Tax View in Vendors

Digits automatically keeps your vendors 1099-ready by identifying each vendor, tracking W-9 status and 1099-eligible payments, and calculating each vendor's filing requirement throughout the year.

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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.

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

What You’ll See in the Taxes View:

Summary panel (Insights, left side)

Wdget	What it shows
Total Vendors	Number of vendors with activity in the selected year.
1099 Required Vendors	How your vendors break down by 1099 status for the year — 1099 Required, Not Required, and Unknown.
W-9 Status	How your vendors break down by W-9 state — Required, Not Required, Available, and Unknown.

Columns in the vendor list

Column	What it shows	Editable?
Vendor	Vendor name and logo.	No
Entity Type	The vendor's tax entity type — e.g. Sole Proprietorship, Partnership, LLC, Individual, Corporation, Trust & Estates, Other, or Unknown Entity Type. Drives the 1099 calculation.	Yes
W-9 Status	W9 Required, W9 Not Required, W9 Available, or Unknown W9 Status.	Yes
1099 Status	Automatically calculated — 1099 Required, 1099 Not Required, or Unknown Status.	No
1099 Spend	The vendor's total 1099-qualified spend for the year, plus the qualified amount (e.g. $0.00 · 0 Qualified).	No

To influence a vendor's 1099 Status, update its Entity Type and W-9 Status — those feed the calculation.

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, so you’ll rarely need to revisit them unless a vendor’s status changes.

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How 1099 Qualification Works

You don't mark vendors or transactions as 1099-qualified — ✨ Digits calculates each vendor's 1099 Status automatically, and it's read-only.

It's based on two things:

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

Result	When
1099 Required	Qualified spend ≥ $600 and entity type is Sole Proprietorship, Partnership, LLC, or Individual.
Unknown Status	Qualified spend ≥ $600 but entity type is Unknown, Corporation, Trust & Estates, or Other.
1099 Not Required	Qualified spend is under $600 for the year, or the vendor is a foreign entity.

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.
5. Then, use the dropdown in the W9 status column to select a type.

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Export Tax Data

1. Click the menu in the top-right (next to Add Transaction).

Choose one of the following:

• Download CSV: save a CSV of customer or vendor transactions to your computer.
• Export CSV to Vault: save the CSV to your Vault folder for sharing or future access.

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Frequently Asked Questions

How do I store and track W-9s in Vault?

Upload W-9s to Vault 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.

See: Store and Track W-9s in Vault

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?

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.
5. Then, use the dropdown in the W9 status column to select a type.

Where should I store vendor W-9s?

In Vault. Upload and tag as Document Type = W-9, then set W-9 Status = W-9 Available in Vendors → Taxes.

See: Store and Track W-9s in Vault

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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Got a question or feedback? Our team is all ears—come say hello!

Contact Digits Support

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