W-9 vs 1099: What's the Difference and Who Files Each?
A W-9 gives the payer your TIN and stays with the payer. A 1099 reports payments to the IRS and the vendor. Here is how they connect, with 2026 thresholds.
A W-9 and a 1099 are two ends of the same process. The vendor (the payee) fills out Form W-9 to give its taxpayer identification number (TIN) to the business paying it, and the form stays with that business; it is not sent to the IRS. After year-end, the payer uses that information to file Form 1099-NEC or 1099-MISC, an information return that goes to both the IRS and the vendor.
General information, not tax or legal advice.
The short answer
| Form W-9 | Form 1099-NEC / 1099-MISC | |
|---|---|---|
| Who fills it out | The payee (vendor), to give its correct TIN to the payer | The payer, for each person it paid reportable amounts to in the course of its business |
| Who sends it to whom | The payee gives it to the requester (the payer) | The payer furnishes a copy to the recipient and files it with the IRS |
| Does it go to the IRS? | No. The form says: "Give form to the requester. Do not send to the IRS." | Yes |
| When | At the start: the initial TIN request is made when the account is opened or the transaction occurs | After year-end, starting January 31 (see due dates below) |
| What it contains | Name, federal tax classification, TIN, and the payee's certifications | Amounts paid during the year, each in its proper box, such as nonemployee compensation in 1099-NEC box 1a or rents in 1099-MISC box 1, plus any backup withholding |
For how both forms fit alongside W-8s, ACH forms and other vendor paperwork, see our vendor tax documents guide.
Why this matters in a real workflow
A W-9 that wasn't collected at onboarding becomes a scramble in January. IRS instructions say to report each payment in the right box because the IRS uses that information to check whether the recipient reported the payment (Instructions for Forms 1099-MISC and 1099-NEC). In our view, that check depends on the 1099 carrying the name and TIN the vendor gave you on the W-9.
A missing W-9 also affects payments. The IRS says you must withhold 24% from reportable nonemployee compensation if the payee hasn't provided a TIN as required (IRS: Forms and associated taxes for independent contractors).
What the IRS says
Form W-9: the payee's TIN, kept by the payer
You use Form W-9 to give your correct TIN to a person or business that has to file an information return with the IRS, for example to report income paid to you (About Form W-9). The TIN can be an SSN, ITIN, ATIN or EIN (Form W-9, Rev. March 2024). Only U.S. persons use it; our guide on who needs to fill out a W-9 covers foreign vendors and W-8 forms.
Once you've decided the person you're paying is an independent contractor, the IRS says the first step is to have them complete Form W-9. By signing, the payee certifies four things: the TIN is correct (or one has been applied for); they are not subject to backup withholding; they are a U.S. person; and any FATCA code is correct.
Forms 1099-NEC and 1099-MISC: the payer's information return
You generally report a payment on 1099-NEC if all four of these apply: you paid someone who isn't your employee; it was for services in your trade or business (which includes government agencies and nonprofits); the payee is an individual, partnership, estate or, in some cases, a corporation; and you paid them at least $2,000 during the year.
For 2026, most 1099-MISC boxes, including rents, prizes and awards, other income and medical payments, use the $2,000 threshold. Some don't: royalties stay at $10, attorney gross proceeds at $600, and any fishing boat proceeds are reportable.
The general threshold, which also applies to backup withholding, rose from $600 to $2,000 for payments made in 2026 and later. It is indexed for inflation starting in 2027; the IRS hasn't published the 2027 amount yet. See our 1099 threshold for 2026 post.
Due dates. Form 1099-NEC is due to both the recipient and the IRS by January 31, whether you file on paper or electronically. Form 1099-MISC goes to recipients by January 31 and is due to the IRS by February 28 on paper, or March 31 if e-filed. If a due date falls on a Saturday, Sunday or legal holiday, it moves to the next business day. January 31 and February 28, 2027 are Sundays, so by our calculation the practical dates for 2026 forms are Monday, February 1, 2027 (1099-NEC, and 1099-MISC recipient copies) and Monday, March 1, 2027 (paper 1099-MISC); confirm on IRS.gov/TaxCalendar (IRS Publication 1099). See our 1099-NEC deadline for 2027 post.
Form 1099-K is separate
Payments you make by credit card or through third-party payment networks are reported by the payment settlement entity on Form 1099-K; you don't report them on 1099-NEC or 1099-MISC. Payment apps and marketplaces file a 1099-K only when a payee has over $20,000 in payments and over 200 transactions in a year (IRS: Form 1099-K threshold FAQs, IR-2025-107).
