A W-9 form is used for taxpayer identification and certification when freelancers and independent contractors work for a business. The business owner needs this form to properly report certain payments to the IRS. If your entity is exempt from Why Would A Vendor Request A W9 Form? Purpose Behind The Need backup withholding, you’ll fill in the first line with your code. However, if your business is not, the company who hired you for your services will need to withhold income tax from your pay at a flat rate of 24% and send it to the IRS.
Chances are you’ve heard of this IRS form, but what is a W-9 tax form for? Understanding the W-9 form purpose is crucial for business owners and independent contractors to ensure proper compliance with tax reporting. In this article, we’ll discuss the W-9 form definition, what it’s used for, best practices, and more.
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More self-employed deductions based on the median amount of expenses found by TurboTax Premium customers who synced accounts, imported and categorized transactions compared to manual entry. Your certification states that you are a U.S. citizen, https://quick-bookkeeping.net/ other U.S. person or resident alien. If you are preparing your W-9 as a joint account, only the person whose TIN shows in Part I should sign. If you complete Form W-9 as an individual, you don’t need to worry about filling out this section.
- Chances are you’ve heard of this IRS form, but what is a W-9 tax form for?
- If you complete Form W-9 as an individual, you don’t need to worry about filling out this section.
- After reading this brief guide, you should have a clearer understanding of “what is a W-9 form?
That means you’ll be responsible for the employer’s share of Social Security and Medicare taxes, and you won’t be eligible for unemployment compensation if you are laid off. To report some of this related information to the IRS, independent contractors, freelancers, and other non-employees that received payments should fill out a Form W-9. Accounting Software can help you stay on top of your income, outgoing sales, and tax return documents.
What Happens if I Do Not Have a W-9 Form for Someone Who I Paid?
Form W-9 is an Internal Revenue Service form used to verify and certify that you are working with a legitimate business that is paying its taxes. LegalZoom provides access to independent attorneys and self-service tools. We are not a law firm and do not provide legal advice.