1099-R,1099-K, W-4, W-2, W-9, 1040 and more: What are these forms when filing your taxes?
Tuesday's tax deadline is fast approaching, which means you should have received all your tax forms already. If you haven't looked at them yet, all those numbers and letters — W-2, W-9, 1099 — can start to feel like a mishmash very quickly.
Some forms were sent directly to you and there's no further action you need to take besides, in some cases, documenting it in your overall tax return. There are other tax forms, though, you'll need to complete yourself.
Many types of forms you're required to complete will depend on your employment status (i.e. whether you're self-employed or not), but there are a lot of other determining factors besides that.
Tax deadlines 2023: When is the earliest you can e-file? When does IRS Free File open?
IRS tax backlog: It's smaller leading into 2023 tax season than it was in 2022
So before you get deep into the nitty-gritty , it's worth taking a moment to understand the purpose of the many forms you'll likely interact with.
What is a W-9 used for?
A W-9 is a type of form where you provide identifying information such as your Social Security number or tax identification number.
A typical reason for filling out a W-9 is if you're an independent contractor, freelancer or gig worker likely to earn more than $600. You may also be asked to fill out a W-9 when you open an interest-bearing bank account or other kinds of financial accounts that provide extra income.
This form doesn't get sent to the Internal Revenue Service. But the information you provide on a W-9 will be used to prepare other forms, namely 1099s.
IRS delays $600 reporting rule: 1099-K tax reporting for Venmo, PayPal, CashApp and more postponed
Making money in the gig economy?: Avoid these 5 tax mistakes
Is a W-9 the same as a 1099?
The main difference between a W-9 and 1099 is that you fill out a W-9 while the business or entity you're earning income from fills out the 1099. In most cases, you should have received the form by Jan 31.
A 1099 form is used to report income that isn't directly earned through an employer. Because there are many different ways to make money outside of a traditional job, there are several types of 1099 forms.
Need more time?: If you can't make the April 18 tax deadline, file an extension now. Here's what to know.
Weather delayed: When is the final day to file taxes in 2023? Did the tax deadline get extended?
Common1099s you might see: 1099-G, 1099-K, 1099-R, 1099-Div
Some of the most common 1099s you may receive:
-
1099-G: details any state or local tax refund last year that's considered income.
-
1099-K: summarizes any income you earned $20,000 from more than 200 transactions on sites like Etsy, Airbnb and Venmo.
-
1099-R: reports distributions of $10 or more from various types of retirement plans, annuities, pensions, insurance contracts, or other similar accounts.
-
1099-Div: used by banks and other financial institutions to report dividends and other distributions to taxpayers and to the IRS.