Asked by Allen Hudson on Jun 21, 2024
Verified
Which statement is NOT true about the differences between the income on a W-2 and that on a 1099 form?
A) 1099 income is untaxed where the income on a W-2 is already taxed.
B) A 1099 form is for income other than wages.
C) The income on a 1099 is money from interest,royalties,rents,and more.
D) The 1099 income is not reported to the IRS while the W-2 income is reported.
W-2
A form used in the United States to report wages paid to employees and the taxes withheld from them to the Internal Revenue Service (IRS).
1099 Form
An IRS tax form used to report various types of income other than wages, salaries, and tips.
Untaxed Income
Income that is not subject to taxation by the authorities.
- Identify the differences between income that incurs tax liabilities and income that does not.
- Ascertain the responsibilities and components of important tax documents like W-2, 1040, and 1099 forms.
Verified Answer
BK
Bobby KohlsJun 22, 2024
Final Answer :
D
Explanation :
The statement "The 1099 income is not reported to the IRS while the W-2 income is reported" is not true. Both W-2 and 1099 income is reported to the IRS, but in different ways.
Learning Objectives
- Identify the differences between income that incurs tax liabilities and income that does not.
- Ascertain the responsibilities and components of important tax documents like W-2, 1040, and 1099 forms.