Do You Get a W-2 or 1099 for an Internship?

Internships offer valuable experience, but understanding the tax forms associated with your compensation can be confusing. The specific tax document an intern receives, whether a W-2 or a 1099, directly depends on how the company classifies the employment relationship. This classification determines how earnings are reported to the Internal Revenue Service (IRS) and impacts your tax obligations.

Understanding Your Employment Classification

The IRS distinguishes between an “employee” and an “independent contractor” based on specific criteria, which dictates how income is taxed. The determination rests on the degree of control an employer has over the worker. This control is evaluated across three primary categories: behavioral control, financial control, and the type of relationship between the parties. It is important to note that the business, not the intern, is responsible for making this classification.

Behavioral control assesses whether the company has the right to direct or control what work is accomplished and how it is done, including instructions or training. Financial control examines whether the business controls the financial aspects of the worker’s job, such as how the worker is paid, whether expenses are reimbursed, and who provides tools or supplies. The type of relationship considers factors like written contracts, employee benefits (e.g., insurance, pension plans, vacation pay), and the permanency of the relationship. Businesses must weigh all these factors, as no single factor definitively determines the classification.

When Interns Receive a W-2

An intern receives a Form W-2, Wage and Tax Statement, when they are classified as an employee. This form reports the wages, tips, and other compensation paid to the employee during the year. It also details the federal, state, and local taxes that were withheld from their paychecks.

Employers are responsible for withholding income tax, Social Security tax, and Medicare tax from an employee’s gross wages. The W-2 form provides a summary of these amounts, which is essential for the employee when filing their annual income tax return. Employers generally must furnish W-2 forms to employees by January 31 of the year following the calendar year in which the wages were paid.

When Interns Receive a Form 1099

Interns classified as independent contractors typically receive a Form 1099, most commonly Form 1099-NEC, Nonemployee Compensation. This form reports payments of $600 or more for services performed by someone not considered an employee. It includes the payer’s and recipient’s details, and the total nonemployee compensation paid.

Unlike with a W-2, the payer does not withhold taxes from an independent contractor’s compensation. This means the intern is responsible for their own tax obligations related to these earnings. Businesses are generally required to issue Form 1099-NEC to independent contractors by January 31 of the year following payment.

Tax Implications of Your Tax Form

The type of tax form you receive as an intern has significant implications for your tax responsibilities. If you receive a W-2, taxes such as federal income tax, Social Security, and Medicare have already been withheld from your pay by the employer. This simplifies the tax filing process, as you will report your income and the taxes already paid on your individual income tax return, Form 1040. The withheld amounts are credited against your total tax liability for the year.

If you receive a Form 1099-NEC as an independent contractor, you are considered self-employed for tax purposes. This means you are responsible for paying self-employment taxes, which cover Social Security and Medicare contributions at a combined rate of 15.3% on your net earnings. For 2025, the Social Security portion (12.4%) applies to earnings up to $176,100, while the Medicare portion (2.9%) applies to all net earnings. You can deduct the employer-equivalent portion of your self-employment tax when calculating your adjusted gross income.

You may also need to make estimated tax payments throughout the year, typically on a quarterly basis, if you expect to owe at least $1,000 in federal tax for the year. These payments help ensure you meet your tax obligations as income is earned, preventing potential penalties for underpayment. Independent contractors can generally deduct ordinary and necessary business expenses related to their internship income, such as certain supplies or work-related travel. These deductions and your net income are reported on Schedule C (Form 1040).

Navigating Common Scenarios

Understanding your worker classification is important for tax purposes, and if you believe you have been misclassified, you should discuss this with the employer to seek clarification. If a resolution is not reached, you may consider seeking advice from a tax professional or contacting the IRS for further guidance. The IRS offers a formal process for determining worker status by filing Form SS-8.

If you do not receive a W-2 or 1099-NEC form by the general due date of January 31, you should first contact the employer to request it. If the form is still not provided or is incorrect, you can contact the IRS for assistance. Regardless of your classification, maintaining thorough records of all income and expenses is advisable, especially for independent contractors who track their own deductible business costs.