Simple answer: because that's the way English works.

I am     -> I'm      ||  I have     -> I've
You are  -> You're   ||  You have   -> You've
He is    -> He's     ||  He has     -> He's
She is   -> She's    ||  She has    -> She's
It is    -> It's     ||  It has     -> It's
We are   -> We're    ||  We have    -> We've
They are -> They're  ||  They have  -> They've

There is a certain amount of ambiguitity here, but the precise meaning can usually be determined by context. You'll notice that the same ambiguity exists with he and it is/has.

Furthermore, it's (it is / it has) can also be confused with the possessive its (note no apostrophe)!

There are no contractions (that I'm aware of) for was (the past tense). She was is always She was, but She had can be contracted to She'd.

Answer from Mike Harris on Stack Exchange
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Grammarly
grammarly.com › blog › grammar › contractions
What Are Contractions in Writing? Definition and Examples | Grammarly
August 10, 2022 - Contractions are a kind of abbreviation that combines two or more words by removing certain letters and usually adding an apostrophe. Only certain words can be contracted: typically small and common words (not, is/are), especially pronouns (I, he/she/it, they), and modal verbs (can, will, might, must, should, would, could).
People also ask

What is the difference between an abbreviation and a contraction?
Abbreviations and contractions are both used to shorten a word, but in different ways. · An abbreviation is formed using the initial letters (or sometimes other parts) of a longer word or phrase to represent the whole. Common examples include “Mr.” for “Mister,” “Dr.” for “Doctor,” and “NASA” for “National Aeronautics and Space Administration.” They are used in formal writing as well as everyday conversations. · A contraction, on the other hand, is formed by combining two words and omitting one or more letters. The deleted letters are replaced with an apostrophe (e.g., “cannot” becomes “can’t”
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scribbr.com
scribbr.com › home › contractions (grammar) | definition & examples
Contractions (Grammar) | Definition & Examples
What are contractions (words)?
Contractions are short words that are made by combining two words. This is often done by deleting certain letters and replacing them with an apostrophe (e.g., “do not” becomes “don’t”). · Although contractions are common in everyday speech, they should generally be avoided in formal or academic writing. However, there are exceptions (e.g., when writing dialogue in a story or directly quoting an author who uses contractions in your paper). · A good rule of thumb is to consider your audience and the intended effect of your writing when deciding whether to use contractions.
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scribbr.com
scribbr.com › home › contractions (grammar) | definition & examples
Contractions (Grammar) | Definition & Examples
What is the difference between a contraction and a portmanteau?
Contractions and portmanteaus are similar in that they are both formed by combining two words and omitting some letters. However, there is a difference between them: · Contractions usually combine two words that are often used together (e.g., “do not” becomes “don’t”). A contraction has the same meaning as its uncontracted form. · A portmanteau is formed by blending two words together to create a new word with a different meaning. For example, “brunch” is a combination of “breakfast” and “lunch.” This is also called a neologism.
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scribbr.com
scribbr.com › home › contractions (grammar) | definition & examples
Contractions (Grammar) | Definition & Examples
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San Jose State University
sjsu.edu › writingcenter › docs › handouts › Contractions.pdf pdf
San José State University Writing Center www.sjsu.edu/writingcenter
she’s  she is; she has · you’re  you are · shouldn’t  should not · you’ve  you have · that’s  that is; that has · One contraction that is not on the above list is “it’s.” It is useful to note that “it’s,” a contraction, is often confused with “its,” ...
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Cambridge Dictionary
dictionary.cambridge.org › us › grammar › british-grammar › contractions
Contractions - English Grammar Today - Cambridge Dictionary
The following are the most common contractions. ... She is not is contracted to she isn’t or she’s not. I am not is only contracted to I’m not. Not: I’m n’t or I am n’t. They are not is contracted to they aren’t or they’re not. The isn’t / aren’t contractions are more common after nouns.

Simple answer: because that's the way English works.

I am     -> I'm      ||  I have     -> I've
You are  -> You're   ||  You have   -> You've
He is    -> He's     ||  He has     -> He's
She is   -> She's    ||  She has    -> She's
It is    -> It's     ||  It has     -> It's
We are   -> We're    ||  We have    -> We've
They are -> They're  ||  They have  -> They've

There is a certain amount of ambiguitity here, but the precise meaning can usually be determined by context. You'll notice that the same ambiguity exists with he and it is/has.

Furthermore, it's (it is / it has) can also be confused with the possessive its (note no apostrophe)!

There are no contractions (that I'm aware of) for was (the past tense). She was is always She was, but She had can be contracted to She'd.

