1099-NEC vs W-9

These two forms are constantly confused because they sit at opposite ends of the same relationship. One is collected before the money moves and never leaves the payer's filing cabinet. The other is filed after the year ends and goes to the IRS.

Form W-9: collected, not filed

A US business asks a contractor to complete Form W-9 before paying them. It carries the contractor's name, business type, address and taxpayer identification number. The payer keeps it; it is not sent to the IRS.

Form 1099-NEC: filed, not collected

After the year ends, the payer reports non-employee compensation on Form 1099-NEC — one copy to the IRS, one to the contractor. It is built from the details on the W-9 and the amounts actually paid during the year.

Who does what

  1. The contractor completes the W-9

    Once, at the start of the relationship, and again if their name, entity type or identification number changes.

  2. The payer keeps it and pays the invoices

    The W-9 sits on file. Nothing about it appears on an invoice.

  3. The payer files the 1099-NEC after the year end

    For contractors they paid above the reporting threshold in force for that year. Both the threshold and the filing deadline are set by the IRS and have changed in recent years, so check the current figures at the source rather than from memory.

  4. The contractor reconciles

    The 1099-NEC should broadly match what you invoiced and were paid within the calendar year. Timing differences at the year boundary are normal; a large gap is worth querying.

What a contractor should do

  • Send a completed W-9 when a new US business client asks, before the first invoice
  • Use an EIN on it rather than your Social Security number where you can
  • Keep your own record of every invoice paid, by date received
  • Compare each 1099-NEC against that record when it arrives, and query real gaps

Make a contractor invoice

Common questions

Do I send a 1099-NEC to my client?
No. The payer files it. As a contractor you complete the W-9 and receive a copy of the 1099-NEC afterwards.
What if no 1099-NEC arrives?
Report the income anyway from your own records. A missing form does not remove the obligation, and your invoice history is the evidence you file from.
Does a foreign contractor complete a W-9?
No. A non-US person completes a form in the W-8 series instead. If a US client sends you a W-9 and you are not a US taxpayer, say so rather than filling it in.

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