I Need a Form W-9 That I Can Upload to Facebook
When you kickoff a new job, there's a lot of paperwork to fill out, from straight deposit documents and benefits enrollments to your W-4 form. Just when yous're a contractor or cocky-employed person, income taxes piece of work a piffling differently. You will still accept to report your earnings to the IRS, and the companies that use your services will have to report those earnings, too. That's where the W-9 grade comes in.
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Westward-9 Form Divers
The title of Form West-ix is officially Asking for Taxpayer Identification Number and Certification. Employers utilize this form to get the Taxpayer Identification Number (TIN) from contractors, freelancers and vendors. The grade as well provides other personally identifying information like your name and address.
The form acts as an agreement that y'all, as a contractor or freelancer, are responsible for withholding taxes from your income. When you're a full-time employee, your employer withholds some of your income to encompass federal income taxes and FICA taxes (which include Medicare and Social Security taxes). Employers do not brand that withholding for contractors.
At the finish of the tax year, the business you did piece of work for will use the information on your W-9 to complete a 1099-MISC. This grade outlines all the payments made to you. A fiscal institution may besides require y'all to written report interest, dividends and capital gains earned by their customers.
About of the time, a company or financial institution volition transport you a blank W-9 form to consummate before you begin business with them. If you need to issue the class, you lot can download a Due west-nine from the IRS website.
W-9 Class: Who Has to Fill up It Out?
W-9 forms are for self-employed workers like freelancers, independent contractors and consultants. Yous need to use it if y'all have earned over $600 in that year without beingness hired as an employee. If your employer sends you a W-nine instead of a W-four, the company has probable classified you as an contained contractor. Y'all should ostend with the company that this is the case. Knowing your condition can help you plan your tax return.
The W-nine form allows businesses to keep rail of their external workforce. This means you don't send your W-9 course to the IRS. Instead, you send it to your supervisor or the company's homo resources section. If you did multiple jobs for multiple companies, you could fill out a number of Due west-ix forms in the same year. You lot will also have to submit new West-9 forms any time y'all change your name, business proper noun, address or tax ID number.
W-9 Form Instructions
Filling out a W-9 is pretty straightforward. The form itself isn't even an unabridged page long, excluding the instructions. The business that hires you should fill in its proper noun and employer identification number (EIN). You'll so fill up out the form line by line.
Line 1 – Name
This should be your full name. Information technology should match the name on your individual revenue enhancement return.
Line two – Business proper noun
If you take a concern name, trade name, DBA name or disregarded entity proper noun, make full it in here. If you do non accept a business concern, yous tin exit this line blank.
Line 3 – Federal revenue enhancement nomenclature
This section defines how you lot, the independent contractor, is classified when information technology comes to federal taxes. Y'all volition check the kickoff box if yous are filing as an individual, sole proprietor or single-member limited liability visitor (LLC) endemic by an private and disregarded for U.Southward. federal taxation purposes. A sole proprietor business operates under the owner'due south Social Security number and hasn't been registered as some other type of concern. Taxes use to single-member LLCs in the same mode.
The other boxes represent to C corporation, S corporation, Partnership and Trust/estate businesses.
The Limited liability company box is for a Partnership or LLC businesses with multiple members. You can cheque this box if you own an LLC treated as a partnership for federal taxes (fill in "P" in the side by side space), an LLC that has filed Grade 8832 or 2553 and is taxed as a corporation (fill in "C" or "South" in the side by side space depending on the type) or an LLC whose owner is some other LLC not disregarded for federal tax purposes (make full in the appropriate alphabetic character in the adjacent infinite). If your LLC has not filed a request to be taxed as a C or S corporation, it is taxed every bit a Partnership. The "Note" on the form clarifies the LLC-specific rules. You can always seek your attorney's or taxation advisor's aid to ensure you complete your course(due south) correctly.
Line four – Exemptions
You do not need to fill in this section as an private. Only sure businesses or entities with any reason for exemption demand to fill out these spaces. If this applies to you, you lot'll need to provide a number or letter code that indicates that reason.
If your entity is exempt from backup withholding, you'll make full in the first line with your code. This should utilise to most entities. All the same, if your business concern is non, the company who hired you for your services will need to withhold income tax from your pay at a apartment rate of 24% and ship it to the IRS. This is known equally backup withholding.
If you are exempt from reporting required past the Strange Business relationship Tax Compliance Act (FACTA), you will fill in the second line. The latter only applies if you concur your accounts exterior the Usa. If you maintain your account in the U.Southward., you lot can leave the second line blank or write "N/A." If you're unsure about your exemptions, Page 3 of the form outlines situations that would make you exempt.
