Learn what education credits and deductions you qualify for and claim them on your tax return Get started. The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Skip To Main Content. If you are operating a business under a separate name, you should enter that on the second line.
In the next section, you select your tax classification. Enter your mailing address. Nonresident aliens who do not have Social Security numbers should enter their assigned TIN in this field. Sign and date the form at the bottom. Backup withholding The IRS sometimes requires the person or entity requesting the W-9 to withhold a percentage of your earnings and send them to the IRS to pay your federal income taxes.
This is known as "backup withholding. If you withdraw money from your IRA, this amount is taxed as income. Individuals will receive a R at the end of the year that reports the total amount of withdrawals you made during the year. The form will also typically show the taxable amount on the form itself. The K form is typically used when you receive payments via debit, credit or store-valued cards.
This is common for online retailers who accept card payments online. A S form is used to report income gained from real estate transactions. This could include the selling of property or rental income. It is the seller's responsibility to track and submit all relevant information regarding the sale to the IRS. Related: Guide to Unemployment Benefits. Both companies and individuals may need to fill out a For example, employers will send out W-9 forms when they first begin working with an independent contractor to collect their tax information, but they will also complete a at the end of the year to record the total payments they made to that contractor.
Individuals need to fill out the W-9 if they work as a freelancer or independent contractor. They will also need to file a to the IRS at the end of the year for each business they provided products or services to. Individuals may also receive a for other income, such as interest on investments or if you accept online payments via credit or debit cards.
The form must be completed and filed with the IRS by January 31st whether you file by electronic or paper mail. The form you need to use will largely depend on who is requesting the information. If you are an independent contractor and the company you are working with needs information about you, then you need to submit a W If it is the federal government requesting the information, then you'll need one of the forms to report on your various income sources.
Those who fill out Form W-9 must also certify that they are exempt from backup withholding. Because the W-9 also requires a Social Security number or tax ID, it should be guarded carefully to protect from identity theft. They should also have concerns if they receive a W-9 form from a company for whom they are supposed to be working as a regular employee; the company may be trying to defraud them of benefits they are entitled to by counting them as an independent contractor.
If an LLC operates as an independent contractor for other companies, then it too must complete a W-9 form. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bench assumes no liability for actions taken in reliance upon the information contained herein. Sign up for a trial of Bench. No pressure, no credit card required. For Partners. Contents What is form W-9?
Who has to fill out a W-9? How do I fill it out?
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