What is the difference between a W-2 and a 1099, and why do I get one or the other?

A W-2 reports wages paid to an employee, along with the income, Social Security, and Medicare taxes the employer withheld during the year. A 1099 — most commonly the 1099-NEC for contractors — reports income paid to someone who is not an employee, with no tax withheld. If you were on payroll you get a W-2; if you did freelance or contract work you get a 1099-NEC from each client who paid you above the IRS reporting threshold for that year. Many people receive both: a W-2 from a day job and 1099s from side work. Your job at tax time is to gather every one of them, because each was also reported to the IRS and a missing one triggers a mismatch.

How should I organise all these PDFs so nothing gets lost?

Use one folder per tax year, and within it group by type: Income (W-2s, 1099s), Deductions (receipts, logs, 1098s), and Reference (prior return, correspondence). Name each file so it is identifiable at a glance — for example 2025_W2_AcmeCorp.pdf or 2025_1099NEC_ClientX.pdf — with the year first so files sort chronologically. As documents arrive in January and February, drop them straight into the right subfolder rather than letting them pile up in email or downloads. When everything has arrived, you assemble a single packet from the folder. This structure also makes next year trivial: copy the empty skeleton and start filling it.

Should I combine everything into one PDF for my accountant?

A single, well-ordered packet is usually what a preparer prefers over a dozen loose attachments. Merge the documents in a logical order — a cover summary or checklist first, then income forms (W-2s, then 1099s), then deduction support, then reference items — and add page numbers so anything can be referenced by page. Keep the individual originals too; the merged packet is for transmission and review, the originals are your source records. If your preparer uses a secure client portal, upload there rather than emailing; if you must email, password-protect the file because it is full of sensitive identifiers.

How do I protect Social Security numbers and other sensitive data in these PDFs?

Tax documents are dense with exactly the data identity thieves want: full name, address, Social Security or taxpayer ID number, and financial figures. Two protections matter. First, when sharing a document with anyone who does not need the full identifier — say, proving income to a landlord — redact the parts they do not need, using true redaction that removes the underlying text rather than a black box that can be peeled off. Second, when transmitting the full packet to your preparer, password-protect (encrypt) the PDF and share the password through a separate channel. Never email an unencrypted tax packet, and prefer a secure portal when one is offered.

How many years do I need to keep tax records?

The IRS frames retention around the period of limitations for the return. The general rule is to keep records for three years from the date you filed, but it is longer in specific situations: six years if you under-reported income by more than 25%, seven years if you claimed a loss from worthless securities or a bad-debt deduction, and indefinitely if you did not file or filed a fraudulent return. Records connected to property should be kept until the period of limitations expires for the year you dispose of the property. Because the right answer varies, many people keep seven years of full packets to be safe. Always check the current IRS guidance for your situation.

A form arrived as a paper document — how do I get it into my digital packet?

Scan or photograph it, ideally with a phone "scan" mode that deskews and applies contrast, then save it into the right folder with the standard naming. A scan is an image, so if you want the text to be searchable later, run an OCR pass to add a text layer — useful for finding a figure across a big packet, though not required just to include the page. Verify the scan is fully legible (every digit on the form readable) before you discard or file away the paper, since a blurry W-2 scan is worse than useless if a number cannot be read.

Is it safe to use an online PDF tool for tax documents?

Tax documents are about as sensitive as personal paperwork gets, so prefer a tool that processes files locally rather than uploading them to a server. ScoutMyTool runs its PDF operations — merging, redacting, encrypting, compressing — entirely client-side in your browser tab, so your W-2s and 1099s never leave your machine. If you use any cloud-based tool for tax PDFs, confirm it does not retain your files and ideally that it offers a clear privacy commitment, and password-protect anything before it travels.

