What is w9 vs 1099?

[molly]

I want to understand what is w9 vs 1099 and how they are different. When should each form be used? A quick example of how businesses use them would be helpful.

 

[grace]

W-9 is what a freelancer or contractor fills out to give a business their tax info, and then at the end of the year the business sends them a 1099 showing how much they were paid, so W-9 comes first and 1099 comes later.

 

[Watson]

The difference between a W-9 and a 1099 comes down to purpose and timing. A W-9 form is filled out by a contractor or freelancer to provide their taxpayer information (like name and Tax ID) to a business. A 1099 form (usually 1099-NEC) is then issued by the business at year-end to report how much that contractor was paid to the Internal Revenue Service. In short, the W-9 collects information upfront, while the 1099 reports income later for tax filing.

 

[alinajoseph]

A W-9 Form and a 1099 Form serve different purposes. A W-9 is filled out by contractors or freelancers to provide their taxpayer information to a business. A 1099 is then issued by that business to report payments made to the contractor to the Internal Revenue Service. In short, W-9 collects details, while a 1099 reports income for tax filing purposes.