Tax Day is on the horizon, which means it’s nearly time to start gathering your tax documents. If you haven’t yet tackled them, all those acronyms—W-2, W-9, 1099—might seem quite confusing.

Some of these forms come pre-filled and are meant to be submitted to the IRS. They may be arriving in your mailbox or available for download from a “tax documents” section on a website. In many cases, all you need to do is hand them over to your tax preparer, if you use one, or fill in the relevant amounts on your tax return. Other forms, however, will require you to take some action.

Here’s a quick guide to what you need to know.

What Is the Purpose of a W-9?

A W-9 form is generally used by businesses to gather personal details like your name, address, and Social Security or tax identification number for income reporting.

You typically fill out a W-9 if you’re an independent contractor, freelancer, or gig worker. You might also be asked to complete a W-9 when opening an interest-earning bank account or other financial accounts that generate income.

Remember that this form does not go to the IRS. However, the information you provide on your W-9 will help create and fill out other forms. Keep reading for more.

How Does a W-9 Differ from a 1099?

The key distinction between a W-9 and a 1099 is who fills them out. You complete the W-9, while the business or entity that compensates you is responsible for the 1099. Typically, you should receive your 1099 by the end of January.

A 1099 form is used to report various types of income that aren’t earned through traditional employment. Due to the diverse ways people can earn money today, multiple types of 1099 forms exist.

Common Types of 1099 Forms You’ll Encounter: 1099-G, 1099-K, 1099-R, 1099-Div

Here are some of the most frequently seen 1099 forms:

• 1099-G: Reports unemployment compensation and any state or local tax refunds that are considered taxable income.
• 1099-K: Summarizes all income earned through third-party payment networks (like Etsy, eBay, or Venmo) if you made at least $5,000.
• 1099-R: Reports distributions of $10 or more from retirement accounts, annuities, pensions, insurance contracts, and similar financial accounts.
• 1099-Div: Issued by banks and financial institutions to report dividends and other distributions sent to taxpayers and the IRS.

What Is a W-4 and Its Purpose?

If you work directly for an employer, you’ll need to complete a W-4 form.

This form informs your employer how much federal income tax to withhold from your paycheck, guided by factors such as your marital status, number of dependents, and whether you hold multiple jobs.

While it’s usually filled out at the start of a job, it’s wise to update it regularly, especially if your tax withholding appears quite different from your final tax liability.

You should also review and possibly revise your W-4 if your marital status changes, you have or adopt a child, or if your employment situation is altered.

The IRS provides a tax withholding estimator tool to help you adjust your W-4 entries appropriately.

What Information Does a W-2 Provide?

Your employer must send you a W-2 form by the end of January, detailing how much you earned and how much tax was withheld from your paychecks in the previous year. The form also outlines any tips earned and benefits received during that year.

If you worked for multiple employers last year, expect to receive separate W-2 forms from each one.

Remember to include all your W-2 forms when you file your tax return.

What’s the 1040 Tax Form?

The 1040 form is the main document used to complete your individual income tax return. This two-page form helps you record different types of income earned throughout the year, decide whether to take the standard deduction or itemize your deductions, and claim any tax credits you’re eligible for.

By following the form’s instructions, you’ll be able to determine how much tax you owe or if you’re entitled to a refund.

Who Is Responsible for Filling Out Form 5695?

Form 5695 is utilized to claim any residential energy credits for which you might be eligible. For example, if you installed solar panels in 2024, you could use this form to apply for the Residential Clean Energy Credit.

Notably, this form is not intended for businesses.