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What is a W-9 Form & Why You Need To Fill It Out | Tentho

Written by Asia Gelker | Feb 17, 2023 2:14:19 AM

If you’re a freelancer, contractor, or self-employed individual, you’ve probably heard about the W-9 Form. This document is an essential part of doing business and is required by the Internal Revenue Service (IRS) to keep track of taxable income. In this guide, we’ll take a closer look at what a W-9 form is, why you need to fill it out, and what information it requires.

What is a W-9 Form?

A W-9 form is a document that is used to provide your Taxpayer Identification Number (TIN) to someone who is required to file an information return with the IRS. The form is a request for your basic personal and financial information, including your name, address, and Social Security number (SSN) or Employer Identification Number (EIN).

Why You Need To Fill It Out?

If you’re a freelancer or independent contractor, you’ll need to fill out a W-9 form for any clients or companies that pay you more than $600 in a calendar year. This includes payment for services rendered, as well as any non-employee compensation.

The purpose of the form is to collect the necessary information to ensure that your income is reported correctly to the IRS. By providing your TIN, you’re helping to prevent any discrepancies that could result in fines or penalties.

What Information Is Required?

The W-9 form is relatively straightforward and requires the following information:

    • Your name and business name (if applicable)
    • Your business type
    • Your address and contact information
    • Your TIN (SSN or EIN)
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Who needs to fill out a W-9 form?

As mentioned earlier, if you’re a freelancer, contractor, or self-employed individual, you’ll likely need to fill out a W-9 form for any client or company that pays you more than $600 in a calendar year. However, even if you don’t meet this threshold, it’s a good idea to have a completed W-9 form on hand in case it’s requested by a client or customer.

When should you fill out a W-9 form?

You should fill out a W-9 form as soon as you’re asked to do so by a client or customer. This will ensure that you’re providing the correct information and that your income is reported accurately to the IRS. It’s also a good idea to keep a copy of the completed form for your records.

How to fill out a W-9 form?

Filling out a W-9 form is relatively easy and straightforward. Here are the steps you’ll need to follow:

    1. Download the W-9 form from the IRS website.
    2. Fill out your name and business name (if applicable).
    3. Indicate your business type (e.g., sole proprietor, partnership, LLC, etc.).
    4. Enter your address and contact information.
    5. Provide your TIN (SSN or EIN).
    6. Sign and date the form.

Tips for filling out a W-9 form correctly:

  1. Make sure to double-check your TIN before submitting the form.
  2. Use your legal name and business name (if applicable).
  3. Use the exact same information on all documents to prevent discrepancies. 
  4. Keep a copy of the completed form for your records.

FAQs about W-9 forms:

Q: Do I need to fill out a W-9 form if I’m an employee? A: No, employees do not need to fill out a W-9 form. This document is only required for independent contractors, freelancers, and self-employed individuals.

Q: Can I fill out a W-9 form electronically? A: Yes, you can fill out a form electronically as long as the document is in a format that is acceptable to the requester.

Q: Is a W-9 form the same as a W-4 form? A: No, a W-9 form is not the same as a W-4 form. A W-4 form is used by employees to indicate their tax withholding preferences, while a W-9 form is used by independent contractors to provide their TIN to clients or customers.

If you’re a freelancer, contractor, or self-employed individual, filling out a W-9 form is an essential part of doing business. This document ensures that your income is reported correctly to the IRS and can help you avoid any potential fines or penalties. By following the tips outlined in this guide, you can ensure that you’re providing accurate information on your W-9 form and staying compliant with tax regulations.