> For the complete documentation index, see [llms.txt](https://help.digits.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.digits.com/firms-agentic-general-ledger/get-tax-ready.md).

# Get Tax-Ready with Digits: 1099s, W-9s, & Year-End Prep

***

### Review 1099 Vendors in Digits

You’ll find a **Taxes** section under **Vendors**, where ✨ Digits automatically evaluates 1099 eligibility. You’ll have a clear workspace to manage both **1099** and **W-9** requirements.

**To access the Taxes view:**

1. From the left navigation menu, click **Vendors**.
2. Click **Show tax status** in the top right.

<div align="left"><figure><img src="/spaces/DFOQve38AiXy0BqMKC3C/files/bqWdl2c598qQTUWtpZBI" alt="" width="563"><figcaption></figcaption></figure></div>

{% hint style="info" icon="calendar-days" %}
Use the **Year** selector to switch between current and prior tax years.
{% endhint %}

### What You’ll See in the Taxes View:

#### **Summary panel (Insights, left side)**

<table><thead><tr><th width="225.69036865234375">Wdget</th><th>What it shows</th></tr></thead><tbody><tr><td><strong>Total Vendors</strong></td><td>Number of vendors with activity in the selected year.</td></tr><tr><td><strong>1099 Required Vendors</strong></td><td>How your vendors break down by 1099 status for the year — <strong>1099 Required</strong>, <strong>Not Required</strong>, and <strong>Unknown</strong>.</td></tr><tr><td><strong>W-9 Status</strong></td><td>How your vendors break down by W-9 state — <strong>Required</strong>, <strong>Not Required</strong>, <strong>Available</strong>, and <strong>Unknown</strong>.</td></tr></tbody></table>

#### **Columns in the vendor list**

<table><thead><tr><th>Column</th><th width="477.625732421875">What it shows</th><th>Editable?</th></tr></thead><tbody><tr><td><strong>Vendor</strong></td><td>Vendor name and logo.</td><td>No</td></tr><tr><td><strong>Entity Type</strong></td><td>The vendor's tax entity type — e.g. <em>Sole Proprietorship, Partnership, LLC, Individual, Corporation, Trust &#x26; Estates, Other,</em> or <strong>Unknown Entity Type</strong>. Drives the 1099 calculation.</td><td>Yes</td></tr><tr><td><strong>W-9 Status</strong></td><td><strong>W9 Required</strong>, <strong>W9 Not Required</strong>, <strong>W9 Available</strong>, or <strong>Unknown W9 Status</strong>.</td><td>Yes</td></tr><tr><td><strong>1099 Status</strong></td><td>Automatically calculated — <strong>1099 Required</strong>, <strong>1099 Not Required</strong>, or <strong>Unknown Status</strong>.</td><td>No</td></tr><tr><td><strong>1099 Spend</strong></td><td>The vendor's total 1099-qualified spend for the year, plus the qualified amount (e.g. <em>$0.00 · 0 Qualified</em>).</td><td>No</td></tr></tbody></table>

{% hint style="info" %}
To influence a vendor's 1099 Status, update its **Entity Type** and **W-9 Status** — those feed the calculation.
{% endhint %}

**You can also:**

* **Sort & filter** by spend or W-9 status to focus on high-priority vendors.
* **Switch years** with the year selector to manage prior or current tax years.
* **Edit anytime:** Click **Edit** to update entity type, W-9 status, or other fields inline.

<div align="left"><figure><img src="/spaces/DFOQve38AiXy0BqMKC3C/files/fRMrpDHV5R2VkOp8F2El" alt="" width="563"><figcaption></figcaption></figure></div>

***

### **How 1099 Qualification Works**

You don't mark vendors or transactions as 1099-qualified — :sparkles: Digits calculates each vendor's **1099 Status** automatically, and it's read-only.&#x20;

It's based on two things:

* the vendor's **Entity Type**, and
* whether its **1099-qualified spend reaches $600** for the selected calendar year.

<table data-header-hidden><thead><tr><th width="202.60089111328125"></th><th></th></tr></thead><tbody><tr><td>Result</td><td>When</td></tr><tr><td><strong>1099 Required</strong></td><td>Qualified spend ≥ $600 <strong>and</strong> entity type is Sole Proprietorship, Partnership, LLC, or Individual.</td></tr><tr><td><strong>Unknown Status</strong></td><td>Qualified spend ≥ $600 <strong>but</strong> entity type is Unknown, Corporation, Trust &#x26; Estates, or Other.</td></tr><tr><td><strong>1099 Not Required</strong></td><td>Qualified spend is under $600 for the year, or the vendor is a foreign entity.</td></tr></tbody></table>

**How to update the entity type and W9 status:**

1. From the left navigation menu, click **Vendors**.
2. Check **Show tax status** in the top-right of the header.
3. Click **Edit** to enter edit mode.
4. Use the dropdown in the entity type column to select a type.&#x20;
5. Then, use the dropdown in the W9 status column to select a type.&#x20;

