Why would a company request a W-9 form for a travel reimbursement under $600?

12 This is a common point of confusion. Companies often have blanket policies requiring W-9s for any payment they make to individuals, even when it's technically just a reimbursement. While not strictly necessary for pure expense reimbursements under $600, many businesses do this as a standard practice for their accounting department. The company is likely being cautious for a few reasons: 1) They want documentation in case they're audited, 2) Their accounting system might flag all payments as requiring tax documentation, or 3) They may be considering the reimbursement as part of a broader relationship where your wife received something of value (the conference invitation itself could be considered a benefit).

18 After reading about your W-9 situation, I wanted to share something that might help. I had a similar issue last year with conference reimbursements and started using taxr.ai (https://taxr.ai) to keep track of all my potential 1099 income versus actual reimbursements. The system automatically categorizes everything and flags potential issues like reimbursements being incorrectly reported as income. I used to struggle with tracking all these random reimbursements until I had the system analyze my documentation. It even generates a letter you can send to vendors who incorrectly issue 1099s for reimbursements explaining why it shouldn't be reported as income. Saved me from having to pay taxes on money that was just passing through my account!

5 Just wanted to update everyone - I tried taxr.ai after posting my question here and it was incredibly helpful! I uploaded the conference invitation email, receipt, and reimbursement request, and it immediately categorized it properly as a non-taxable reimbursement. What I really appreciated was that it explained exactly what language to use with the vendor to make sure they understand why a W-9 might be requested but shouldn't result in a 1099 for pure reimbursements. I'm much more confident now about dealing with this situation, and I've started cataloging all my husband's professional expenses with it just to be safe.

14 I see a lot of good advice here, but if your wife is still having trouble getting the company to process the reimbursement correctly, I'd recommend using Claimyr (https://claimyr.com) to get direct help from the IRS on this issue. I recently had a similar problem where a company insisted on issuing a 1099 for a reimbursement under $600, and I couldn't get a straight answer from their accounting department. I was stuck in endless hold cycles trying to call the IRS directly, but Claimyr got me connected to an actual IRS agent in about 15 minutes instead of the 2+ hours I was facing. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent was able to explain exactly what documentation I needed to prevent the payment from being incorrectly reported as income.

9 I have to admit I was completely wrong about Claimyr! After my skeptical comment, I decided to try it anyway since I had some unrelated tax questions about my hobby income. Got connected to an IRS agent in about 20 minutes (way better than the 3+ hours I'd waited previously and still got disconnected). The agent was super helpful and explained that companies request W-9s for ANY payment as a standard procedure, but confirmed that true expense reimbursements should NOT generate a 1099-MISC or 1099-NEC even if they have your W-9 on file. This is especially true for amounts under $600 that wouldn't trigger a 1099 requirement anyway. Worth the peace of mind to get the official answer!

3 Just a practical tip from someone who deals with this regularly: When your wife fills out the W-9, she could attach a short note stating "This form is being provided solely for a flight expense reimbursement of $485, which is not reportable income." I've found that specifically noting this helps prevent accounting departments from automatically generating a 1099 at year-end.

15 Has anyone had experience with these medical device companies actually issuing 1099s for these types of reimbursements? I'm wondering if they're just collecting W-9s as a procedural thing but don't actually plan to issue any tax forms for small reimbursements.

I work in medical device compliance and can shed some light on why companies do this. Most medical device manufacturers have strict policies requiring W-9s for ANY payment to healthcare professionals, regardless of amount, due to the Physician Payments Sunshine Act reporting requirements. Even though your wife's reimbursement likely won't need to be reported to CMS, the companies often use blanket policies to ensure they capture all necessary tax information upfront. The good news is that legitimate expense reimbursements under $600 should NOT result in a 1099 being issued to your wife. However, I'd recommend she keep detailed records of the conference invitation, receipts, and correspondence just in case the company's accounting department makes an error. If they do mistakenly issue a 1099, having this documentation will make it much easier to request a correction.

As someone who's dealt with similar situations in healthcare consulting, I'd recommend your wife also ask the company upfront whether they plan to issue a 1099 for this reimbursement. Getting their answer in writing (even just an email) can save a lot of headaches later. Most reputable medical device companies understand the distinction between reimbursements and payments for services, but their accounting departments don't always communicate this properly. If they confirm it's just for their records and won't result in a 1099, you'll have peace of mind. If they seem unclear about their own policies, that's a red flag to be extra careful with documentation. Also worth noting - if this is part of a broader consulting or speaking arrangement with the company (even informal), that could change how they classify the payment. But for a simple travel reimbursement to attend a conference they invited her to, it should definitely not be treated as taxable income.

I'm dealing with a similar situation right now with my employer - they're asking for a W-9 for reimbursing my parking expenses at a work conference. It's frustrating because like everyone mentioned, it's clearly just getting my money back, not income. What I've learned from reading all these responses is that it seems to be more about the company's internal processes than actual IRS requirements. The advice about getting written confirmation that they won't issue a 1099 is gold - I'm definitely going to ask for that upfront. Has anyone here actually received an incorrect 1099 for a reimbursement and had to deal with getting it corrected? I'm curious how difficult that process actually is if a company makes that mistake.

