Tax View in Vendors
Use the Tax view in Vendors to review 1099 eligibility, track W-9 status, update Entity Type, and mark 1099-qualified transactions. Filter by year, spend, or status, and export a clean vendor list.
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:
From the left navigation menu, click Vendors.
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:
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.
Tip: Confirm entity types during client onboarding—you’ll rarely need to revisit them unless a vendor’s status changes.
Manually Qualify 1099s (per Vendor)
Go to Vendors → Taxes → Edit.
Click a vendor name to open that vendor’s transactions.
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.
Export Tax Data
Click the menu in the top-right (next to New Transaction).
Choose one of the following:
Download CSV — save a CSV of customer transactions to your computer.
Export CSV to Documents — save the CSV to your Documents folder for sharing or future access.
Frequently Asked Questions
How do I store and track W-9s in Documents?
Upload W-9s to Documents as you receive them, then filter with Document Type = W-9 (or 1099) to see what’s on file. In Vendors → Taxes, set W-9 Status = W-9 Available for vendors with a W-9 stored.
How is 1099 eligibility determined?
By the vendor’s Entity Type plus their total 1099-qualified spend for the selected year.
How do I know if a vendor needs a 1099?
Open Vendors → Taxes. The 1099 required flag is based on Entity Type and 1099-qualified spend.
Can I update the Entity Type and W-9 status in Vendors?
Yes. Click Edit in Taxes to update Entity Type and W-9 status inline.
Where should I store vendor W-9s?
In Documents. Upload and tag as Document Type = W-9, then set W-9 Status = W-9 Available in Vendors → Taxes.
Why is a vendor missing from the 1099-required list?
Check the Year selector, verify Entity Type, and confirm their transactions are marked 1099-qualified within the selected year.
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