What Happens After You Submit a W-9?
Once you submit a W-9, what comes next? Here's what to expect: 1099 forms, backup withholding, and your own tax responsibilities as a freelancer or contractor.
- The W-9 stays with the business and is never filed with the IRS.
- If you're paid $600 or more by a client, you'll receive a 1099-NEC by January 31.
- Contractors must pay quarterly estimated taxes, due April 15, June 15, Sept 15, and Jan 15.
- Even if a client doesn't send a 1099 (under $600), you're still required to report that income.
You’ve filled out your W-9 and handed it to your client or platform. Now what? Here’s what to expect after submitting a W-9, including what it means for your taxes.
The business keeps it on file
The person or business you submitted a W-9 to doesn’t send it anywhere. They keep it on file so they have your taxpayer information when they need to report what they’ve paid you. The IRS requires businesses to retain W-9s for four years.
You generally won’t receive a confirmation that they received it. If you’re working with a client, it’s fine to send a quick email saying “attached is my completed W-9” and ask them to confirm receipt.
You’ll receive a 1099 at year-end (if applicable)
If the business or person paid you $600 or more during the calendar year, they’re required to:
- Send you Form 1099-NEC (Nonemployee Compensation) by January 31 of the following year.
- File a copy with the IRS.
The 1099-NEC shows how much they paid you. You use this to verify your income when filing your tax return. Even if you receive a 1099, you should already have your own records of your income. Don’t rely on clients to track it for you.
If you earn less than $600 from a client: They’re not required to send you a 1099, but you’re still required to report that income on your tax return. The $600 threshold is the payer’s reporting obligation, not yours.
You’re responsible for paying your own taxes
Unlike employees who have taxes withheld from every paycheck, freelancers and contractors receive payments in full. That means:
- No federal income tax is withheld from what your clients pay you.
- You owe self-employment tax (15.3% of net self-employment income, covering Social Security and Medicare).
- You may need to make quarterly estimated payments to avoid underpayment penalties.
Quarterly estimated taxes
If you expect to owe $1,000 or more in federal taxes for the year (which is common once you’re earning decent contractor income), the IRS expects you to pay quarterly estimated taxes. The due dates are:
| Quarter | Due date |
|---|---|
| January–March | April 15 |
| April–May | June 15 |
| June–August | September 15 |
| September–December | January 15 (following year) |
Missing these payments doesn’t automatically mean penalties. But if you underpay significantly throughout the year, you may owe an underpayment penalty when you file your return.
What is backup withholding?
Backup withholding is when a payer withholds 24% of payments and sends it directly to the IRS, rather than paying you the full amount. This happens when:
- You don’t provide a W-9 (or provide an incorrect TIN).
- The IRS notifies the payer that you’re subject to backup withholding (usually due to underreporting income in a prior year).
By filling out and certifying your W-9 correctly, you certify that you’re not subject to backup withholding. That means your clients pay you the full amount and you handle taxes yourself.
What to keep track of
Once you start working as a contractor or freelancer, staying organized through the year makes tax time much easier:
- Track all income as you earn it, not just when 1099s arrive.
- Save receipts for deductible business expenses: home office, equipment, software, professional fees, mileage, and more.
- Set aside money for taxes as income comes in. A common rule of thumb is 25–30% of net income, though the right amount depends on your total income, deductions, and state taxes.
- Keep a copy of every W-9 you submit for your records.
How long should you keep your W-9 records?
Keep copies of W-9s you’ve submitted, along with records of what you were paid and by whom, for at least three to seven years. The IRS can generally audit up to three years of returns, or up to six years if income was significantly underreported.
Questions about what you owe?
Understanding self-employment taxes, estimated payments, and deductions can save you real money. A free consultation with a tax professional can walk you through what to expect based on your specific situation.
Need to fill out a W-9 first? Complete yours now using W9 Helper →