Most broadly, Form W-9 must be filled out by independent contractors that perform work for another party with which they are not employed. This includes freelance workers or gig employees under non-employment structures. Backup withholding requires businesses to put aside advance taxes for people who have had certain tax issues. These problems include not providing an accurate tax ID or failure to report interest or dividend income.
Form W-9 vs. W-4
Any entity with at least one employee must possess an Employer Identification Number (EIN). When filing a Form W-9, they must use the EIN section in Part I instead of the SSN section. A W-9 form is not required if the receiving entity makes less than $600 during the fiscal year.
- Form W-9 is an IRS tax form that requests information for an individual defined as a U.S. citizen or a person defined as a resident alien.
- You should enter the information to specify the correct account for tax reporting purposes.
- Any required taxes based on gains related to the provided W-9 are the responsibility of the TIN holder listed on the document unless the taxpayer is subject to backup withholding.
- If you made payments to more than one payee or the account is in more than one name, enter on the first name line of the information return only the name of the payee whose TIN is shown on Form W-9.
Filing electronically with FIRE
Forms W-9 showing an ITIN must have the name exactly as shown on line 1a of the Form W-7 application. If you are a PFFI reporting a U.S. account on Form 8966, FATCA Report, and the account is jointly held by U.S. persons, file fedex w9 a separate Form 8966 for each holder. If several persons qualify as withholding agents for a single payment, the tax must only be withheld once. This change provides the flow-through entity with information regarding the status of its indirect foreign partners, owners, or beneficiaries, so that it can satisfy any applicable reporting requirements.
Line 6: City, State, and Zip Code
However, the following payments made to a corporation and reportable on Form 1099-MISC, Miscellaneous Information, are not exempt from backup withholding. Many entities can request a W-9; although this list isn’t inclusive, here are some of the most common examples. Its primary purpose is to confirm the identity (e.g., full name, address, taxpayer identification details) of a person receiving income from another person (the requesting entity). Backup withholding is money sent to the IRS from income payments which otherwise wouldn’t be subject to withholding. Payers may be required to withhold taxes to ensure that the IRS will receive income taxes that are owed to them.
Special Considerations When Filing Form W-9
The IRS considers freelance musicians independent contractors, so they must fill out a W-9 any time they receive money in exchange for their services. As an independent contractor, vendor, freelancer or other individual receiving nonemployee compensation, you typically do not work for the person or business as an employee. If you don’t work as an employee, you’ll typically have your earnings reported on a Form 1099-NEC and will need to prepare a W-9. If you must email the form, you should encrypt both the document and your email message and triple-check that you have the recipient’s correct email address before sending your message. Free services are available online to help you do this, but check their reputations before trusting your documents to them.
Business–contractor arrangement
- For more information on the names and TINs to use for information reporting, see section J of the General Instructions for Certain Information Returns, available at IRS.gov/instructions/i1099gi.
- Foreign financial institutions are generally required to report payments to, and withhold taxes from payments to their customers that are United States persons.
- Companies who engage you as a contractor or make payments to you for services you provide will likely ask for a completed W-9.
- Independent contractors are not the only ones who must complete Form W-9s.
- This will be the address where the person or business will mail you your 1099.
This is because some of the money used can be spent on taxable expenses, such as room and board. Become familiar with Form W-9 and the IRS regulations concerning it, learn who needs one, how to fill it out, what information is needed, and how to request one from another person. Let a local tax expert matched to bookkeeping your unique situation get your taxes done 100% right with TurboTax Live Full Service. Your expert will uncover industry-specific deductions for more tax breaks and file your taxes for you. We’ll search over 500 deductions and credits so you don’t miss a thing. Your certification states that you are a U.S. citizen, other U.S. person or resident alien.