Navigating Tax Season: A Guide to Understanding W-9, 1099, W-4 and 1040 Forms

As tax season approaches, individuals can expect to receive a variety of tax forms, including W-2, W-9, and 1099 forms. The type of form you need to fill out will depend on your employment status and other determining factors. Before diving into the details, it’s helpful to understand the purpose of each form.

One such form is the W-9. This form is used to provide identifying information such as your Social Security number or tax identification number. You may be asked to fill out a W-9 if you’re a freelancer or gig worker earning more than $600 or if you have a financial account that provides extra income. The information on the W-9 is used to prepare other forms, such as the 1099.

The 1099 form Is used to report income that isn’t directly earned through an employer. There are several types of 1099 forms, including the 1099-G, which is used to report a state or local tax refund, and the 1099-K, which is used to report income from platforms like Etsy, Airbnb, and Venmo.

Another form, the W-4, is required for direct employees and informs the employer of the federal income tax to be withheld from paychecks. It should be filled out at the start of the job and updated if needed. The IRS provides a tax withholding estimator.

Finally, the W-2 form documents your yearly earnings and tax withholding from your employer(s) and is required to be included in your individual tax return filed using the 1040 form. The 1040 form is used to report your income sources, deductions, credits, and other relevant information.

Information regarding the different kinds of forms was based on a report by USA Today on January 12, 2023.