Can I File My W2 and 1099 Separately?

If you received both a Form W-2 from an employer and a Form 1099 from freelance work, you cannot file them separately. United States tax law requires you to report all income from a given tax year on a single, consolidated tax return using Form 1040. Filing two returns results in an inaccurate calculation of your tax liability, as tax brackets are progressive and depend on your total income. The IRS matches income documents like W-2s and 1099s to your Form 1040, and a failure to report all income on one return can trigger an IRS notice and potential penalties.

Understanding Your W-2 and 1099 Forms

Form W-2 and Form 1099-NEC represent two distinct types of compensation. A Form W-2, “Wage and Tax Statement,” is issued by an employer to an employee. It details your annual wages in Box 1 and shows federal, state, and other taxes that have already been withheld from your paychecks.

A Form 1099-NEC, “Nonemployee Compensation,” is provided to an independent contractor or freelancer who was paid $600 or more during the year. This form reports the total amount paid to you but shows no tax withholdings. As a contractor, you are responsible for paying your own income tax and self-employment tax, which covers both the employee and employer portions of Social Security and Medicare taxes.

Reporting W-2 Employee Income

Reporting your employee income is direct. You will transfer the figures from your Form W-2 to your Form 1040. The income from Box 1 of your W-2 is entered on line 1a of Form 1040.

The federal income tax withheld, found in Box 2, is reported on line 25a. This withholding is a payment toward your total tax liability for the year. If you have multiple W-2s, add the amounts from Box 1 of all forms and enter the total on line 1a. Do the same for the amounts in Box 2, entering the total on line 25a.

Reporting 1099 Self-Employment Income

Income from a Form 1099-NEC is treated as business income and reported on Schedule C, “Profit or Loss from Business.” You must report the total gross income from all 1099-NEC forms, as well as any other self-employment income for which you did not receive a form.

On Schedule C, you can deduct ordinary and necessary business expenses to lower your taxable profit. Common deductions include:

• Office supplies
• Business-related software subscriptions
• Advertising costs
• Business use of your car, which can be calculated using a standard mileage rate (70 cents per mile for 2025) or your actual vehicle expenses
• The home office deduction, if you have a dedicated and exclusive space in your home for your business

After subtracting expenses on Schedule C, the resulting net profit is used to calculate your self-employment tax on Schedule SE. This tax covers your Social Security and Medicare obligations and is calculated by multiplying your net earnings by 92.35% and then applying the 15.3% tax rate. This net profit is then carried over to Schedule 1 of Form 1040.

Combining All Income on a Single Tax Return

Your Form 1040 consolidates all your income to determine your overall tax liability. Your W-2 wages and the net profit from your self-employment work (from Schedule 1) are added together to calculate your total income. This figure is used to determine your Adjusted Gross Income (AGI).

Your AGI is used to determine your eligibility for certain tax deductions and credits. After subtracting either the standard deduction or your itemized deductions from your AGI, you arrive at your taxable income. Your total tax is then calculated based on this final amount.

Finally, the payments you have already made are applied against your total tax. These payments include the federal income tax withheld from your W-2 and any estimated tax payments you made for your 1099 income. Subtracting these payments will show whether you owe additional tax or are due a refund.