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What is the “Request for Taxpayer ID and Certification” or W-9 Form?

Form W-9 is an inherent document that collects personal data, including the individual’s legal name, address, Social Security Number (SSN), and other relevant information to submit to tax-related services. In the United States, the document is recognized as the Request for Taxpayers Identification Number and Certification. The form is tailored by the Internal Revenue Service (IRS) and can be obtained at the official website. To reduce effort and fill out the PDF file, we encourage you to try our advanced editing software.

The form is utilized as a fundamental basis for creating the IRS form 1099-MISC needed for nonemployees (the business or the employer completes form 1099 MISC). Form W-9 demands annual renewal and adjustments. One shouldn’t serve this paperwork to the IRS as it is just an instrument of gathering an independent contractor’s personal data. Note that Form W-9 only reflects business relations between the contractor and the employer and not the amount of the contractor’s yearly earnings.

When to Use the Form

The primary purpose of the W-9 Form is to provide the contractor’s consent to serve their income tax, Social Security, and Health Care Services. The document is offered to every US-invited employee who should complete and return the form to the entity, business employer, or the entity’s HR division. It is advisable that the latter keep the document for a few years if the respected information is requested by the IRS or any other related institution.

The business uses the data introduced in Form W-9 to fill out Form 1099, filed to the IRS. The Internal Revenue Service collects this paperwork to understand the independent vendor’s (the freelancer’s) annual earnings and calculate the income tax.

Once the contractor (freelancer) appends their signature, they approve all data submitted and cannot be subject to backup withholding.

Who Should Use Form W-9?

Whenever a person gets income that surpasses 600 USD annually from a client, they should report their earnings to the IRS regardless of their independent and self-employed status. It is a significant misconception to consider that freelancers do not pay taxes at all. In fact, the forms that an independent contractor renders can be more complicated than those a full-time employee fills out. Therefore, the IRS Form W-9 is essential for:

Autonomous proprietors and freelancers

Ensure to revise the status of your employment. Freelancers should complete Form W-9, while full-time workers use form W-4. Should your earnings be 600 USD and higher, complete the W-9 provided by the client to whom you deliver your services. The employer will use that data to file a 1099 Form to IRS. If your yearly income from this client is under 600 USD, you are exempt from filling out this form.

Entities hiring freelancers

If your contractor’s earnings exceed 600 USD, you need to provide this data to the IRS with the 1099 form. To complete the document, you require reliable information from the Form W-9.

Financial organizations and their clients

A financial organization might need the W-9 form to repay the person’s income from dividends and interest.

Can I Get by without Form W-9?

Being self-employed or a freelancer, an individual has to be sure they know their responsibilities and privileges. Make sure you are familiarized with relevant requirements and understand when the IRS W-9 Form is correct to be used. Clarify the purposes of filling out the W-9 Form if you are prompted to do so by a business entity or the employer.

Sometimes, completing the document is unnecessary, as the business (for example, a financial institution) does not require such information. As a rule, banks have inherent details of one’s taxpayer identification number (TIN) at their disposal. Ensure its dependability not to fall into a double-dealer’s hands. Make all possible efforts to guard your social security number, tax identification number, and other ID data from identity theft, scammers, and fraud.

Another legal reason not to fill out the W-9 form is being a foreign person. In this case, the individual should complete the Withholding of Tax on Nonresident Aliens and Foreign Entities form. Suppose a person becomes a residential alien (for example, a student participating in the scholarship program within the US). They have to provide certain attachments to the IRS W-9 Form to be exempt from the US tax charges on a particular income.

What Does the W-9 Cover?

Form W-9 is usually used as a PDF containing the petition itself, the instructions, and the essential data regarding the procedure of submitting the document. Below is a list of relevant sections:

The W-9 paperwork also provides general and specific instructions and a list of related documents.

Laws and Conditions

The Internal Revenue Service regulates the procedure and the W-9 revisions. The advanced information is offered on the IRS official website and contains relevant updates and guidance. Here are some regulations to know: