What is w9 documentation?
A W-9 form is an Internal Revenue Service (IRS) tax form that is used to confirm a person’s name, address, and taxpayer identification number (TIN) for employment or other income-generating purposes. A W-9 form is also known as a Request for Taxpayer Identification Number and Certification form.
Do I have to report W-9 income?
When it comes time to report all payments you make to the independent contractor on a 1099 form, you will need the information on the W-9. It’s only necessary to issue a 1099 if you pay the independent contractor $600 or more during the tax year. If you do, you must send the 1099 to the IRS as well.
How do I fill out a w9 for a joint account?
Enter your Social Security number in the SSN field. If the form is for both you and your spouse, enter the Social Security number of the first person listed on your joint account. Circle the corresponding name in the “Name” field to indicate which partner’s number you used.
Should I check exempt payee on w9?
The W-9 has a box to check if you are an exempt payee. If you do not check that box, the payer will assume you are nonexempt and will withhold money for taxes if you fall into one of the categories where backup withholding is required.
What is the purpose of a W 9?
More In Forms and Instructions Use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS to report, for example: Income paid to you. Real estate transactions. Mortgage interest you paid.
Who is exempt from filing a W 9?
An individual who is a U.S. citizen or U.S. resident alien; A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States; Any estate (other than a foreign estate); or. A domestic trust (as defined in Regulations section 301.7701-7).
How long is w 9 form valid for?
Do Completed W-9 Forms Expire? After they are completed, your vendors’, freelancers’ and contractors’ W-9 forms do not expire. However, the IRS requires them to be replaced when specific information is changed, including changes in names, type of business entity or a taxpayer ID number.
How do I fill out a W 9 exemption?
If your entity is exempt from backup withholding, you’ll fill in the first line with your code. This should apply to most entities. 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.
Why would my bank sent me a W9 form?
US financial institutions ask you to complete Form W9 in order to obtain your personal identifying information (name, address, tax ID) to report income paid to you to the IRS, such as interest, dividends, capital gains, cancellation of debt, royalties, rents, etc. or income paid by you to the institution, such as …