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2021 4.8 Satisfied (149 Votes)
2017 4.3 Satisfied (73 Votes)
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2000 3.8 Satisfied (24 Votes)
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Form 1099 is a tax information return that reports income received outside of wages, salaries and tips. There are three different versions, each with different purposes: Form 1099-NEC reports how much a business paid annually to nonemployees, including independent contractors.
A W-9 form provides taxpayer information, is completed by the contractor, and is maintained by the business. A 1099-NEC is completed by the business and provided to the independent contractor as well as the IRS.
The IRS 1099 Forms are a group of tax forms that document payments made by an individual or a business that typically isnt your employer. The business that pays the money fills out the form with the appropriate details and sends copies to you and the IRS.
A form W-9 is used to collect a contractors tax information. A form 1099 is used to document any payments that a client has made to a contractor, if those payments total more than $600.
A workers role determines which information return an entity would provide. Entities provide a Form 1099-Misc to independent contractors and Form W-2 to employees.
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The difference between 1099 vs W-9 is a straightforward one: the contractor fills out the W-9 form to provide information to the business they work for, and that business later reports the contractors yearly earnings on the 1099 form.

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