What is the Difference Between W9 and 1099?

The main difference between W-9 and 1099 forms lies in their purpose and who fills them out. Here are the key differences:

• W-9 form: This form is filled out by the independent contractor and provided to the business they work for. It contains the contractor's tax information, name, address, and taxpayer identification number. The W-9 form helps the business confirm the contractor's identity and get their tax information.
• 1099 form: This form is filled out by the employer and outlines the wages paid to the independent contractor. It is used by the IRS to document a taxpayer's income that is considered non-employee compensation. Contractors receive a 1099 form at the end of the year with the information that was provided on their W-9.

Both forms are used for tax purposes by the IRS and are required when employers work with an independent contractor. Neither a 1099 nor a W-9 form is used for full-time employees.

Comparative Table: W9 vs 1099

The main differences between W-9 and 1099 tax forms are their purpose and who fills them out. Here is a comparison table of the two forms:

The W-9 form is given to contractors, who then fill it out and provide it to their employer. The 1099 form, specifically the 1099-NEC form, is filled out by the employer and sent to the contractor and the IRS at year-end. The information provided on the W-9 form is then used to complete the 1099 form, which reports the contractor's earnings to the IRS and state tax authorities.