Tax Basics & Filing Requirements

W-2, W-2G, and 1099: Understanding Your Income Forms

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Written byLipai WangFounder · IRS-registered tax professional

Key Takeaways

W-2: reports employee wages and tax withholding
1099-NEC: for calendar-year 2026 payments, generally reports covered freelance/contract payments of $2,000+
1099-INT: reports bank interest income
1099-B: reports stock/investment transactions
W-2G: reports gambling winnings above specified thresholds

Understanding W-2 and 1099 Forms

W-2 forms are issued by employers to report wages, salary, and withholding to both the employee and the IRS. If you are an employee, your employer sends you a W-2 by January 31 showing your total compensation and taxes withheld for the year.

1099 forms come in many varieties and are issued by entities that paid you non-wage income. Common types include 1099-NEC (non-employee compensation from freelance or contract work), 1099-INT (interest income from banks), 1099-DIV (dividend income), and 1099-B (brokerage transactions).

W-2G: Gambling Winnings

The W-2G reports gambling winnings above certain thresholds. Casinos, racetracks, and lottery organizations issue W-2Gs for significant winnings. The thresholds vary by type of gambling — $1,200 for slot machines, $1,500 for keno, $5,000 for poker tournaments, and $600 for other gambling if the payout is at least 300 times the wager.

All gambling winnings are taxable regardless of whether you receive a W-2G. You can deduct gambling losses up to the amount of your winnings, but only if you itemize deductions.

Frequently Asked Questions

What if I don't receive a 1099 for income I earned?

You must report all income regardless of whether you receive a 1099. The payer is only required to issue a 1099 for payments of $600 or more (for NEC), but income below that threshold is still taxable.

Can I deduct gambling losses?

Yes, but only up to the amount of your gambling winnings, and only if you itemize deductions. You cannot deduct more in losses than you report in winnings.

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