<div align="left"><figure><img src="/spaces/DFOQve38AiXy0BqMKC3C/files/GhfrnP0T4uaSumuuKqNz" alt="" width="563"><figcaption></figcaption></figure></div>

### Store & Track W-9s in Vault

{% stepper %}
{% step %}

### Upload W9s to Vault

1. Go to **Vault.**
2. Click **Upload Document** (top right) and select the W9 file.
3. Click **Open**.

{% hint style="info" %}
**Tip:** :sparkles:Digits auto-recognizes and names common W9 formats.
{% endhint %}
{% endstep %}

{% step %}

### Filter and find W9s fast

1. In **Vault**, open **Filters**.
2. Set **Document Type = W9** (or **1099**) to list just the forms you need.
3. Use **Search** (vendor name) or **Sort** (newest first) to narrow results.
   {% endstep %}

{% step %}

### Reflect W9 Status in Vendors → Taxes

1. Open **Vendors** → **Show tax status**.
2. Find the vendor and set **W9 Status = W9 Required, W9 Not Required, W9 Available,** or **W9 Status Unavailable**.
3. (If needed) Update **Entity Type** and mark **1099-qualified** transactions.

{% hint style="info" icon="lightbulb" %}
Note: Eligibility for 1099s is based on **Entity Type** and total **1099-qualified spend**.
{% endhint %}
{% endstep %}
{% endstepper %}

{% hint style="info" %}
**Tip:** Request W-9s during onboarding or once a vendor crosses your 1099 threshold—this minimizes year-end cleanup.
{% endhint %}

***

### Share with the Tax Accountant

You can collaborate in two ways:

* [Invite a Client to their Digits Account](/client-management/roles-and-permissions.md) Add your accountant as a no-cost user to view exports and documents directly.
* **Publish a Year-End Report:** Export or send a **PDF/web report** if they don’t need live access.

#### Need everything in Excel?

Go to **Accounting → Ledger → Download Financial Package**.\
Digits exports one Excel file for each report:

* Ledger
* Trial Balance
* Profit & Loss
* Balance Sheet
* Cash Flow Statement
* AR Aging
* AP Aging

***

### Need to Catch Up a Full Year—Fast?

If you’re behind on the books, you can still get tax-ready quickly:

1. **Connect what you can** (banks, payroll, payments). ✨ Digits begins categorizing instantly.
2. **Bulk import the rest** from CSV.
3. Use **Checklist** to review only items where the AI needs your confirmation.
4. **Reconcile → Review → Publish → Lock.**

{% hint style="info" %}
**Tip:** For tax-only or dormant entities, the [**Ledger-Only plan**](broken://spaces/pyLperOhPbBZSBCoAnGW/pages/SJAXIuoDFiU8dgXSh0UM) offers AI-powered ledger access and unlimited accountant seats for light use.
{% endhint %}

***

### **Frequently Asked Questions**

<details>

<summary>Does Digits file 1099s or tax returns?</summary>

No. Digits provides the **Taxes** workspace to evaluate eligibility and track W-9s. Use your preferred filing solution or CPA to file forms.

</details>

<details>

<summary>Where do I manage 1099-related info?</summary>

Go to **Vendors → Taxes** to review AI-assisted eligibility (bank vs. card payments, entity type) and mark W-9 requirements. Use **Vault** to store and auto-name W-9s for quick filtering at year-end.

</details>

<details>

<summary>Can I export my 1099-eligible vendors for filing?</summary>

Yes. Open **Vendors → Taxes**, apply filters (year, eligibility), then click **Export** to download a CSV of 1099-eligible vendors and totals. Upload it to your e-file tool or share it with your CPA.

</details>

<details>

<summary>Can I lock the tax year after we file?</summary>

Yes. **Lock Periods** prevent edits once finalized.

</details>

<details>

<summary>What if I can’t connect to a bank?</summary>

Bulk import CSVs into **Ledger**, or upload bank statements (PDFs) to **Vault** to auto-convert them into CSVs for import.

</details>

<details>

<summary>What if I don’t have a CSV file for a client’s bank transactions?</summary>

No problem—upload the statement PDF to **Vault,** click the menu in the top-right corner, and choose **Export as CSV** to import directly into the Ledger.

</details>

***

{% columns %}
{% column width="66.66666666666666%" valign="middle" %}
Got a question or feedback? Our team is all ears—come say hello!
{% endcolumn %}

{% column width="33.33333333333334%" valign="middle" %}

<p align="center"><a href="https://portal.usepylon.com/digits/forms/get-in-touch-with-digits-support" class="button primary" data-icon="envelope-open-text">Contact Digits Support</a></p>
{% endcolumn %}
{% endcolumns %}

***


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://help.digits.com/firms-agentic-general-ledger/get-tax-ready.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.