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W9 Tax Form |
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The W-9 Form is a legal document required by the IRS for certain taxation purposes. To be more precise, it is the IRS form used by a company to request your taxpayer identification number. Therefore, by submitting a W-9, you are attesting the government that the tax identification number you are providing is correct and accurate, and that you are not subject to backup withholding.
So if you or your company are hired to provide services to another firm, you may receive a blank W-9 Form to fill out. As the rule of thumb, if you make more then $600USD in any one year period, you must fill out a W9 Form. At the end of the year, the 1099 form then provides a record of earnings for the person. So usually the Form W-9 is sent to independent contractors, consultants, and other self-employed workers.
To be honest this form is not that much of a problem completing as it basically asks for some straight forward information about you such as
- First and Last Name
- Address
- City
- State,
- ZIP
- Taxpayer Identification Number (i.e. either your Employment Identification Number (EIN) or Social Security Number (SSN), depending whether your a Individual, Corporation, LLC, Partnership.)
Unlike other tax forms, the degree of flexibility of W-9 Form is relatively high. For instance it does not require an additional identification as in the case of the W-4 Form where your signature has to be witnessed by an employer. Apart from that, the individual merely sends a W-9 in most cases, which can be a copy of the original or alternately, it can be scanned and emailed.
One of the other unique feature of the W-9 Form is that it does not withhold taxes, or social security payments. This makes it clearly different from the W-4 form which allows employers to reduce them directly from the employee’s income. Consequently a person filing a W-9 must make sure to withhold a portion of his/her income to avoid large and unwelcome taxes due at the end of a fiscal year.
Another important fact to know is that those who are not citizens may be required in certain occasions to file a W-8 Form, instead of filling a W-9. However this is not always the case. For instance independent contactors such as freelancers living in other countries may simply file the W-9, which will provide the employers or financial institutions with a way to keep record of payments.
In case you need more instructions or even to download the W-9 Form, you may just log on to the main website of IRS and get it done. |
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