You are not alone if you find yourself asking, “Can I file W2 and 1099 separately?” In short: No. Many employees on a company payroll end up accumulating multiple income sources. A “side hustle,” as part of the larger gig economy, is one or more part-time jobs that adds to a person’s overall income.
Employers issue W-2 forms to employees on a company’s payroll. By contrast, employers issue 1099 forms to independent contractors, freelancers, or self-employed individuals who perform a service for a company.
An individual can receive and file both W-2 and 1099 forms in a tax year.
While employers do not need to worry about filing W2 and 1099 forms separately, accountants need to understand the process and how their tax filing software can help them. This guide is designed for the accountants who have clients with multiple income streams and anticipate receiving both W2 and 1099 forms come tax season.
Filing W-2 and 1099 Forms
So … Can I file W2 and 1099 separately? Ultimately, no. accountants should file these forms together for their clients and doing so may require using Form 1040. That form should not be confused with Form 1040A or 1040EZ. Income and withholding determine refunds. Therefore, the IRS needs the combined information from any W2 and 1099 forms.
The combined information reported on a W2 and 1099 can be used to fill out Form 1040. The first page of Form 1040 will ask for your total employee taxable compensation from the W-2. That information should be added to any other taxable income for the year. The 1099 reflects the income derived from independent contracting.
On that same first page of Form 1040, report:
- The profit earned
- Any losses incurred
The Benefits of E-Filing
Electronic filing is a preferred tax filing method. Whether you are asking yourself, “Can I file W2 and 1099 separately?” filling out a W2 and 1099 manually increases the likelihood of mistakes.
Choosing to e-file:
- Helps reduce or eliminate personal errors made by filers
- Helps the IRS reduce the risk of making its own errors
- Streamlines the IRS’ duties by not requiring it to re-enter tax data into its system
- Provides filers with an immediate notification that the IRS received a return
- Allows accountants to receive client returns much faster than manual filers
Cutting out mailing time can expedite the return process. The decision to e-file also provides you with the option to have the IRS electronically withdraw money from your bank account. Accountants and clients can make these decisions on their own time, but it’s important to be wary of any tax deadlines so your clients can avoid penalties.
There is a less than 1% error rate for e-filed returns compared to 21% for paper returns.
E-filing saves time and effort for both the filer and the IRS. Managing multiple sources of income can be difficult enough. Make tax season more efficient by using online tax software to e-file for your clients instead of manually filing a W2 and 1099.
Frequently Asked Questions
- What should I look for in the best tax filing programs? – Getting software that prioritizes accuracy, affordability, automation, and accessibility will help you feel less overwhelmed by the tax filing process, whether you are filing as an individual or as a business.
- Is in-house IRS tax filing software worth it? – Yes, but the timing is different for everyone on whether or not they are ready to commit to in-house filing. Make sure that the system that you use is menu-driven and provides its users with intuitive guidance and thorough accuracy checks.
AMS W2/1099 Forms Filer Can Help
Filers who are accounting for more than one type of taxed income often wonder, “Can I file W2 and 1099 separately?” To avoid confusion, make sure to e-file. Using software can take away the stress of multiple filings. AMS’ W2/1099 Forms Filer accommodates the complications of modern income sources, providing filers with a sense of relief. Download our free 1099-etc Demo software to get started.
This article was updated on Dec. 12, 2025 to keep its information as fresh as possible. We update this article every six months, before and after tax season, to keep current with any changes.