W-9 and 1099 tax basics every U.S. freelancer should know

If you earn more than $600 from a client in a year, the IRS expects you to handle your taxes correctly. The good news: for freelancers, it's straightforward once you know the basics.

If you earn more than $600 from a client in a year, the IRS expects you to handle your taxes correctly. The good news: for freelancers, it's straightforward once you know the basics.

You're a business, not an employee

As a freelancer on zayase you're an independent contractor. No taxes are withheld from your pay. That means you're responsible for setting aside money for income tax and self-employment tax (the freelancer version of Social Security and Medicare).

The W-9

Before you get paid, you'll complete a W-9 with your legal name and Taxpayer Identification Number (SSN or EIN). zayase collects this as part of tax compliance so your payouts aren't held up. Keep your W-9 information accurate — mismatches with IRS records cause delays.

Estimated taxes

Because nothing is withheld, you'll likely pay quarterly estimated taxes to the IRS (April, June, September, January). A safe approach: set aside 25–30% of every payment into a separate account so the money's there when the quarter closes.

The 1099-NEC

Clients who pay you $600+ in a year may issue a 1099-NEC. Even if you don't receive one, you're still required to report all income. Track every payment yourself — don't rely on forms arriving.

Keep clean records

Separate business income and expenses in their own account. Track mileage, software subscriptions, home office, and equipment — these reduce your taxable income.

Complete your W-9 in the Tax Compliance section of your zayase dashboard to unlock payouts.