What happens when there's no W-9: backup withholding
The backup withholding rate is 24% (IRS: Backup withholding). The IRS treats a TIN as missing if it isn't provided or is obviously wrong, and backup withholding applies until you get one (IRS Publication 1281). If you backup withhold from a vendor, you must file a 1099-NEC for them regardless of the amount paid, even under the $2,000 threshold, and report the withholding in box 4. A payee who had backup withholding reports it on their tax return for the year they received the income.
Recommended workflow: how the two forms connect
This is our recommended practice for payers, not an IRS procedure.
- Onboarding (AP): Request the W-9 before the first payment. IRS rules call for an initial TIN request when the account is opened or the transaction occurs; if you don't get it, backup withholding begins (26 CFR 301.6724-1). See how to request a W-9 from a vendor.
- During the year (AP): Record how each vendor is paid and keep running totals. Flag card payments, which go on 1099-K.
- Year-end (bookkeeper): Chase any missing TINs. If you didn't get a TIN at onboarding, IRS rules call for a first annual request by December 31 of the year the account opened, or by January 31 for accounts opened in December.
- Filing (bookkeeper or outside accountant): Compare each vendor's total with the thresholds, then prepare 1099s from the W-9 data and file and furnish by the due dates above.
Exception path. If a W-9 shows an obviously wrong TIN or an unexpected classification, pause before the next payment and bring it to your tax adviser. Don't correct a vendor's W-9 for them.
Example scenario
Example scenario: Harborview Design Studio, a made-up firm, collects a W-9 from every new U.S. vendor at setup. In 2026 it pays a freelance photographer $3,500 by ACH for services, a freelance illustrator $1,500 by check, a web developer $4,000 by company credit card, and an individual landlord $2,400 a month in office rent. At year-end, the bookkeeper flags the photographer for a 1099-NEC, since all four NEC tests are met, and the landlord for a 1099-MISC for rent. The illustrator is under $2,000 and had no backup withholding, so no 1099-NEC is generally required for that vendor. The developer's card payments are reported by the payment settlement entity on 1099-K, not by Harborview.
Common mistakes
- Quoting $600 from the W-9 itself. The exemption chart on the current March 2024 W-9 still refers to payments over $600; a June 2026 draft updates it to $2,000. Don't quote the $600 line as current law. Several other IRS pages are also out of date; for 2026 payments, use the December 2026 1099-MISC/NEC instructions.
- Filing a 1099-NEC for card payments. Those go on 1099-K from the payment settlement entity.
Checklist
- W-9 requested before each new U.S. vendor's first payment
- Name, tax classification and TIN on each W-9 reviewed
- Missing TINs chased before December 31
- Vendors with backup withholding flagged for a 1099-NEC regardless of amount
- 2027 due dates confirmed on IRS.gov/TaxCalendar
How W9Vault supports this workflow
You send the vendor a secure upload link that expires after 7 days. Files are encrypted in the vendor's browser before upload, so the server never receives the plaintext file. Uploads can be PDF, JPG or PNG up to 20 MB, and one request can ask for several documents at once, chosen from W-9, W-8BEN, ACH form, Invoice, Contract and Government ID. Your dashboard shows whether each request is sent or completed.
Uploaded files are automatically deleted 30 days after upload for completed requests, so keep your retained copy in your own records. W9Vault doesn't file 1099s. W9Vault is designed to support a secure collection workflow; the customer remains responsible for their own tax, recordkeeping and security obligations.
Collect the W-9 now, not in January
Send each new vendor a secure, expiring upload link for their W-9 at onboarding, and see when the request is completed.
Frequently Asked Questions
No. The form says to give it to the requester and not to send it to the IRS. The business that asked for it uses the information to file information returns, such as a 1099.
A W-9 doesn't guarantee a 1099. For 2026 payments, a 1099-NEC is generally required only when you were paid at least $2,000 for services and the other conditions are met. Card and payment-network payments are reported on Form 1099-K instead.
Generally $2,000 for 1099-NEC and most 1099-MISC boxes, up from $600. Some amounts differ: royalties at $10 and attorney gross proceeds at $600. The threshold is indexed for inflation starting in 2027, and the IRS hasn't published the 2027 amount yet.
The rule is January 31, to both the recipient and the IRS. January 31, 2027 is a Sunday, so by our calculation the practical date is Monday, February 1, 2027. Confirm on IRS.gov/TaxCalendar.
Official resources
- About Form W-9 and Form W-9, Rev. March 2024 (PDF)
- Instructions for Forms 1099-MISC and 1099-NEC
- IRS Publication 1099: General Instructions for Certain Information Returns
- IRS: Forms and associated taxes for independent contractors
- IRS: Form 1099-K threshold FAQs (IR-2025-107)
- IRS: Backup withholding and IRS Publication 1281 (PDF)
- 26 CFR 301.6724-1
