What is a Fillable W-9 form? – Independent contractors and freelancers fill out a W-9 form to inform the Internal Revenue Service (IRS). This form includes information such as your name, address, taxpayer identification number (TIN), which might be your Social Security Number (SSN) or your Employee Identification Number (EIN). When a company or individual needs your social security number to tell the IRS how much they have paid you, they will issue you a W9.
As a freelance contractor, you have a more significant say over when and how jobs are completed. However, you do not receive the same perks as a full-time employee, such as a 401k match or health insurance. This affects your taxable income as well. As an independent contractor, you can deduct more for work costs and home office expenditures. Depending on your job, your vehicle might potentially be a tax deduction. Consult with a competent accountant to determine what you may and cannot claim for your business.
Who Fills W-9 form?
W-9 forms are used by self-employed workers such as freelancers, independent contractors, and consultants. You must use it if you earned more than $600 in that year without being recruited as an employee. If the employer gives you a W-9 form instead of a W-4, you are most probably classed as an independent contractor. You should confirm this with the company. Knowing your status might help you prepare your tax return. The W-9 form enables firms to keep track of their external staff. This implies you don’t transmit your W-9 form to the IRS. Instead, you submit it to your boss or the company. You might fill out numerous W-9 forms in the same year if you worked for various firms. You are also supposed to file new W-9 forms if your name, business name, address, or tax ID number changes.
Common W-9 problems
Despite the form’s simplicity, freelancers still report clients or other entities who are unsure what they are for. They may receive a request to complete one from someone other than a client. While you may receive a request for a W9 from anyone giving you non-employee income, you will most likely be aware of it ahead of time. Interest and dividend payments are frequently paid using the information on a W9, so don’t be shocked if you receive a request from a bank or other financial institution with whom you do business. Your landlord or another firm, on the other hand, would never require this information. There is no need to ask you for this sensitive information if the firm or individual is not paying you for services or the value of assets. You should request further details before agreeing.
Handling your W9 with care
Many freelancers make a colossal error when it comes to keeping their information safe. Unless you have some encryption on your messaging system, it is suggested that you never transmit your completed W9 to a customer as an attachment to an email. Alternatively, you may utilize a secure document electronic document delivery provider or mail your form to your customer.
How to Fill out a W-9?
- Fill in the details with your name or the name of your company.
- If you did not file your taxes as a company, partnership, or LLC, check the box for “Individual/Sole proprietor.”
- Only check the “Exempt payee” option if you are sure you are exempt from backup withholding. The requirements are listed on the form under “Specific Instructions, Exempt Payee.”
- Enter your current address in the provided field.
- Enter your current address in the provided field. This is your tax identification number (TIN).
- Finally, sign and date the W-9 form. When you’re done, please return the form to the firm or people who provided it. Please do not send the W-9 to the IRS.
Returning Fillable W-9
If you receive a W-9, you must complete it as quickly as possible. You will then give it back to the person who requested it. You may either mail or email the form. In any way you choose to return the W-9, keep confidentiality in mind.