what is a w9 tax form

You will certify, under penalties of perjury, the four items listed on Form W-9. If you are subject to backup withholding because the IRS let you know what is a w9 tax form you didn’t report all interest or dividends on your tax return, cross out item 2. Again, keep your safety in mind when completing and sending a W-9.

what is a w9 tax form

Check out this information on Form W-9 for businesses. In the post, you’ll find information about requesting W-9s for business vendors and contractors.

Can I Refuse To Fill Out The W9 Form?

The following information is required on a W9 form. Refer to the General Instructions following the form. On the right, you will find a field called «Requester’s name and address». This is optional, but it could be a good idea to keep track of who you’re sending this Form W-9 to. Keep in mind this form is only used if you are not hired as an employee. If you are an employee, you fill in Form W-4 instead.

  • Failure to provide your Social Security Number or EIN may result in the delay of future payments or backup withholdings.
  • The 1099-S or 1099-B forms are due by February 15.
  • Box 7, which says “List account number here ,” can generally be left blank, unless the person requesting your W-9 directly asks you to enter bank account information on your form.
  • The title of Form W-9 is officially Request for Taxpayer Identification Number and Certification.
  • Form W-9 is most commonly used in a business–contractor arrangement.
  • Not only must you collect the TIN, but you must also demonstrate that you are keeping the data private.

These are the steps to correctly complete a Form W-9. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. This is a legal document, so it’s important to read and follow all instructions carefully.


The goals of the W-8 forms are to help the IRS keep track of how much income is being sent to individuals and entities overseas, as well as to determine the correct tax withholding rate. To make things even more fun, there are five different W-8 forms, each of which can be used to manage tax requirements for entities that declare a foreign tax ID status. Foreign freelancers don’t need to fill out all five forms, however. They need to determine the right form based on their type of business and purpose. Write in your nine-digit Social Security number or employer identification number, placing one digit in each box. You can easily apply for an EIN on the IRS website. Let’s say Anna is a freelance graphic designer.

They do not receive health insurance, 401 matching, and other benefits from employers. Boxes 8-14 do not apply to most businesses. The IRS provides a document detailing therare instances when they applyand how to fill them out if needed.

what is a w9 tax form

In order to accurately prepare these forms, the IRS requires that we obtain and maintain form W-9 for all of our vendors. We ask that you complete and submit the online Substitute Form W-9. The information return must disclose the vendor’s taxpayer identification number. Failure to provide your Social Security Number or EIN may result in the delay of future payments or backup withholdings. Neither the business nor the contractor ever actually sends a W-9 to the Internal Revenue Service. It’s just a way for businesses to collect information that they’ll use to fill out a different form at the end of the tax year. Without knowing the identifying details in a W-9, a business may not be able to accurately report a contractor’s earnings to the IRS.

When Working With Independent Contractors, Employers Need To Be Familiar With Two Tax

It is issued to confirm a person’s name, living details like their address, and crucially, the Taxpayer Identification Number . Form W-9 is not subject to IRS deadlines, since the IRS does not collect this form. However, since employers must file Form 1099 by Jan. 31, independent contractors who do not provide a W-9 upon starting work with a new client should file the form with their clients as soon as possible. Business owners can also request Form W-9 from contractors as needed between the end of the year and the 1099 filing deadline. W-9s and 1099s are tax forms that businesses need when working with independent contractors. In case you have a newly-established business entity and still don’t have the Employer Identification Number, the IRS suggests you apply for it as soon as possible and state «Applied for».

A common disregarded entity type is a single-memberlimited liability company. Any required taxes based on gains related to the provided W-9 are the responsibility of the TIN holder listed on the document unless the taxpayer is subject to backup withholding. If backup withholding is required, this will need to be noted on the W-9, to properly inform the entity receiving the information of the need to withhold accordingly. Another tip when receiving W-9 forms is to review them as you receive them. Be sure all the required boxes are completed appropriately and that the taxpayer has signed the form. This will be key if the IRS contacts you regarding incorrect information.

Who Fills Out A W9 Form?

In addition to an employee’s personal information, the W-4 asks about how much the individual wants to have withheld from paychecks based on tax allowances. Independent contractors don’t have taxes withheld from paychecks, so if you fill out a W-9, you may owe federal and state income taxes at the end of the year or estimated taxes throughout the year. How much you owe, if anything, depends on your other sources of income, how much you make, and other factors.

Use a secure method of delivery, like hand delivery, mail or encrypted file attachment. You want to make sure you’re not accidentally sending your personal information to the wrong people. If you must email the form, you should encrypt both the document and your email message and triple-check that you have the recipient’s correct email address before sending your message.

Included With All Paid Plans

W-9 forms are for independent contractors, also called freelancers. It’s important to fill out the form correctly—but only if you’re sure it’s the right form to submit and the request is legit. Employers shouldn’t https://www.bookstime.com/ ask you for a W-9 either. Only available for returns not prepared by H&R Block. All tax situations are different and not everyone gets a refund. Fees apply if you have us file an amended return.

Building an international team can be time-consuming, especially when compliance is involved. There are different local labor laws and tax regulations for each country you hire from. You know the penalties may be devastating, but it’s still overwhelming to have to learn about all these new rules. This one applies to you if you are filing the Form W-9 outside the United States. Check out the IRS’s guide to international business entities for more information. This applies to you if you’re doing business but don’t have a business partner (you’re acting as an individual) and in case you haven’t incorporated your business.

Starting price for state returns will vary by state filed and complexity. At the end of the tax year, the information contained on the completed Form W-9 gets used to prepare 1099 forms like 1099-NEC, 1099-MISC, 1099-INT, and 1099-DIV. Making sure that Form W-9 is completed accurately can save a lot of trouble come tax time. When you begin working with a contractor or freelancer, you should request that he or she complete a Form W-9 prior to starting any engagement. Failing to do so could prove troublesome after beginning the work. Optional information can also be included on the form, including the name of the person or company requesting its completion. Now that we know what a W9 tax form is, here are all the other necessary details that you need.

If you behave like a corporation at the state level but are taxed like a partnership or sole proprietorship at the federal level, you’re likely an LLC! Since an LLC is what’s called a “disregarded entity,” they can be taxed as a C corp, S corp, or partnership.

what is a w9 tax form

Exemptions only apply to entities, not individuals, and most freelancers will leave these boxes blank. The W-9 form provides codes that you can use to indicate if your business is exempt from backup withholding or from reporting on accounts held at financial institutions abroad.

New customers need to sign up, get approved, and link their bank account. The cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire.

Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years of experience researching personal finance topics. Specialties include general financial planning, career development, lending, retirement, tax preparation, and credit. In addition to Investopedia, she has written for Forbes Advisor, The Motley Fool, Credible, and Insider and is the managing editor of an economics journal. She is a graduate of Washington University in St. Louis. The form is never actually sent to the IRS; it is maintained by the individual who files the information return for verification purposes. The information on the Form W-9 and the payment made are reported on a Form 1099.

It is important to note that the US has different tax treaties with different countries around the world, which means withholding amounts differ for freelancers depending on what country they reside in. Form W-9 is only used to gather the necessary information. Neither you, the business, nor your contractors, should actually submit the W-9 to the IRS. On the other hand, failing to fill out or submit the correct forms—whether by accident or intentionally—can cause major headaches or lead to tax penalties down the road. Most likely, the business you are working with will request that you fill out a W-9 form as soon as they retain you or when you invoice. The company you are doing business with should provide you with a W-9.

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