About Form W-9, Request for Taxpayer Identification Number and Certification Internal Revenue Service

If you complete Form W-9 as an individual, you don’t need to worry about filling out this section. Alicia Bodine and Joel Anderson contributed to the reporting for this article. Individuals making donations to charitable organizations do not need to fill out a W-9 form. Some donations may be tax deductible and covered by other forms, depending on the type and amounts donated. While a W-9 looks straightforward, there are many instructions and sometimes unclear questions. When filling out a W-9, ensure you aren’t misreading a question, answering incorrectly, or skipping important sections.

Line 3: Federal Tax Classification of Your Business

You should only consider refusing to send a Form W-9 if you net sales suspect the entity requesting it may be illegitimate due to the sensitive nature of the personal information found on such forms. Miscellaneous income is legally defined as any taxable income that isn’t categorized as revenue, such as wages, dividends, compensation for services, or interest. The IRS includes rents, prizes, awards, medical payments, crop insurance proceeds, and numerous other examples in their definition of miscellaneous income. Businesses use the name, address, and Social Security number or tax identification number (TIN) contractors provide on Form W-9 to complete that information return. Neither the sender nor the recipient should send a copy to the IRS.

Tax tools

A W-9 is a form filled out by independent contractors to provide tax information to the business employing them as long as they are paid $600 or more. A W-4 fedex w9 will request information such as the taxpayer filing status (i.e. is the taxpayer married?). The IRS says you should apply for your number and write „applied for” in the space for the TIN. You’ll want to get this number as quickly as possible because, until you do, you’ll be subject to backup withholding.

Who is required to fill out a W-9?

The IRS issues penalties for false or incorrect information on W-9 forms, so be sure you’ve accurately supplied all the information requested. A W-9 form provides the information third parties need to complete information returns they file with the IRS. The IRS considers a sole proprietor an individual who owns an unincorporated business without help, as long as the business isn’t an LLC run as a C-corporation. Even after filling out the form, do not send it until you are 100% sure that you have correctly entered all details. If you filled out a paper version of the form, ensure your handwriting is readable. In the case of a Single-Member Limited-Liability Corporation (SMLLC) that hasn’t elected to be treated as a corporation or a partnership, the IRS considers it a disregarded entity.

When a company pays a non-employee or other entity more than $600 in a year for their service, the company must file an information return. To ensure the information returned is accurate, the company sends out a W-9 to gather all required information directly from the vendor. 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.

Tax Changes California Retirees Need To Know About for 2025

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• The form can be printed and signed by hand or filled out digitally and e-signed.
• Form W-9 is one of the most straightforward IRS forms to complete, but if tax forms make you nervous, don’t worry.
• A W-9, on the other hand, collects information that helps a third-party payer report payments to the IRS.
• Independent personal services (a term commonly used in tax treaties) are personal services performed by an independent nonresident alien contractor as contrasted with those performed by an employee.
• Alicia Bodine and Joel Anderson contributed to the reporting for this article.

You may cross out item 2 if you’re filling out Form W-9 in connection with a real estate transaction. Item 2 doesn’t apply in this case, so it doesn’t matter if you’re subject to backup withholding. As an independent contractor, vendor, freelancer or other individual receiving nonemployee compensation, you typically do not work for the person or business as an employee. If you don’t work as an employee, you’ll typically have your earnings reported on a Form 1099-NEC and will need to prepare a W-9.

• Like freelance platforms, to sign up with gig companies, you must fill out a W-9.
• If you refuse to fill out a Form W-9 in response to an entity with a legitimate request, the requesting entity must withhold taxes from your salary using a flat 24% rate.
• They can then use these TINs to help them fill out 1099 forms at the end of the year.
• LLCs should expect to have to fill out W-9s over the course of their business.
• You’re generally only required to sign it if the IRS has notified you that you previously provided an incorrect TIN.

Enter the appropriate Tax Identification Number for the entity represented on this form. If filing as an individual, sole proprietor without an EIN, or single-member LLC, enter your SSN. If filing on behalf of a company with at least one employee, a sole proprietor with an EIN, a corporation, or a partnership, enter their Employer Identification Number (EIN). Many entities can request a W-9; although this list isn’t inclusive, here are some of the most common examples.

Below is a list of specific examples and possible situations where an individual may need to fill out a Form W-9, but it is not all-inclusive. Most casinos and gambling sites will not require a W-9 when you initially sign up, but after a reportable win, they will ask you to fill out a W-9 to report your winnings to the IRS. Churches must also use Form 1099s to record their business transactions. There’s also no guarantee that the recipient will store the form securely even if you send it securely, so ask about their method of storage prior to sending. In addition, you have the option to list relevant account numbers at the end of this top section of the Form W-9. This account number section may be used to uniquely identify someone based on a number within the client’s system.