How To Fill out W-9 Form?

A W9 form, also known as a Request for Taxpayer Identification Number and Certification, is a document used by individuals or businesses to provide their taxpayer identification number (TIN) to another person or entity that may need to report income earned from the individual or business to the Internal Revenue Service (IRS). The form is typically used by independent contractors, freelancers, and other self-employed individuals to provide their TIN to clients or other parties who may need to report income earned from their services to the IRS on a 1099 form.

It is also used by businesses to provide their TIN to vendors, suppliers, or other parties that may need to report payments made to the business to the IRS on a 1099 form. The W9 form is important for both the taxpayer and the person or entity reporting the income as it helps ensure that the correct TIN is used for tax reporting purposes.

W9 Form 2023 Updated
W9 Form 2023

Who need to fill out W9 Form?

The W9 form is typically used by individuals or businesses who are considered independent contractors or self-employed by the IRS. This includes freelancers, consultants, and other individuals who provide services to clients and are not considered employees. It’s also used by businesses that are not incorporated, such as sole proprietors, partnership and LLCs that are considered as a disregarded entity for tax purposes.

Additionally, any person or business that makes payments to independent contractors or unincorporated businesses for services or rentals may need to request a completed W-9 form from the recipient. This is because the payer will need the recipient’s TIN to report the payments on a 1099 form to the IRS.

It is important to note that if you are an employee and not an independent contractor, you do not need to fill out a W-9 form, instead your employer will use your W-2 form to report your income to the IRS.

How To Step by Step Fill out W-9 Form?

When completing a W-9 form or any other tax document, it is always advisable to seek the guidance of a tax, financial, or legal professional. In addition, it is essential to thoroughly read the instructions provided on the form to record the required information in the designated fields accurately and to complete the form efficiently. The following is a step-by-step guide for completing a W-9 form:

  1. Complete the first seven sections:

The first section of the form requires you to provide your personal and business identification information. This information can be typed or written, but it is important to ensure that it is legible if written. The following are the initial steps to be completed:

  • Please enter your name: Write or type your full legal name as it appears on your tax return.
  • Enter your business name: Write or type your business name, or disregard the entity name.
  • Choose your federal tax classification: Check the appropriate box indicating what type of business entity you are for federal tax classification purposes. The most common option is a sole proprietorship, but you could also be a C corporation, S corporation, partnership, trust or estate, limited liability company, or another category.
  • Choose your exemptions: You can likely skip this section, but if you have any exemptions from backup withholding or reporting under the Foreign Account Tax Compliance Act (FATCA), enter the correct payee or reporting code. Some corporations are exempt from backup withholding for interest and dividends, but you can check the form instructions for more details.
  • Enter your street address: Write or type the complete address you use on your tax return, including the number, street name, and apartment or suite number. This could be your home or business address.
  • Enter the rest of your address: Write or type your city, state, and zip code. Including your address on the W-9 allows the IRS to match your 1099 forms with your 1040 form and keep track of your tax information.
  • Enter your requester’s information: Next, write or type the full name and address of the person or company that requested that you complete this form. Although this step is optional, it can be beneficial to document this information for future reference.

2. Complete Part I involving your taxpayer identification number (TIN):

The following section to complete on your W-9 form is Part I, which pertains to your taxpayer identification number. Enter your business’ TIN in the appropriate box. If you’re an individual or sole proprietor, it’s likely your TIN is your social security number (SSN). If you’re another type of business, your TIN is your employer identification number (EIN). Alternatively, if you’re a resident alien, sole proprietor, or disregarded entity, you can see the form’s instructions for further details.

If you do not have a TIN, you can refer to the form’s instructions to learn how to obtain one. If you own a new business and have yet to get an EIN, you can still complete the form by writing “Applied for” in the space for your TIN. This will cause you to be subject to backup withholding until you receive your official EIN. You can apply for an EIN through the IRS

3. Complete Part II to certify your form: The final section of your W-9 form is to certify your information under penalty of perjury. This means that you are attesting to the truthfulness of your data and the honesty you have practiced throughout the form. This is an essential form element, as only complete honesty can protect you and your legal interests. By writing or typing your signature

  • Ensure that the correct Taxpayer Identification Number (TIN) has been written for oneself or is currently awaiting receiving.
  • Ascertain that one is exempt from backup withholding or is not subject to it for any other valid reason, such as not being notified by the Internal Revenue Service (IRS) of any such backup withholding.
  • Confirm that you are a United States citizen, resident alien, or any other United States person, such as a partnership, corporation, company, or association created or organized within the United States laws, a domestic estate, or a domestic trust.
  • Ensure that the Foreign Account Tax Compliance Act (FATCA) code or codes entered on the form are accurate and correct.

If you need more in dept step by step on how to fill out W9 form, please watch the following video.

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