I've been following this discussion and wanted to add my perspective as someone who works in corporate accounting. The W-9 request is actually quite standard for any payment to an individual, even reimbursements, because it helps companies maintain consistent vendor records and ensures they have proper tax documentation if needed. What's key to understand is that requesting a W-9 doesn't automatically mean they'll issue a 1099. For legitimate expense reimbursements like your wife's flight, the company should have internal controls to distinguish between reimbursements and taxable payments. However, as others have mentioned, smaller companies or those with less sophisticated accounting systems sometimes make mistakes. My advice: Fill out the W-9 (it's pretty standard), but definitely follow the suggestions others made about getting written confirmation that this won't result in a 1099. Also keep all your documentation - the conference invitation, receipts, and email correspondence. This creates a clear paper trail showing the business purpose and reimbursement nature of the payment, which is exactly what you'd need if any questions arise later. The medical device industry does tend to be extra cautious with healthcare professional payments due to compliance requirements, so this is likely just their standard procedure rather than anything specific to your situation.

I went through something very similar with a pharmaceutical company last year when they reimbursed me for conference travel expenses. They also requested a W-9 for a reimbursement under $600, which initially confused me too. What I learned is that many healthcare-related companies have blanket policies requiring W-9s for ANY payment to healthcare professionals, regardless of the amount or nature of the payment. This is partly due to compliance requirements and partly because their accounting systems are set up to capture all tax information upfront rather than trying to sort it out later. The key thing is that a W-9 request doesn't automatically mean you'll receive a 1099. For true expense reimbursements like your wife's flight, they should NOT issue any tax forms since they're just returning money she spent on their behalf. However, I'd recommend she specifically ask them in writing whether this reimbursement will result in any tax reporting - having that confirmation can save headaches later. Also keep all documentation (conference invitation, receipt, correspondence) just in case their accounting department makes an error. Most reputable companies handle these correctly, but having a paper trail makes any corrections much easier if needed.

I'm a tax preparer who works with several healthcare professionals, and I can confirm this is extremely common in the medical device and pharmaceutical industries. The W-9 request is standard procedure for any payment to healthcare providers due to strict compliance requirements, but it doesn't mean your wife will receive a 1099 for a legitimate expense reimbursement. The key distinction is that she paid for the flight herself and is simply being reimbursed - this is not income. However, I've seen companies occasionally make errors and issue 1099s for reimbursements, so I always recommend my clients do two things: 1) Get written confirmation from the company that the reimbursement won't generate a 1099, and 2) Keep detailed records including the conference invitation, receipts, and all correspondence. If they do mistakenly issue a 1099, you'll need those records to request a correction. The good news is that most reputable medical device companies have proper procedures to distinguish between reimbursements and taxable payments. Just fill out the W-9 (it's really just administrative) but get that written confirmation for peace of mind.

I'm an accountant who works with several medical practices, and I can add some additional context to what others have shared. The W-9 request is indeed standard practice for medical device companies, but there's an important nuance worth mentioning. While everyone is correctly noting that legitimate expense reimbursements shouldn't generate a 1099, the classification can sometimes depend on the broader relationship between your wife and the company. If this is truly a one-time reimbursement for travel to a conference they invited her to attend, it should be straightforward. However, if there's any expectation of her providing feedback, participating in surveys, or any other "services" in exchange for the conference invitation and reimbursement, the company might view this differently. I'd recommend your wife clarify with the company whether they consider this a pure expense reimbursement or if they view the conference attendance as providing some value back to them. Most reputable medical device companies are very clear about this distinction, but getting it in writing protects everyone. The documentation trail others mentioned (invitation, receipts, correspondence) is crucial regardless of how they classify it. The good news is that under $600, even if they did consider it taxable, it wouldn't require a 1099 anyway - but better to get clarity upfront than deal with surprises later.

I'm a CPA who specializes in healthcare professional taxation, and I see this exact scenario frequently. The W-9 request is absolutely standard practice for medical device companies - they're required to collect this information for any payments to healthcare providers due to compliance regulations, regardless of whether it's income or reimbursement. Here's what you need to know: A legitimate expense reimbursement should NOT result in a 1099, even with a W-9 on file. However, I always advise my clients to take two protective steps: 1) Email the company asking for written confirmation that this reimbursement won't generate any tax forms, and 2) Save everything - the conference invitation, flight receipt, their reimbursement request, and all email correspondence. The reason for the extra caution is that some companies have automated systems that flag any payment for potential 1099 issuance. Having that written confirmation and documentation makes it much easier to request corrections if their accounting department makes an error. In 15 years of practice, I've seen maybe a dozen incorrect 1099s for reimbursements, but they're always correctable with proper documentation. Your wife should feel confident filling out the W-9 - it's just administrative paperwork that allows them to process the reimbursement through their vendor system.