09/04/2026
W-2 or 1099? Your tax situation can look very different.
**W-2 Employee:**
✅ Taxes are generally withheld from your paycheck
✅ Employer generally pays its share of Social Security & Medicare taxes
✅ Fewer opportunities to deduct unreimbursed work expenses
**1099 Contractor:**
⚠️ Usually no tax withholding
⚠️ Generally responsible for both portions of Social Security & Medicare taxes
✅ May deduct eligible business expenses
✅ May need to make estimated tax payments
💡 **The biggest mistake? Treating 1099 income like a regular paycheck.**
If you’re starting a side gig, freelancing, or moving from W-2 to 1099 work, plan for the tax difference **before tax season.**