Do You Want A 1099 Or A W-2? If you’re an employee, taxes have to be taken out. That means you’ll receive an IRS Form W-2 in January. In contrast, if you’re an independent contractor, you’ll get full pay with no deductions. Of course, you are liable for your own taxes. Come January, assuming your total pay was $600 or more, you’ll receive an IRS Form 1099. in Public bookmarkswith 1099businesscontractorindependentreturntaxw-2