The W-9 form is an essential document used by the Internal Revenue Service (IRS) to gather information from individuals who are not traditional employees but still perform work for a company. This could include freelancers, independent contractors, and consultants. This guide will explain what the W-9 form is, who needs to use it, how to properly fill it out, and what to do with it once it’s completed.
What is a W-9 Form?
A W-9 form, officially titled “Request for Taxpayer Identification Number and Certification,” is used by businesses to collect accurate taxpayer identification information from vendors, contractors, and other payees. This information is necessary for the business to correctly report income paid to the IRS.
Who Needs to Fill Out a W-9?
If you receive income from sources other than wages, salaries, or tips, you will likely need to complete a W-9 form. Here are a few examples of individuals who would need to fill out the form:
- Freelancers: Writers, designers, software developers, and others who work independently.
- Independent Contractors: Individuals who work on a per-job basis are not considered employees.
- Consultants: Experts in a specific field who provide advice or services based on their knowledge.
- Gig Workers: People working in the gig economy, like rideshare drivers or delivery persons.
Businesses require a completed W-9 form from these individuals to issue a 1099-NEC form at the end of the year, which reports how much they have paid to each contractor.
How to Fill Out a W-9 Form
Completing a W-9 form is straightforward. Follow these steps to ensure you fill it out correctly:
- Name and Business Name: Enter your full legal name as shown on your tax return. If you are doing business under a different name, include that as well.
- Federal Tax Classification: Check the box that matches your federal tax classification (e.g., individual/sole proprietor, C Corporation, S Corporation, Partnership).
- Exemptions: Some individuals or entities may be exempt from backup withholding or FATCA reporting. If applicable, enter the codes in the fields provided. Most individuals will leave this blank.
- Address: Include your current address (number, street, and apartment or suite number).
- Requester’s Name and Address: The company requesting the form may fill this out. If not, leave it blank.
- Account Numbers: These are optional and are only needed if the requester has multiple accounts for you.
- Taxpayer Identification Number (TIN): Enter your Social Security Number (SSN) or Employer Identification Number (EIN) if you have one for your business.
- Signature and Date: Make sure to sign and date the form to validate it.
How to Fill Out W9 VIDEO
What to Do With Your Completed W-9
After filling out the W-9 form, you should hand it directly to the requester (the company or person who asked for it). You mustn’t send this form to the IRS. The company uses the information on the form to prepare the 1099-NEC form that you will need for your tax filing.
Conclusion
The W-9 is a straightforward but vital form for anyone who works as a freelancer, independent contractor, or consultant. It ensures that the IRS has accurate information for tax reporting purposes. By following the steps outlined above, you can easily complete the form and ensure compliance with IRS requirements. Remember, always keep a copy of every form you fill out for your records to avoid any future discrepancies or issues with the IRS.
