What Is a W-9 Form, and When Do You Need One?

Form W-9 gives you all the information you need from a contractor (or a business you’ve traded services with in barter) so that you can file a Form 1099-NEC or Form 1099-MISC.

It’s up to you to collect Form W-9 from individuals and businesses. But in order to do it right, you need to understand how Form W-9 relates to the different types of Form 1099, and what your obligations to the IRS are. Let’s go through some of the common questions about Form W-9, how and when to collect it from contractors, and what to do with it.

Key takeaways

• A Form W-9 gives you a contractor’s legal name and taxpayer identification number (TIN). You’ll never send it to the IRS, but you keep it on file to reference as you work on 1099s.

• Ask for a W-9 before you make the first payment to a contractor. For 2026 taxes, you’ll need one from contractors that you pay $2,000 or more (in order to file their 1099).

• If a contractor refuses to give you a TIN, you’ll need to start withholding 24% from their payments.

• Keep every W-9 in your records for four years, in case the IRS or contractors have questions.

What is Form W-9?

If you hire and pay any contractors, you’ll use Form W-9 to collect their legal name, tax classification, address, and taxpayer identification number (TIN). You later use that information to fill out and file a Form 1099, which reports how much you paid a contractor over the course of the year.

Unlike other tax forms, you don’t file Form W-9 with the IRS. After the contractor completes Form W-9 and sends it to you, you keep it for your own records: You’ll later refer to it while filling out a Form 1099 (usually after year-end).

Since you’re also required to file a Form 1099-MISC for anyone you exchanged goods or services with in barter over the course of the year, you’ll need a Form W-9 from those individuals or businesses too.

What’s the difference between Forms W-9, W-4, and 1099?

You may have also heard of a Form W-4. The difference between W-9, W-4, and 1099 comes down to who collects them, who fills them out, and whether they’re ultimately sent to the IRS or not.

Here’s a quick comparison:

How do you know whether someone is a contractor or an employee? We wrote about this in our guide to 1099 vs. W-2 workers.

When should you request a Form W-9?

You should ask contractors or vendors for a Form W-9 before you make the first payment to them. According to the IRS, once you’ve decided someone is doing work for you as an independent contractor, having them fill out Form W-9 is your very first step.

Who do you need to collect Form W-9 from? The $2,000 threshold for 2026 payments

For contractors you’ve worked with in 2026, you’ll generally file Form 1099-NEC if you paid them $2,000 or more during the year. The same threshold applies for Form 1099-MISC: If you paid $2,000 or more in rent or for veterinary services in 2026, say, you’ll need a W-9 from your landlord or vendor. These amounts have increased from previous years, when the threshold was $600.

How do you get a Form W-9 from a contractor?

If you expect to pay a contractor $2,000 or more over the course of the year, it’s a good idea to request a Form W-9 as soon as you start doing business with them. That way, when it’s time to complete Form 1099 during tax season, you’re saved the trouble of chasing down W-9s. It also avoids potential complications if the contractor refuses to submit a Form W-9 later on.

You may not always know whether a contractor will cross that $2,000 threshold by the end of the year. In these cases, consider still requesting a Form W-9 before paying them for the first time, so you’ll be prepared if you do end up needing one.

From there, it’s the contractor’s responsibility to complete Form W-9 and send it back to you. Some owners find it easier to fill out parts of Form W-9 (like entering their own name and address), then sending it to a contractor to complete and return.

Should I file a Form W-9S?

No. Form W-9S relates to student loans, and you should not use it to collect information from contractors.

How do you fill out Form W-9?

Form W-9 is short. It’s one page to fill out, with the rest being IRS instructions.

Some more good news: It’s the contractor’s responsibility to fill out the bulk of the form. If you choose, you can enter your name and address on the form, but it’s not required.

Here’s a quick breakdown, so you understand what you’re looking at when a contractor sends you Form W-9:

Line 1. This is where the contractor’s name goes, exactly as it appears on their tax return. If they operate as a sole proprietor or single-member LLC, they’ll enter their first and last name here. For LLCs, partnerships, or corporations, they’ll enter the business name on this line.

Line 2. If the contractor uses a business name, trade name, or DBA that’s different from the name on Line 1, it goes here. This is common for sole proprietors and single-member LLCs, where Line 1 is the owner’s name and Line 2 is the business name.

Line 3a. The contractor specifies their federal tax entity here: whether they’re an individual/sole proprietor, C corporation, S corporation, partnership, trust/estate, or LLC.

Line 3b. Only applies if the contractor is a partnership, trust, or estate (or an LLC taxed as a partnership) that has any foreign partners, owners, or beneficiaries. In that case, they check this box. Most contractors will leave it blank.

Line 4. If the contractor qualifies for any tax exemptions, they enter the information here.

Line 5. The contractor’s address.

Line 6. The contractor’s city, state, and zip code.

Line 7. The contractor’s account number with you, if they have one.

Requester’s name and address (optional). This is the only part of the form you need to worry about filling out, and it’s totally optional. If you like, you can enter your name and address here before sending Form W-9 to a contractor to be completed and returned.

Part I. Here, the contractor provides their taxpayer identification number (TIN). Individuals usually enter a Social Security number here, while businesses will enter an employer identification number.

Part II. The contractor certifies that the information they have provided is true. Then they sign and date the form.

How do Form W-9 and Form 1099 work together?

Form W-9 is a small but important part of a larger “ecosystem” of forms used to report payments to contractors.

In particular, it’s essential if you intend to file a Form 1099. You’ll need all the information on Form W-9 to complete Form 1099.

Here’s how you’ll use both forms together, following the IRS’s instructions:

1. When you start working with a contractor, you request a Form W-9. They send it to you.

2. You keep the Form W-9 from your contractor on file.

3. After the close of the tax year, you complete two copies of Form 1099 using the information on Form W-9, including the total amount you paid the contractor over the course of the year.

4. You submit one copy of Form 1099 to the contractor for their files. It’s due January 31.

5. You submit a second copy of Form 1099 to the IRS. Form 1099-NEC is due January 31, while Form 1099-MISC is due February 28 on paper or March 31 if you file online.

For your records, keep every Form W-9 on file for at least four years after you receive it. Unless the contractor’s information changes, you can use the same form from one year to the next to complete Form 1099.

Which types of 1099s will you file and receive?

There are many types of Form 1099, each covering a different kind of payment, but only a handful matter for most small businesses—whether you run a farm, ranch, construction operation, or property management company.

Here’s an overview of each type of Form 1099 you may find yourself filing or receiving:

Form 1099-NEC for owner-operators

Form 1099-NEC reports non-employee income. In other words, any payments you make for services to people and businesses that aren’t on your payroll. That includes everyone from short-term fieldworkers who don’t qualify as employees, to drywall subcontractors, to the freelance graphic designer who created a logo for your business.

Form 1099-MISC for owner-operators

Form 1099-MISC is for “miscellaneous” payments. That’s a broad term, but for many operations it usually takes the form of rent, payments in barter, veterinary fees, and proceeds from crop insurance. You can learn more from our guide to Form 1099-MISC.

Form 1099-PATR for owner-operators

If you’re part of a cooperative, you may receive a patronage dividend from them. In that case, they will send you a copy of Form 1099-PATR. For a detailed guide, check out our article on Form 1099-PATR.

Form 1099-G for owner-operators

If you receive a payment from the USDA or from any other government agency, they may send you a Form 1099-G. Qualifying payments include unemployment compensation, state or local income tax refunds, grants, and USDA payments like ARC, PLC and CRP. Read our guide to Form 1099-G for more details.

Form 1099-A for owner-operators

If you lose a piece of property due to foreclosure, or if you abandon it, a lender may send you a copy of Form 1099-A. Learn more from our guide to Form 1099-A.

What if you don’t receive a Form W-9 from a contractor?

A contractor or business may forget to send you Form W-9, or they may send you one that’s incomplete. In either case, it’s up to you to follow up with them and get a completed copy of the form.

If you don’t receive a W-9 from a contractor, you won’t have the information you need to file an accurate Form 1099. The amount you paid them is generally still a deductible business expense, but missing or incomplete records can make that harder to support if the IRS has questions. This could significantly increase your tax bill.

Plus, there can be penalties if you don’t collect a W-9 and subsequently fail to file Form 1099 (or file an inaccurate one):

• If the IRS discovers you failed to file Form 1099 or filed an inaccurate form, you could be penalized anywhere from $60 to $340 for each form due in 2027, depending on how late you correct it.

• You’re expected to start backup withholding payments to a contractor who hasn’t given you a TIN, and you could be held liable for amounts you should have withheld but didn’t.

What to do if a contractor refuses to give you a Form W-9

Some contractors, particularly ones who are paid in cash, may refuse to complete a Form W-9.