7 min read

PDF for tax season: W-2, 1099, and supporting-docs workflow

By ScoutMyTool Editorial Team · Last updated: 2026-05-21

For years my “tax system” was an email folder, a desk drawer, and a frantic April weekend reconciling which 1099s had actually arrived. The year I finally got organised, the whole thing took an afternoon — not because I learned anything about tax law, but because I treated the paperwork as a document-management problem and solved it with a tidy folder and a few PDF steps. This guide is that workflow: gathering your W-2s, 1099s, and supporting documents, naming and merging them into one return-ready packet, protecting the sensitive data they contain, and keeping records the right number of years. It is about the documents, not the deductions — for tax advice, see a professional, but for getting your paperwork in order, read on.

The documents you are gathering

Tax season is mostly a collection exercise: a set of forms arrives from employers, clients, and institutions, plus the supporting records you compile yourself. Knowing the full set is how you notice when one is missing.

Document	What it is	Who sends it	In your packet
Form W-2	Wages and tax withheld (employees)	Your employer	One per job held in the year
Form 1099-NEC	Nonemployee / contractor compensation	Each client who paid you	One per payer above the IRS threshold
Form 1099-MISC	Rents, royalties, other income	The payer	As received
Form 1099-INT/DIV	Interest / dividend income	Banks, brokerages	One per institution
Form 1098	Mortgage interest, tuition (1098-T)	Lender / school	If claiming related deductions
Receipts & logs	Deduction support (expenses, mileage)	You compile	Summarised, with originals attached
Prior-year return	Last year’s filing for reference	You / your preparer	For carryovers and comparison

Reporting thresholds (for example the dollar level above which a payer must issue a 1099-NEC) change from year to year — always check the current IRS form instructions for the tax year you are filing.

Step by step — build a return-ready tax packet

Make this year’s folder. Create one folder for the tax year with three subfolders: Income, Deductions, Reference. This is the skeleton everything drops into as it arrives.
File each form on arrival, named consistently. As W-2s and 1099s come in (mostly January–February), save each as YEAR_FORM_Source.pdf — e.g. 2025_1099NEC_ClientX.pdf — straight into Income. Scan any paper forms with a phone scan mode and name them the same way.
Compile deduction support. Summarise expenses and attach the originals. If you track expenses by receipt, the combine-receipts workflow and receipts-to-expense guides build the supporting PDF.
Reconcile against last year. Open your prior-year return and confirm every recurring income source has shown up. A 1099 you got last year but not this year is the kind of gap worth chasing before you file.
Merge into one ordered packet. Combine the documents with Merge PDF in order — checklist, income forms, deductions, reference — and add page numbers so your preparer can cite anything by page.
Redact when sharing narrowly; encrypt when sharing fully. For limited disclosures (e.g. proving income), use Redact PDF to truly remove identifiers; for the full packet to your preparer, password-protect it with Protect PDF and share the password separately.
Compress, transmit securely, and archive. Compress the packet if it is large, upload to your preparer’s secure portal (or send the encrypted file), and keep the year’s folder backed up for the retention period.

PDF for accountants: the preparer’s side of this workflow.
Combine receipts into one PDF: building deduction support.
Receipts to expense report: OCR and summarise receipts.
Fill a W-9 online free: the form contractors complete for payers.
How to redact a PDF: removing SSNs the right way.
Merge PDF tool: assemble the packet in your browser.
All ScoutMyTool PDF tools: the full toolkit.

