# 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 **Taxes** in the top left.

<div align="left"><figure><img src="broken-reference" 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:

<table><thead><tr><th width="186.67047119140625">Field</th><th>Description</th></tr></thead><tbody><tr><td><strong>Payment Method</strong></td><td>Flags vendor payments made via bank accounts (potentially 1099-reportable) vs. credit cards (generally excluded).</td></tr><tr><td><strong>Entity Type</strong></td><td>Helps determine if a W-9 is required. ✨ Digits auto-detects entity type when possible, but you can adjust based on your knowledge.</td></tr><tr><td><strong>W-9 Status</strong></td><td>Mark vendors as Required / Not Required / Available / Unknown.</td></tr><tr><td><strong>1099 Spend</strong></td><td>Calculates total 1099-eligible spend based on payment method, entity type, and annual total.</td></tr></tbody></table>

**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="broken-reference" alt="" width="563"><figcaption></figcaption></figure></div>

***

### **Manually Qualify 1099s (per Vendor)**

1. Go to **Vendors → Taxes → Edit**.
2. Click a **vendor name** to open that vendor’s transactions.
3. In the **1099 Qualification** column, choose **Qualified** or **Not Required** for a single transaction, or select multiple to bulk-update.

Changes automatically roll up to the vendor’s **1099 Spend total** for the selected year.

<div align="left"><figure><img src="https://931519193-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FuIztBwoMl2RW5oGzS0cZ%2Fuploads%2Fnp3aPJLUdU21gEW1lpkQ%2Fimage.png?alt=media&#x26;token=8df42b7b-1294-4583-a5f9-1f8b732fd75e" alt="" width="563"><figcaption></figcaption></figure></div>

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

{% stepper %}
{% step %}

### Upload W-9s to Vault

1. Go to **Vault.**
2. Click **Upload Document** (top right) and select the W-9 file.
3. (Optional) Add a description or tags that match your naming conventions.
4. Click **Save**.

{% hint style="info" %}
**Tip:** :sparkles:Digits auto-recognizes and names common W-9 formats.
{% endhint %}
{% endstep %}

{% step %}

### Filter and find W-9s fast

1. In **Vault**, open **Filters**.
2. Set **Document Type = W-9** (or **1099**) to list just the forms you need.
3. Use **Search** (vendor name) or **Sort** (newest first) to narrow results.
   {% endstep %}

{% step %}

### Reflect W-9 Status in Vendors → Taxes

1. Open **Vendors** → **Taxes**.
2. Find the vendor and set **W-9 Status = W-9 Available**.
3. (If needed) Update **Entity Type** and mark **1099-qualified** transactions.\
   Note: Eligibility for 1099s is based on **Entity Type** and total **1099-qualified spend**.
   {% 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:

* [Team Member (Client) Roles & Permissions](https://app.gitbook.com/s/vSRL2TlhlioIo7LGLhmQ/roles-and-permissions "mention") 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

All in a single click.

{% hint style="info" %}
**Tip:** For tax-only or dormant entities, the [**Tax Only (Firm Plan)**](https://app.gitbook.com/s/pyLperOhPbBZSBCoAnGW/ledger-only) offers AI-powered ledger access and unlimited accountant seats for light use.
{% endhint %}

***

### 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**](https://app.gitbook.com/s/pyLperOhPbBZSBCoAnGW/ledger-only) 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://app.gitbook.com/s/x8QKZsFt122QPdcslRDC/contact-us" class="button primary" data-icon="envelope-open-text">Contact Digits Support</a></p>
{% endcolumn %}
{% endcolumns %}

***


---

# Agent Instructions: 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:

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

The question should be specific, self-contained, and written in natural language.
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.