Filing IRS Form W-9
Filling out a W-9 form isn't difficult since it only requires a few pieces of basic information. You will usually submit a W-9 form when you receive payments for services you provide as an independent contractor, pay interest on your mortgage or even contribute money to your IRA account.
Key Takeaways
- You’ll usually submit a W-9 form when engaging in certain taxable transactions such as receiving payments for services you provide as an independent contractor, paying interest on your mortgage, or even contributing money to your IRA.
- The person or entity you’re doing business with uses the W-9 to collect your personal or business information, including your Taxpayer Identification Number (TIN).
- The party that will be paying you is responsible for requesting the W-9 form from you but does not have to file it with the IRS.
- You may be subject to backup withholding if you fail to provide a TIN or provide one that’s incorrect.
Form W-9
You will usually submit a W-9 form when you engage in certain taxable transactions, such as receiving payments for services you provide as an independent contractor, paying interest on your mortgage, opening a savings account, or even contributing money to your IRA.
The person or entity you are doing business with uses the W-9 to collect some of your personal or business information, the most important of which is your Taxpayer Identification Number (TIN). If you submit the W-9 as an individual, your TIN is typically your Social Security number. When it’s for your business, the TIN is usually your Employer Identification Number, or EIN.
Filing obligations
The party that will be paying you is responsible for requesting the W-9 form from you. However, the requester doesn't have a requirement to file the W-9 with the IRS. That person or business keeps the form on file and uses its information to prepare your information returns, such as 1099s and 1098s, and determines whether federal tax withholding is necessary on any payments you receive.
TurboTax Tip:
The IRS TIN Matching program enables those that issue information returns to verify TINs with the IRS.
Filling out W-9s
Filling out the form isn't difficult since it only requires a few pieces of basic information. When the W-9 is for a business, enter the business name at the top of the form and check the appropriate box to identity the type of entity. The TIN is entered on part one of the form. Part two is to certify that the information is correct and in certain circumstances requires your signature.
Backup withholding
Payments reported on an information return are usually not subject to federal income tax withholding. However, you may be subject to backup withholding if you fail to provide a TIN or provide one that’s incorrect. If the payer is obligated to withhold federal tax, 24% in 2024 of all amounts payable to you are withheld and remitted to the IRS.
TIN matching
The IRS TIN Matching program enables those that issue information returns to verify TINs with the IRS. The IRS may penalize W-9 requesters that fail to report a correct TIN on a return.
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