Answer from Mike Harris on Stack Exchange
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Scribbr
scribbr.com › home › contractions (grammar) | definition & examples
Contractions (Grammar) | Definition & Examples
May 2, 2025 - She specializes in writing about research methods and research bias. ... Ads help us keep our tools free for everyone. Scribbr customers enjoy an ad-free experience! An apostrophe followed by an "s" may indicate possession (e.g., "Dave's house") or contraction (e.g., "Dave's here" = "Dave is here").
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Wikipedia
en.wikipedia.org › wiki › Contraction_(grammar)
Contraction (grammar) - Wikipedia
3 weeks ago - In general, any monosyllabic word ending in e caduc (schwa) contracts if the following word begins with a vowel, h or y (as h is silent and absorbed by the sound of the succeeding vowel; y sounds like i). In addition to ce → c'- (demonstrative pronoun "that"), these words are que → qu'- (conjunction, relative pronoun, or interrogative pronoun "that"), ne → n'- ("not"), se → s'- ("himself", "herself", "itself", "oneself" before a verb), je → j'- ("I"), me → m'- ("me" before a verb), te → t'- (informal singular "you" before a verb), le or la → l'- ("the"; or "he", "she", "it" before a verb or after an imperative verb and before the word y or en), and de → d'- ("of"). Unlike with English contractions, however, those contractions are mandatory: one would never say (or write) *ce est or *que elle.
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BoldVoice
boldvoice.com › blog › contractions-in-english
35 Essential Contractions in English | BoldVoice
This word is also a pronoun-verb contraction that serves two purposes, depending on the context. ... It can be used as "he is," referring to a state, description, or condition of a male subject. ... It could also be used as "he has" and combined with past participles to indicate actions that have been completed. Here’s how you can use “he’s” in both contexts: ... Just like “he is,” this word expresses either the female subject’s state (she is) or an action they completed in the past (she has).
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The Editor’s Manual
editorsmanual.com › articles › usage › contractions
Contractions in English Grammar | The Editor’s Manual
December 4, 2024 - She’d often stop by on her way to work. (she would) Similarly, the contracted form ’s can represent both is and has.
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Enchanted Learning
enchantedlearning.com › grammar › contractions › index.shtml
Contractions - Enchanted Learning
March 9, 2006 - A multiple choice comprehension printable quiz about Contractions for early readers. Words: I’ll, we’re, you’d, don’t, isn’t, it’s, you’re, she’d, they’re, won’t.
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University of Sussex
sussex.ac.uk › informatics › punctuation › apostrophe › contractions
Contractions : The Apostrophe
But I advise you not to use the more colloquial contractions like she'd've in your formal writing: these things, while perfectly normal in speech, are a little too informal for careful writing. Such contractions represent the most useful job the apostrophe does for us, since, without it, we would have no way of expressing in writing the difference between she'll and shell, he'll and hell, can't and cant, I'll and ill, we're and were, she'd and shed, we'll and well, and perhaps a few others.
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Langeek
langeek.co › home › grammar › punctuation and spelling › contractions
"Contractions" in English Grammar | LanGeek
2 weeks ago - If the contractions are confusing, it's better to avoid them. For example: "she'd" can be both "she had" and "she would", so if the context of the sentence cannot clarify which meaning is intended, it's best to avoid using it.
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Espresso English
espressoenglish.net › home › english tips blog › 50+ contractions in english: list & examples
50+ Contractions in English: List & Examples - Espresso English
July 16, 2024 - She’s been planning her vacation. (She has been) Note: ‘s can also be used in possessive nouns (John’s kids, Mary’s car). We use contractions with had in the past perfect tense, as in these examples:
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LanguageTool
languagetool.org › home › contractions: what they are and how to form them
Contractions: What They Are and How To Form Them
July 29, 2025 - It has eight different forms, but only the present simple tense forms—is, am, and are—get contracted. Is is used for third-person singular subjects. It’s contracted by replacing the “i” with an apostrophe. She called to inform us that she’s going to be late.
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Preply
preply.com › preply language learning hub › learn english online › english writing › contractions in english: how to use them confidently when speaking and writing english
Contractions in English: Correct Use in Speaking & Writing
September 18, 2025 - Contractions in English are formed in specific ways, which means you can’t just put any two words together. Usually, they include one or more of the following: Pronoun (e.g., “I”/“he”/“she”/“it”/“they”)
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Wikihow
wikihow.com › education and communications › studying › english › english grammar › how to use contractions: 12 steps (with pictures) - wikihow
How to Use Contractions: 12 Steps (with Pictures) - wikiHow
August 14, 2025 - If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow ... A contraction consists of two words shortened (contracted) into one word. It reflects the way people often speak. "Do not" becomes "don't." "Will not" becomes "won't." "I am" becomes "I'm." "You are" becomes "you're." "She is" becomes "she's."
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EnglishClub
englishclub.com › vocabulary › contractions-positive.php
Positive Contractions | Learn English
I will/ I shall I'd ... I would/ I should/ I had you're ... you are you've ... you have you'll ... you will you'd ... you had/ you would he's ... he has/ he is he'll ... he will he'd ... he had/ he would she's ... she has/ she is she'll ... she will she'd ... she had, she would it's ... it ...
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Proofed
proofed.com › home › a guide to contractions in english grammar
A Guide to Contractions in English Grammar | Proofed's Writing Tips
February 2, 2023 - The missing letters are replaced with an apostrophe to indicate that a contraction has been formed. Contractions are used readily in everyday speech, so adding them to your writing creates a more conversational and natural tone. They also sound more informal and casual. Let’s look at some different types of contractions and how you can use them. The most common type of contraction is the combination of a subject pronoun (e.g., I, she, they) and a verb (e.g., have, are, is).
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WordReference
forum.wordreference.com › english only › english only
She's [contraction 'she is' vs 'she was'] | WordReference Forums
November 29, 2016 - Click to expand... Of course it has a source! Even if the source was you. Sentences don't just float around in space. ... She's can also been a contraction of she has. She's been admitted to Standford University. However, I've never seen it used for she was.
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GCFGlobal
edu.gcfglobal.org › en › grammar › contractions › 1
Grammar: Contractions
Words like can't (can + not), don't (do + not), and I've (I + have) are all contractions.