# Form 1099

*Taxes — Finicade finance glossary*

A 1099 reports income paid to someone who isn't an employee — contract work, interest, dividends, brokerage proceeds. The defining feature is that nothing is withheld, so the tax is entirely your problem and usually due quarterly. Being 'a 1099' rather than 'a W-2' also means paying both halves of payroll tax, which is why an equivalent contract rate must be meaningfully higher than a salary to break even.

**Also known as:** 1099, 1099-NEC, 1099-MISC, 1099 contractor

**Related terms:** [Form W-2](https://finicade.com/glossary/form-w-2), [Self-Employment Tax](https://finicade.com/glossary/self-employment-tax), [Gig Economy](https://finicade.com/glossary/gig-economy), [Estimated Tax Payments](https://finicade.com/glossary/estimated-tax-payments), [Pass-Through Entity](https://finicade.com/glossary/pass-through-entity)

Source: https://finicade.com/glossary/form-1099