FAQ

What is the difference between a W-2 and a 1099, and why do I get one or the other?: A W-2 reports wages paid to an employee, along with the income, Social Security, and Medicare taxes the employer withheld during the year. A 1099 — most commonly the 1099-NEC for contractors — reports income paid to someone who is not an employee, with no tax withheld. If you were on payroll you get a W-2; if you did freelance or contract work you get a 1099-NEC from each client who paid you above the IRS reporting threshold for that year. Many people receive both: a W-2 from a day job and 1099s from side work. Your job at tax time is to gather every one of them, because each was also reported to the IRS and a missing one triggers a mismatch.
How should I organise all these PDFs so nothing gets lost?: Use one folder per tax year, and within it group by type: Income (W-2s, 1099s), Deductions (receipts, logs, 1098s), and Reference (prior return, correspondence). Name each file so it is identifiable at a glance — for example 2025_W2_AcmeCorp.pdf or 2025_1099NEC_ClientX.pdf — with the year first so files sort chronologically. As documents arrive in January and February, drop them straight into the right subfolder rather than letting them pile up in email or downloads. When everything has arrived, you assemble a single packet from the folder. This structure also makes next year trivial: copy the empty skeleton and start filling it.
Should I combine everything into one PDF for my accountant?: A single, well-ordered packet is usually what a preparer prefers over a dozen loose attachments. Merge the documents in a logical order — a cover summary or checklist first, then income forms (W-2s, then 1099s), then deduction support, then reference items — and add page numbers so anything can be referenced by page. Keep the individual originals too; the merged packet is for transmission and review, the originals are your source records. If your preparer uses a secure client portal, upload there rather than emailing; if you must email, password-protect the file because it is full of sensitive identifiers.
How do I protect Social Security numbers and other sensitive data in these PDFs?: Tax documents are dense with exactly the data identity thieves want: full name, address, Social Security or taxpayer ID number, and financial figures. Two protections matter. First, when sharing a document with anyone who does not need the full identifier — say, proving income to a landlord — redact the parts they do not need, using true redaction that removes the underlying text rather than a black box that can be peeled off. Second, when transmitting the full packet to your preparer, password-protect (encrypt) the PDF and share the password through a separate channel. Never email an unencrypted tax packet, and prefer a secure portal when one is offered.
How many years do I need to keep tax records?: The IRS frames retention around the period of limitations for the return. The general rule is to keep records for three years from the date you filed, but it is longer in specific situations: six years if you under-reported income by more than 25%, seven years if you claimed a loss from worthless securities or a bad-debt deduction, and indefinitely if you did not file or filed a fraudulent return. Records connected to property should be kept until the period of limitations expires for the year you dispose of the property. Because the right answer varies, many people keep seven years of full packets to be safe. Always check the current IRS guidance for your situation.
A form arrived as a paper document — how do I get it into my digital packet?: Scan or photograph it, ideally with a phone "scan" mode that deskews and applies contrast, then save it into the right folder with the standard naming. A scan is an image, so if you want the text to be searchable later, run an OCR pass to add a text layer — useful for finding a figure across a big packet, though not required just to include the page. Verify the scan is fully legible (every digit on the form readable) before you discard or file away the paper, since a blurry W-2 scan is worse than useless if a number cannot be read.
Is it safe to use an online PDF tool for tax documents?: Tax documents are about as sensitive as personal paperwork gets, so prefer a tool that processes files locally rather than uploading them to a server. ScoutMyTool runs its PDF operations — merging, redacting, encrypting, compressing — entirely client-side in your browser tab, so your W-2s and 1099s never leave your machine. If you use any cloud-based tool for tax PDFs, confirm it does not retain your files and ideally that it offers a clear privacy commitment, and password-protect anything before it travels.

Not tax advice. This article covers organising tax documents as PDFs, not how to file or what to claim. Thresholds, forms, and rules change yearly — consult the current IRS instructions and a qualified tax professional for your situation.

Citations

IRS — “How long should I keep records?” — retention periods tied to the period of limitations. irs.gov — How long should I keep records
IRS — “About Form 1099-NEC, Nonemployee Compensation” — current form and instructions (check for the year’s reporting threshold). irs.gov — About Form 1099-NEC
IRS — “About Form W-2, Wage and Tax Statement” — the wage-reporting form employees receive. irs.gov — About Form W-2

Assemble your tax packet privately

Merge, redact, encrypt, and compress your W-2s and 1099s with ScoutMyTool’s in-browser PDF tools — your tax documents never leave your machine.

Open Merge PDF →