A W-9 and a 1099 are two halves of the same job. The W-9 is the form a freelancer or vendor fills in to give a client their name and taxpayer identification number, and it goes to the client, not the IRS. The 1099 is the information return the client later files with the IRS, and copies to you, reporting what it paid you. As of October 2026, for payments made after 2025 the general reporting threshold for forms such as 1099-NEC rose to $2,000.
So the order is always the same: W-9 first, at the start of the work, then a 1099 after the year ends. If you're a contractor, you fill in the W-9 and receive the 1099. If you're the business paying contractors, you collect the W-9 and send the 1099.
W-9 vs 1099 side by side
| Form W-9 | Form 1099 (for example 1099-NEC) | |
|---|---|---|
| What it's for | Giving your correct taxpayer identification number (TIN) to someone who has to report payments to you | Reporting the payments to the IRS and to you |
| Who fills it in | The person or business being paid | The business that paid |
| Who receives it | The requester, never the IRS | The IRS and the payee |
| When | Before or at the start of the work | After the year ends |
| Penalty risk | $50 for each failure to give a correct TIN, unless reasonable cause | Late or missing returns can bring penalties for the payer |
| Number on it | Your SSN, ITIN or EIN | The amounts paid, plus the TIN from your W-9 |
The W-9 itself says it: give the form to the requester and don't send it to the IRS. For a line-by-line walk-through of filling it in, see our W-9 form guide.
Which 1099 forms a W-9 feeds
The W-9 lists the information returns a requester might need your TIN for. They include:
- Form 1099-NEC, nonemployee compensation
- Form 1099-MISC, various types of income, prizes, awards or gross proceeds
- Form 1099-INT, interest, and Form 1099-DIV, dividends
- Form 1099-B, stock or mutual fund sales and certain other transactions
- Form 1099-S, proceeds from real estate transactions
- Form 1099-K, merchant card and third-party network transactions
- Form 1099-C, canceled debt, and Form 1099-A, acquisition or abandonment of secured property
- Form 1098, 1098-E and 1098-T, mortgage interest, student loan interest and tuition
For freelancers the two that matter most are 1099-NEC and 1099-MISC. Our 1099-MISC vs 1099-NEC guide explains which one applies to which payment.
The 1099 thresholds and deadlines
| Rule | As of October 2026 |
|---|---|
| General reporting threshold for certain information returns | $2,000 for payments in tax years beginning after 2025, and may be adjusted for inflation from 2027 |
| Attorneys' fees on 1099-NEC | $2,000 or more in the course of a trade or business |
| Gross proceeds paid to an attorney on 1099-MISC | At least $600 |
| Royalties on 1099-MISC | At least $10 |
| Form 1099-NEC filing deadline | On or before January 31, on paper or electronically |
| Form 1099-MISC filing deadline | February 28 on paper, March 31 if e-filed |
| E-filing requirement | 10 or more information returns in a year, counting all types |
Older guides still quote $600 for contractor pay. The 1099-MISC and 1099-NEC instructions now say the minimum threshold for certain payments rose to $2,000 for tax years beginning after 2025, which is the 2026 tax year.
Backup withholding: why the W-9 matters
If you don't give the requester your correct TIN, the payer may have to withhold and pay to the IRS 24% of certain payments. That's backup withholding, and the W-9 lists the payments it can apply to: interest, dividends, broker and barter transactions, rents, royalties, nonemployee pay, payment card and third-party network settlements and certain payments from fishing boat operators. Real estate transactions aren't subject to it.
You avoid it by giving your correct TIN, making the certifications on the form and reporting all your taxable interest and dividends on your return. The W-9 also sets out the penalties: $50 for each failure to furnish a correct TIN without reasonable cause, and $500 for a false statement with no reasonable basis that results in no backup withholding.
What to do as a freelancer
- Fill in the W-9 when a new client asks for it, and send it securely to them, not the IRS.
- Use the right name and number: an LLC that's a disregarded entity follows the W-9's instructions on whose name and TIN to enter.
- Keep your own record of every payment through the year.
- After January, check each 1099 against your records and ask the client to correct any error.
- Report all your income, whether or not a 1099 arrives. The 1099 is the client's report, not the limit of what's taxable.
What to do as the business paying
- Ask every new contractor for a W-9 before the first payment.
- Track payments per contractor through the year against the $2,000 threshold.
- File 1099-NEC with the IRS and give the contractor a copy by January 31.
- E-file if you have 10 or more information returns in total. Our Form 1099-NEC guide covers the boxes.
- Keep the W-9 on file for your records.
The verdict
Don't think of it as W-9 or 1099: it's W-9 then 1099. Collect or give the W-9 at the start, because a missing tax number is what triggers 24% backup withholding, and leave the 1099 until the year closes. And if you're still using a $600 rule for contractors, update it: for 2026 payments the figure the IRS gives is $2,000.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
Frequently asked questions
What's the difference between a W-9 and a 1099?
A W-9 gives a payer your name and taxpayer identification number. A 1099 is the information return the payer files with the IRS, and copies to you, reporting what it paid you.
Do I send a W-9 to the IRS?
No. The form says to give it to the requester and not send it to the IRS.
Who fills out a W-9?
The person or business being paid, such as a freelancer, contractor or vendor, when a payer asks for it.
When do I get a 1099-NEC?
The payer must file Form 1099-NEC on or before January 31, and you should get your copy around then.
What is the 1099 threshold for 2026?
For tax years beginning after 2025, the minimum threshold for certain payments on returns such as 1099-NEC increased to $2,000.
What happens if I don't return a W-9?
The payer may have to apply backup withholding at 24% on certain payments, and you can face a $50 penalty for each failure to give a correct TIN.
