![]() Is this correct? Do I complete the W9? OR only for our labor/hours and not provide the original receipts as I believe I can put the $6k of landscaping and water drainage work we’ve installed into home improvement. ![]() When I asked why, the city gave me a blanket statement from accounting that they needed Ws (which type has not been clarified) We were awarded the grant and now I am being asked for a W9 which concerned me as I purchased the supplies with funds I earned from a job (already taxed as income) I had the time but needed $ for the pipes, soil, plants, ex. This year I applied for clean water/rain garden grant. If you’re not sure who they are, or why they are asking you for one, you should find out if there is a legitimate reason before handing over any personal, potentially sensitive information.Very much hoping you can advise as I believe I may get double taxed and my expenses will be written off as someone else’s. Do not leave it unattended or save it on a public computer, and always send the completed form in a secure manner.įor the same reasons, confirm you know the business or person that’s requesting a W-9 from you. It’s also very important to treat the completed form as a sensitive document, as it contains information about yourself (and possibly the hiring company) that could be used fraudulently (such as your tax identification or Social Security number).Īlways protect the information and take general privacy precautions. Meaning you won’t have to send a W-9 tax form to companies for those small projects you completed. The IRS recognizes this, and as a result, does not require companies to send you a 1099 if they paid you less than $600 in a single year. If you’re a freelancer, it can be difficult to procure a 1099-MISC form from everyone you work for in a given year. Make sure that you definitely need to fill out a W-9, not any other kind of tax document.įor example, permanent and full-time employees generally need form W-4, not a W-9. This is used to help employers determine the amount of money to withhold for the taxman, and is not suited for freelancers. This could include information like your Social Security number, tax identification number, name, business name, address, or anything else on the form. You’ll need a new W-9 form if any of your relevant information has changed since your last form was submitted. Once the form is complete, send it back to the person or company who requested it, at which point it needs to be completed entirely. The W-9 needs a signature and date in the final section. In the second section, the individual filling out the W-9 tax form must add their Social Security or employer identification number (EIN). In the top section, the employee or contractor should write or type their personal information, including their name, business name (if applicable), address, and tax classification: IRS form W-9 is a four-page document, but all fillable fields are on the first page. You may be sent a W-9 by your employer, otherwise, you can easily access an up to date copy via the IRS website (irs.gov). You’ll use W-9 tax forms to set up payroll for employees and to create W-2s and 1099 forms for every employee and contractor during the federal tax season every year. If you manage payroll or taxes for a company, it’s important that you keep a completed W-9 on file for each active working employee and contractor. This is typically a fixed rate of 24% for the 2018 to 2025 tax years. It’s unlikely you’ll be subject to backup withholding, however, if you are the contractee then you will need to withhold tax from your pay. You will also need to include information about your ‘backup withholding’ status. This guarantees that they have all of the information they need to file their taxes with the IRS, and to generate and send your 1099 for your personal income tax return.įorm W-9 will need information such as the contractor’s full name, the business’ name, what kind of business it is, and the tax identification number/Social Security number (depending on whether the contractor is a business or a sole proprietor). To ensure that you receive your 1099s in time for tax season, you’ll need to submit a completed W-9 tax form to each company prior to working on projects for them. To do that, you’ll need a 1099 form from each company that you’ve completed contract work. Your employer will not retain money for taxes, in the same way, they would for permanent employees, so you’re responsible for doing the accounting yourself. Who needs to complete a W-9 form? Independent contractorsĪs an independent contractor, you’re required to pay taxes on the income you earn and you must file a tax return with the IRS each year.
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