Here are the steps to take if a contractor refuses to complete Form W-9 for you:

1. Document every attempt to request Form W-9. You’re expected to make the “initial solicitation” (in the IRS’s words) when you begin working with them. You then make a “first annual solicitation” by December 31 of the current tax year, and a “second annual solicitation” before December 31 of the following tax year. Make these requests in writing, like via email or regular mail.

2. Start backup withholding. This means you withhold 24% from each payment to the contractor until they give you a TIN. You don’t need to wait for a letter from the IRS.

3. Deposit the withheld tax with the IRS and report it on Form 945 (Annual Return of Withheld Federal Income Tax).

4. You’re still required to file a Form 1099 for the contractor. Complete the form to the best of your ability and submit both copies. For the contractor’s TIN, enter “REFUSED” and show the amount withheld in box 4. You must file this form on paper, since the IRS e-file service won’t allow you to submit incomplete forms.

5. If the IRS later sends you a CP-2100 or CP-2100A letter noting missing TINs, follow its instructions.

The IRS will not penalize you for failing to get a Form W-9, but if you follow the steps above, the contractor will likely face penalties.

Penalties for late or incorrect 1099s

While you wouldn’t face penalties if a contractor didn’t provide you with a W-9, you will be penalized if you don’t file a 1099. The IRS charges a penalty for each Form 1099 you don’t file correctly and on time, and a separate penalty for each copy you don’t give the contractor.

For forms due in 2026, the amounts are as follows:

The IRS might waive penalties if you can show reasonable cause for late or incorrect filing.

Do you file Form W-9 with the IRS?

You don’t need to file Form W-9; just keep it as part of your business records.

You are, however, required to file a Form 1099 for each contractor (or trading partner, in the case of barter) you paid $2,000 or more over the course of the year in 2026.

You can file Form 1099 online for free through the IRS Information Returns Intake System (IRIS), by mail, or through other third-party e-filing services. Note that if you file 10 or more information returns of any type in a year, you’ll have to file online.

Below you’ll find the 2027 filing deadlines for Forms 1099-NEC and 1099-MISC. If the deadline falls on a weekend or a federal holiday, it moves forward to the next regular business day.

How long should you keep a Form W-9?

The IRS says to keep each W-9 in your files for four years, in case the contractor or the IRS has questions. Ask for a new one if a contractor’s name, business structure, or TIN changes.

Store W-9s securely, since they contain Social Security numbers and other sensitive details. You’re required to keep TINs confidential and use them only for tax purposes.

More frequently asked questions (FAQs)

Let’s summarize some of the key details we covered about Form W-9, along with a few final questions you may have about how it works.

Do I need a W-9 if I paid a contractor less than $2,000?

For 2026 payments, no. You don’t have to file a Form 1099-NEC for payments under $2,000, but it’s still smart to ask for a W-9 when you start working with a contractor. You often can’t predict year-end totals, and you’ll need the TIN if payments end up crossing the threshold.

Is the 1099 threshold $600 or $2,000?

The $600 threshold applied to payments made through 2025. Starting in 2026, the new threshold is $2,000 threshold and the IRS will adjust it for inflation starting in 2027.

What happens if a contractor refuses to fill out a W-9?

Start withholding 24% from their payments right away and keep asking for a W-9 in writing. You’ll still need to file their Form 1099, but enter “REFUSED” for their TIN and show the amount withheld.

Do I need a W-9 from an LLC or corporation?

Request one anyway, because a W-9 tells you how a business is taxed. LLCs taxed as partnerships or sole proprietorships generally get a 1099. Corporations generally don’t, except attorneys and medical or health care providers.

Do I need a 1099 if I paid a contractor by credit card or a payment app?

Generally, no. Card and payment app transactions are reported by the payment processor on Form 1099-K, not on your Form 1099-NEC.

Can contractors fill out a W-9 electronically?

Yes. The IRS allows electronic W-9s if your system confirms who submitted the form, collects the same information as the paper form, and can produce a paper copy if the IRS asks for one.

How Ambrook helps you store W-9 information and prepare for 1099s

When you add a contractor or vendor in Ambrook, you can attach their completed Form W-9 and enter their tax information to their contact. That way, you have it on hand when tax season comes around.

Plus, you can mark contractors in Ambrook for 1099 payments tracking and map your transaction categories to 1099 boxes. At the end of the year, you’ll get a report to tell you exactly what you paid each contractor by box, and help you prepare to file. Schedule a demo today.

This resource is provided for general informational purposes only. It does not constitute professional tax, legal, or accounting advice. The information may not apply to your specific situation. Please consult with a qualified tax professional regarding your individual circumstances before making any tax-related decisions.