contractor.
5. You use the information on your W-2 when preparing your federal and state income tax returns.
6. Employers generally must provide W-2s to employees by January 31 following the tax year.
7. W-2 = Employee. 1099 = Usually independent contractor/nonemployee income.

What is 1099?

1. 1099 is a tax form that reports income you earned outside a regular employee job.
2. Taxes are usually not withheld from your payments.
3. 1099-NEC is commonly used for freelancers, gig workers, and independent contractors.
4. You must report your income when filing your tax return.
5. You may owe income tax and self-employment tax.
6. You may need to make estimated tax payments during the year.
7. Remember: W-2 = Employee | 1099-NEC = Independent Contractor.