What is a Form W-9?
Published on September 24, 2024
by Clark Stott
Clark Stott has been with Expat Tax Online since 2015. Being a dual national based in the UK, Clark has unique experience helping US citizens (and Accidental Americans) become tax compliant via the Streamlined Tax Amnesty program. Clark likes to help Americans in the UK keep their tax situations as simple as possible to avoid harsh IRS treatment.
Table of Contents
A W-9 Form is a document you fill out to give your taxpayer information, like your Social Security Number (SSN) or Employer Identification Number (EIN), to a person or business that needs to report the money they pay you to the IRS.
This form is used mostly for jobs where you’re not an employee, such as freelancing or contracting, to make sure the correct amount of taxes is reported to the government.
Who needs to fill out a W-9 Form?
You need to fill out a W-9 Form if you’re earning money as a freelancer, contractor, or in any job where you’re paid directly by someone who isn’t your employer.
For example, if you do freelance work for a company, they’ll ask you for a W-9 to report the payments they make to you.
It’s also used if you receive income from things like investments, where you earn interest or dividends.
Where can I find a W-9 Form?
You can find it on the official IRS site. (https://www.irs.gov/pub/irs-pdf/fw9.pdf)
What if I’m way behind on my U.S. tax returns?
There is a special IRS program to help you catch up on your U.S. taxes safely, without fines and penalties
STREAMLINED AMNESTY
It’s for American citizens that didn’t know they had to file U.S. tax returns each year, and have therefore fallen behind. Some more than 30 years! With the IRS Streamlined Procedure, say goodbye to overdue tax returns, late fees, and penalties. If you have children, we can backdate your Child Tax Credit Refund for 3 years.
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How do I fill out a W-9 Form?
To fill out a W-9 Form, follow these steps:
- Line 1. Your Name: Write your full name as it appears on your tax return.
- Line 2. Business Name (if applicable): If you have a business or are using a different name, write that in the next box. If not, you can leave it blank.
- Line 3a. Tax Classification: Check the box that describes your status—like individual, sole proprietor, or corporation.
- Line 5 and 6. Address: Write the mailing address where you want to receive tax-related documents. This is where the requester of Form W-9 will mail your information returns.
- Line 7. Social Security Number (SSN) or Employer Identification Number (EIN): Most people will just put their SSN here. If you have an EIN for a business, you would put that instead.
- Signature: Sign and date the form to confirm everything is correct.
Once you’ve filled it out, give the form to the person or business that requested it from you, not the IRS.
What if I don’t have an SSN?
If you don’t have an SSN, you can fill out Form W-8 instead.
Why shouldn’t I give my W-9 Form directly to the IRS?
You shouldn’t send your W-9 Form directly to the IRS because it’s not meant for them; it’s not your responsibility to do so.
The W-9 Form is used to give your personal information, like your Social Security Number (SSN), to the person or business that needs to pay you.
They use this form to report the payments they make to you to the IRS.
What happens if I don’t submit a W-9 Form?
If you don’t submit a W-9 Form when someone asks for it, they might have to withhold 24% of the money they owe you to cover taxes.
This is called “backup withholding.“
The IRS requires this because, without your information, they can’t properly track your income for tax purposes.
Not providing a W-9 could lead to other issues too, like delays in getting paid or problems with your taxes later on.
Is the W-9 Form the same as a tax return?
No, the W-9 Form is not the same as a tax return.
The W-9 is a form you fill out to give your personal information, like your Social Security Number (SSN), to a person or business that’s paying you.
What’s the difference between a W-9 and W-4 Form?
The W-9 is for independent contractors, freelancers, or anyone who isn’t an employee but still gets paid. It’s used to give your taxpayer information to the person or company paying you.
The W-4 is for employees and is given to their employer. It tells the employer how much tax to take out of the employee’s paycheck.
So, the W-9 is for non-employee payments, and the form W-4 is for regular employees’ paycheck tax withholding.
Can I refuse to fill out a W-9 Form?
Technically, you can refuse to fill out a W-9 Form, but there are consequences.
As stated previously, if you don’t provide your taxpayer information when requested, the person or business paying you may be required to withhold 24% of your payments as backup withholding.
This amount is then sent to the IRS to cover potential taxes.
Since refusing to fill out a W-9 can also delay payments or create complications in tax reporting, it’s generally better to submit it when asked.
How often do I need to update my W-9 information?
You typically only need to update your W-9 information when something changes.
For example, if you change your name, address, or taxpayer identification number (like a Social Security Number or Employer Identification Number), you should fill out a new W-9 Form and give it to the person or business that requested it.
If you haven’t submitted a W-9 for a long time, it’s also a good idea to check with your payer to ensure your details are up-to-date.
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