Lines v & half-dozen – Address, urban center, state, and Zilch lawmaking
Line five requires the address (number, street, and apartment or suite number) where your employer will mail your information returns. The following line, Line 6, leaves a space for you to enter the metropolis, land and ZIP lawmaking of this address.
Line vii – Business relationship number(s)
This is an optional line where you lot can fill in any account numbers your employer may need. Virtually individuals can go out this blank.
Part I – Taxpayer Identification Number (TIN)
You have ii options in this section. Y'all can enter either your Social Security number (SSN) or your employer identification number (EIN). Typically, yous provide your SSN if yous file every bit an individual or single-member LLC. Use your EIN if y'all file equally a multi-member LLC classified as a corporation or partnership. If you are a sole proprietor, you could employ either number, but your SSN is preferable.
If yous are a resident conflicting and you are non eligible for a SSN, you should use your IRS private taxpayer identification number (ITIN).
Again, you may desire to check with your tax advisor or contact the IRS directly to double check your information. Providing an wrong TIN tin can crusade issues with your payments or tax render. It tin can as well pb to future backup withholding.
Part II – Certification
This is where you sign and appointment the course, indicating that y'all provided your accurate information. This is a legal document, so information technology's important to read and follow all instructions advisedly.
Over again, keep your safety in heed when completing and sending a West-9. Before you fifty-fifty fill it out, verify that the request for your form is legitimate. Also brand certain to send the completed form properly. Use a secure method of delivery, like hand commitment, mail or encrypted file attachment. Yous want to make certain you're not accidentally sending your personal information to the wrong people.
How Are a W-4 and Westward-9 Different?
You volition demand to fill out a West-iv when you've merely started a new chore every bit a full-fourth dimension employee or your financial situation has changed (while still remaining a full-time employee). A W-4 form requires some of the same information as a W-ix, like your name, address and Social Security number. These forms as well request information on taxation exemptions. Employers apply the completed W-4 to determine how much to withhold from your paycheck for federal income taxes. Since an employer doesn't withhold income tax for contract and freelance employees, Due west-9 forms don't asking that information.
What Is the Difference Betwixt a 1099 and West-nine?
The 1099 and Due west-9 forms go manus in hand. Independent contractors fill out the W-nine to confirm their tax responsibilities and provide information to their employer(s). In turn, employers use a contractor's Westward-ix to complete a 1099 detailing the worker's income.
There are xviii unlike 1099 forms, each 1 relating to the nature of the income. This includes freelance or contract income, only also real estate sales earnings, debt cancellation, pension contributions and more. The corporeality y'all demand to study depends on the type of income, starting at as depression as $x for interest gains and reaching up to $20,000 for special credit-card transactions.
Every bit an independent contractor or freelancer, you'll receive a W-ix form when you brainstorm your work from the company using your services. And so in January, you'll receive your 1099-MISC form that documents your annual earnings. When yous file your federal taxes, adhere each of the 1099 forms you take received. The company will also file your 1099-MISC with the IRS.
Bottom Line
A W-9 form is crucial to filing your taxes if you're a contract worker, a freelancer or self-employed. The companies you work with do non accept to withhold paycheck taxes for you lot, and the Due west-9 serves equally an agreement that you are responsible for paying those taxes on your own.
Notation that y'all do not send this form to the IRS. Yous send it to the employers who have requested it from you. While it's relatively uncomplicated to fill out a W-9, always double check to ensure your information is complete and accurate. If y'all are unsure how to fill something out, consider looking for a tax auditor to help you make sense of your taxes.
Tips for Getting Through Tax Season
- For people who want some help staying organized, a financial counselor is a great resource. SmartAsset's free tool matches you with up to three financial advisors in your surface area, and you can interview your counselor matches at no cost to decide which one is correct for you lot. If yous're set up to notice an counselor who can aid yous reach your financial goals, get started now.
- If you're self-employed and have worked for a number of vendors, you'll accept to fill out multiple Westward-9 forms. Each vendor who paid you lot more than $600 in a given year will send you a 1099 the post-obit year, by January 31. If you lot are missing a 1099, contact the company.
- Using the right tax filing software tin can help yous ensure that all your revenue enhancement forms are correct. If you aren't certain which to utilize, consider two of the well-nigh popular services, H&R Block and TurboTax. They both offering clear explanations of the procedure and a polish filing experience. Here's a closer look at whether you should choose H&R Block or TurboTax.
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Source: https://smartasset.com/taxes/what-is-a-w9-tax-form