The W-9 tax form is one of the most important tax forms you will need to fill out. It is used to report your income to the IRS and to claim your tax deductions. If you don’t fill out the form correctly, you could end up owing the IRS a lot of money.
This article will outline five must-know facts about the W-9 tax form. We will also show you how to fill out a w9 so that you can avoid any mistakes. Read on!
The W-9 form is a request for your taxpayer identification number and certification. This is the number that the IRS uses to track your income and tax liability. This could be your Employer Identification Number (EIN), your Social Security number (SSN), or your Individual Taxpayer Identification Number (ITIN). You will need to provide your taxpayer identification number on the W-9 form so that the IRS can properly credit your tax return.
While the W-9 form is an important tax form, you don’t submit it to the IRS. Rather, you will give the completed form to your employer, bank, or financial institution. They will then use the information on the form to report your interest income to the IRS.
If you are self-employed or a freelancer, you must send the form to the financial institution so that they can send back Form 1099-MISC. This is a form you must submit to the IRS if someone paid you more than $600 a year.
The deadline to file Form W- is the same as the deadline to file your taxes. For most people, this is April 15th. However, if you are self-employed or a freelancer, you will need to file your taxes by January 31st.
You can file the form anytime before you need to file your taxes. However, it’s best to fill out the form as soon as possible so that you don’t forget. This way, you can avoid any penalties or interest charges from the IRS.
This form is only filled by self-employed individuals, contractors, freelancers, and consultants. If you are an employee, you don’t need to fill out this form. Your employer will withhold the appropriate amount of taxes from your paycheck and send it to the IRS.
As an independent contractor, the company that hires you doesn’t have the obligation to withhold income taxes, takeout Social Security taxes, or pay for Medicare. This is your responsibility. This form helps the IRS determine how much tax you should pay.
When filling out the W-9 form, you might be tempted to give a false Social Security number. After all, if you’re not an employee, your employer doesn’t need to know your SSN. However, this is a huge mistake.
It’s important to note that the IRS can impose harsh penalties for providing false information on a tax form. If you are caught, you could be fined up to $500-$10,000 or even imprisoned for up to a year.
So, what should you do if you don’t have a Social Security number? You can apply for an Individual Taxpayer Identification Number (ITIN). This is a special number issued by the IRS for people who don’t have an SSN.
Now that you know the basics of the W-9 form let’s take a look at how to fill it out. The form is actually pretty simple and shouldn’t take more than a few minutes to complete. Below is a step-by-step guide:
- Enter your name: Enter your legal name as it appears on your tax return.
- Write your business name: If you are self-employed, write your business name. If you are an independent contractor, you can leave this blank.
- Enter your federal tax classification: This should be either “individual/sole proprietor” or “C-corporation”.
- Choose your exemptions: You can claim exemption from backup withholding if you meet certain requirements. This includes being a non-resident alien, having certain exempt payees, or being a religious minister.
- Enter your address: Enter your home address as it appears on your tax return.
- Write any other address: This should include your city, state, and ZIP code. This allows the IRS to match your 1099 forms with 1040 forms and track your tax information.
- Enter your requester’s information: This is the person requesting the form’s name and address.
The first thing you need to do is enter your taxpayer identification number. This can be your Social Security number, Individual Taxpayer Identification Number, or Employer Identification Number.
If you are a sole proprietor, enter your SSN. If you are a corporation, enter your EIN. And if you don’t have either of these, you can apply for an ITIN.
Under penalties of perjury, make sure to sign and date the form. By doing so, you are certifying that the information you have provided is accurate to the best of your knowledge. Do not provide any false information on the form, as this can result in severe penalties from the IRS.