Jeffrey Wade
A W-9 form is an official Internal Revenue Service (IRS) form used to confirm a person's name, address, and taxpayer identification number (TIN) for employment or other income-generating purposes. The information taken from a W-9 form is often used to generate a 1099 tax form, which is required for income tax filing purposes. Independent contractors who work with companies they are not employed by must often provide that company with a W-9 form.
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What You'll Learn
Who can file a W-9 form?
A W-9 form is completed by an independent contractor, freelancer, or consultant for a business and provided to that business for their records. It is also used by persons required to file information returns with the IRS to get the payee's (or other person's) correct name and TIN. A payee is anyone required to provide a taxpayer identification number (TIN) to the requester. A payee is the holder of the account except if there is a QI, or a foreign person acting as an agent or intermediary for a payment.
The W-9 form can be called a Request for Taxpayer Identification Number and Certification form, but the abbreviation is more typically used. Under privacy laws, information collected in a W-9 form cannot be disclosed for any purpose other than contractor work. The contract worker can sign a W-9 with an electronic signature and send it back to the employer digitally.
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How to fill out a W-9 form
A W-9 form is an official Internal Revenue Service (IRS) form used to verify the name, address and tax identification number of an individual receiving income. It is used by self-employed workers like freelancers, independent contractors and consultants. It is also used by those who are not employed by the company they are working with.
- The payee's name. This should be the payee's full legal name and should match the name on the payee's income tax return.
- Business name (if different from the payee's name). For a business, this name must match the name entered on the legal entity formation documents unless it is an individual/sole proprietorship or single-member LLC (also known as a "disregarded entity" by the IRS).
- You will also need to provide your address and tax ID number.
- If you complete work for multiple companies within a year, you will have to fill out multiple W9 forms.
- You will also have to complete a new W-9 form if you change your name, business name, address, or tax ID number at any time.
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What is a W-9 form used for?
Form W-9, officially called Form W-9, Request for Taxpayer Identification Number and Certification, is used when a person or entity is required to report certain types of income. The form helps businesses obtain important information from payees to prepare information returns for the IRS. Taxpayers use the W-9 tax form to verify their correct taxpayer identification number (TIN) and to certify that they are not subject to backup withholding.
The W-9 form is used most commonly by independent contractors, gig workers, and freelancers who are paid $600 or more by a business, but it can also be used to report other types of income to the IRS. The information collected on a W-9 form is often used to generate a 1099 tax form, which is required for income tax filing purposes.
The W-9 form is used to collect personal information such as a person's name, address, and taxpayer identification number (Social Security numbers for individuals and employer identification numbers, or EINs, for businesses). A company may request that a person fill out and send a W-9 form so they can accurately prepare a 1099 form, report the payments they make, and know whether or not the person is subject to backup withholding.
The information provided on a W-9 form is used by businesses to prepare 1099 forms that are sent to the payee and the IRS. The requester keeps the form on file and uses the information to prepare other returns, such as 1098 Forms, and to determine whether federal tax withholding is necessary on the payments received.
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What is a TIN?
A TIN, or Tax Identification Number, is a unique number used by the Internal Revenue Service (IRS) to identify a person for tax purposes. It is used to confirm a person's name, address and taxpayer identification number for employment or other income-generating purposes. Independent contractors who work with companies they are not employed by must often provide that company with a W-9 form. The information taken from a W-9 form is often used to generate a 1099 tax form, which is required for income tax filing purposes. The information collected by an entity on a W-9 form cannot be disclosed for any other purpose, under strict privacy regulations.
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What is the difference between a W-9 and a W-4 form?
Form W-9 and Form W-4 are both IRS forms, but they serve different purposes and are filled out by different people. Form W-4 is for employees to inform their employer's payroll department how much tax to withhold from their earned income. It is used to determine how many exemptions an employee may have. Employees should update their W-4 whenever they start a new job or there are significant life or financial changes, such as a change in marital status, the birth of a child, or a change in income.
Form W-9, on the other hand, is for vendors, independent contractors, freelancers, and other individuals who receive non-employee compensation from a company. It is used to find an individual's taxpayer identification number. A W-9 must be signed to affirm that everything within the form is accurate. It is updated whenever an individual's personal or business information changes, such as a new business name or TIN.
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Frequently asked questions
A W-9 form is an official form furnished by the IRS for employers or other entities to verify the name, address, and tax identification number of an individual receiving income.
The information taken from a W-9 form is often used to generate a 1099 tax form, which is required for income tax filing purposes.
Independent contractors who work with companies they are not employed with must often provide that company a W-9.
If you do not furnish a W-9 as requested, your client must withhold taxes from your earnings at a tax rate of 24%.
A W-9 form is used to confirm a person's name, address, and taxpayer identification number (TIN).
