Soon after you’ve landed your job of the consultant or an independent contractor you may be asked to print w9 form and submit it to the company. This is a common thing you have to do to get ready for the tax season. However, those who have little tax filing experience may not know all the rules. You may feel confused and overwhelmed with questions that keep arising in your head. Who can sign a w9? Why do I need it? How do I fill it out? What if I don’t send it on time? Is it just me or is there someone else who completes the form? Don’t worry! We’ll try to clarify everything in the next two paragraphs.
If a client or a business hires freelancers to do the job and pays them $600 or more, they must report this income to the IRS. For this, the person paying you completes 1099-MISC form. However, it is impossible without payee’s identification number that is generally reported on W9 form. On the IRS website you can get free fillable w-9 form ready for completion.
Don’t worry that you will not understand how to fill out the form or where to send it. W9 is rather straightforward. There is only one filer, that is the person classified as freelancer, consultant ot independent contractor who gets wages or salary paid by the company. The filer is required to enter his identification number, contact details and business name. Certification part contains three statements that serve to prove the previously entered information. Below this part there is a signature field. As a taxpayer and U.S. resident you must sign the form and send it to the requester. Generally this is a business, an entity or a client pays contractor for the job. If you doubt the information you’ve provided, consult the guide attached to the form.
Every tax document is accompanied by brief yet comprehensive instructions. There you will always find answers to your questions.