If you’re currently working as a therapist in a contract role, you should make yourself familiar with Form W-9 and Form 1099.
What’s a W-9 for therapists?
A W-9 is a single page form submitted to the IRS, also titled and known as a “Request for Taxpayer Information and Certification.” As a therapist, you are required to fill out a W-9 if you are a non-employee doing more than $600 of work for a business in a given year. It is a form for individuals only.
For example, if you’re a practice owner who is contracting other therapists for your business, you will need to request a completed W-9 from each contractor you hire.
What’s a 1099 for therapists?
A Form 1099 often works in tandem with the W-9.
A Form 1099 is known as an "information filing" form. They’re usually distributed by the end of January in any given tax year.
You'll typically receive a Form 1099-NEC in the mail if you received payment working as an independent contractor. (Other types of Form 1099 are used to report other types of income—from investments, for instance.)
The forms are sent to you so you know how much money to report, but do not need to be attached to your return. Copies of the form are sent to the IRS by the issuer, so your statement can be double-checked.
Looking through these forms ahead of tax season can be enormously beneficial and alleviate some of the stress that comes with filing taxes as a self-employed therapist.
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult their own attorney, business advisor, or tax advisor with respect to matters referenced in this post.