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

Tax season doesn’t have to be a scramble. Digits helps you stay ahead with up-to-date books, AI-assisted 1099 eligibility, and automated financials—so you can deliver confidently to every client.

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.

Tip: Use the Year selector to switch between current and prior tax years.

What You’ll See in the Taxes View:

Field
Description

Payment Method

Flags vendor payments made via bank accounts (potentially 1099-reportable) vs. credit cards (generally excluded).

Entity Type

Helps determine if a W-9 is required. ✨ Digits auto-detects entity type when possible, but you can adjust based on your knowledge.

W-9 Status

Mark vendors as Required / Not Required / Available / Unknown.

1099 Spend

Calculates total 1099-eligible spend based on payment method, entity type, and annual total.

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.

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.

Store & Track W-9s in Documents

Keep all W-9s organized for year-end in the Documents tab.

1

Upload W-9s to Documents

  1. Go to Documents.

  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.

Tip: ✨Digits auto-recognizes and names common W-9 formats.

2

Filter and find W-9s fast

  1. In Documents, 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.

3

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.

Tip: Request W-9s during onboarding or once a vendor crosses your 1099 threshold—this minimizes year-end cleanup.

Share with the Tax Accountant

You can collaborate in two ways:

  • Invite Colleagues: 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.

Tip: For tax-only or dormant entities, the Ledger-Only plan offers AI-powered ledger access and unlimited accountant seats for light use.

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 Inbox to review only items where the AI needs your confirmation.

  4. Reconcile → Review → Publish → Lock.

Tip: For tax-only or dormant entities, the Ledger-Only plan offers AI-powered ledger access and unlimited accountant seats for light use.

Frequently Asked Questions

Does Digits file 1099s or tax returns?

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

Where do I manage 1099-related info?

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

Can I export my 1099-eligible vendors for filing?

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.

Can I lock the tax year after we file?

Yes. Lock Periods prevent edits once finalized.

What if I can’t connect to a bank?

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

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

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

Need help? Contact us at [email protected]