1099 vs W-9: What’s the Difference? | GetW9

“If you’ve ever managed contractor payments, you may have wondered about the difference: 1099 vs W-9. Are they the same?”

“Are 1099 and W-9 forms the same thing?”

The answer: No — they are very different, and understanding the difference helps you stay compliant and avoid tax penalties.

What Is IRS Form W-9?

• The Form W-9 is used to obtain data such as name, address & tax identification number from your contractors, vendors, suppliers, etc.
• The W-9 is not an annual form, it should be collected throughout the year from whomever you issue payments to.
• The W-9 does not get filed with the IRS or any agency. You keep it in your records.
• You do not need a W-9 from your employees, they would provide you with a W-4.

What Is IRS Form 1099?

• A 1099 is issued to various types of contractors, vendors, suppliers, landlords, etc. to whom you made payments during the calendar year.
• There are many types of 1099 forms, such as 1099-NEC (nonemployee compensation), 1099-MISC, 1099-INT, etc.
• A copy of the 1099 does get filed with the IRS and certain state agencies, and you also send your contractors, vendors, suppliers, landlords, etc., a copy of the 1099 after the year has ended.
• Failure to issue a required 1099 could cause you to potentially loose a deduction/expense on your business tax return.

Key Differences Between 1099 and W-9

The W-9 collects information — the 1099 reports payments.

Final Takeaway

Always collect W-9s before payment — and automate the process where possible.

“When it comes to tax compliance, understanding 1099 vs W-9 is essential for any business working with contractors.”

The W-9 collects contractor info; the 1099 reports what you paid them.

“Learn more about IRS requirements here.”