Tax filers need clarity about W9 forms

“Exactly. They actually really do not have ALL the info, at least based on the tax system and rules we have. If you are earn wages as a W2/1099, then they know that. But they don’t know anything not subject to information return reporting. For example, if you’re making money on a cash-only basis. Similarly, for deductions and credits - if you have a dependent they don’t know where the kid actually lived during the year. If the parents are divorced the IRS really doesn’t know (without doing a lot”

“You wouldn't be able to issue yourself a 1099 anyways (in either case), and the fact that you're asking suggests your understanding of the tax code/rules is weak at best Also, at your income level, there's no guarantee the savings would even be worth it. You'd need to go through the entire calculation, plus penalties and interest. I doubt it would be even before penalties and interest [re: Can I elect S Corp retroactively for 2025 for my biz even if I already filed a Sch C?]”

“Small thing, but it's Form W-9, with the hyphen. The IRS is consistent about that one, at least. [re: W9 request]”

“Ask your tax person. We have to issue them for anyone receiving over $600 in a calendar year [re: W9 request]”

“They almost certainly handed her a W-9, not a 1099. She does not fill out a 1099 or a W-2. A W-9 is what a payer collects so it can issue a 1099-NEC later. An employee fills out a W-4. Giving her a W-9 means the store is setting her up as a contractor. Signing it does not make that classification right. The test is control and the relationship, not the form. Full-time bookstore work, on their schedule, at their store, for their customers, is an employee fact pattern. A real contractor usually co”

“Yeah she didn't know. I talked to her and they mostly likely gave her a W9 tax form. She just started a few months ago.”

“$500 is on the cheaper end what you have. I’d charge you 1k for that return. But the general answer is if you have more complexity, you typically pay more. More income (usually) doesn’t mean more complexity assuming the underlying investment is the same.”

“Thank you so much for your help. I let my new employer know that I’m not filling out a W-9 & I need a W-4.”

“The 1099 is a business, even if they’re a small one. They can write off the same expenses any business can. The W-2 is an employee. Employees are not businesses. Therefore no business expenses. It’s not really about incentivizing people one way or another. It’s that 1099s are treated as a business, because they are.”

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“To clarify -- is the $900/mo tutoring income on a 1099 and the $46K/yr salary on a W-2? If that's the case, then your best bet is to submit a new W-4 to your employer. Check Single, don't check the multiple jobs box, and put $125 on Line 4(c) (assuming you get paid twice per month or every two weeks). That way all your taxes will be paid through withholding and you won't have to worry about saving and paying later. For 2026, depending on your withholding to date, you might even get a”

“Thanks everyone for the advice! I agree that the company has been generous to offer a refund and I see no harm in completing a W-9. I think it's primarily because of the way their business software is set up. Thanks all!”

“Hopefully it's the correct way to go about it too, sure it let me proceed but that doesn't necessarily mean it's correct lol”

“W-2 and 1099 income are processed on the same tax return. 1099 income will result in a smaller refund; no need to put money aside.”

“Yes, they combine all sources of income to arrive at your taxable income, and they add all sources of payments including withholdings, estimated tax payments and credits together to determine if you have a balance due or a refund. Nothing is processed seperately.”

“W9 is what you give him to fill out before you pay. he puts his info on there so you can issue the 1099 later. if he's an individual and not a corporation you'll need to send him a 1099-NEC by January 31st next year for the amount you paid”

Are they going to may you more to make up the tax difference?

“If you make less than $300 per paycheck then you're gonna start making barely anything once you have to pay your share of employment taxes as a 1099 worker”

“This is irrelevant, though, because it's not income. It's just a payment issued by a system that requires a 1099 before it will generate a check.”

“Many accounting software programs do require a 1099 now for anyone the system issues a check to. It has nothing to do with being income or being taxable.”

“not a big deal at all and is fairly normal for a company to put that requirement in as a safeguard for anyone they may issue a check to. there's nothing worse than an audit --- state, fed, sales tax, unemployment etc etc than having that auditor require one and you have to try and get someone to give you one after the fact if you're no longer doing business with them --- worst case would be they mistakenly sent someone a 1099 (not you as you'd be under 600) and that person would simp”

“Go ahead. They need it in order for their computer to generate a payment. You will not get a 1099.”

“No cause the threshold is $2500 and they wouldn't have even qualified under last year's threshold of $600.”

“This is not standard practice for a refund specifically. A W9 is normally used when a business expects to report income paid to you on a 1099.”

“On one hand, yes you shouldn't receive a 1099 at the end of the year since you're not providing any services, rent, etc. but it is usually a best practice for businesses to always get a W-9 to whomever they cut a check to.”