Form W-9 is an IRS document used to provide a taxpayer's identification number to entities that pay income, reportable on an information return, to the taxpayer. It is typically used by freelancers, independent contractors, and other self-employed individuals.
What is a Form W-9 used for?
IRS Form W-9 is used by businesses and other entities to collect the taxpayer identification number (TIN) of individuals or entities to whom they make payments.
The W-9 form is used to report income paid to freelancers, independent contractors, and other non-employees. Businesses use the information provided on Form W-9 to prepare various informational returns, such as Form 1099-MISC, which report the amount of income they paid to self-employed individuals to the IRS. This helps them comply with federal tax regulations and helps the Internal Revenue Service (IRS) track taxable income.
You may also be asked to complete a Form W-9 if you did any of the following in the last tax year:
- Had a real estate transaction.
- Acquired or abandoned a secured property.
- Paid mortgage interest.
- Paid student loan interest.
- Had debt canceled.
- Made contributions to an IRA.
The W-9 form isn’t sent to the IRS—the requestor (who may be a business, client, or financial institution) just uses the information on it for other tax purposes, like preparing different types of 1099 forms.
Who needs to collect and file a Form W-9?
- Businesses and payers: Any business or entity that makes payments to individuals or entities for services provided must collect a Form W-9 from the payee. This includes freelancers, independent contractors, consultants, and other self-employed individuals.
- Freelancers and independent contractors: Individuals who provide services to businesses on a non-employee basis must complete and submit a Form W-9 to the payer. This gives the payer the correct information to report all payments to the IRS.
Where do you get a Form W-9?
Form W-9 can be obtained directly from the IRS website. It is a free form that can be downloaded and printed.
Many businesses also provide a copy of Form W-9 to their independent contractors and freelancers as part of the onboarding process. Additionally, tax preparation software and services may include Form W-9 as part of their offerings.
How do you complete Form W-9?
Filling out Form W-9 is straightforward but requires accurate information to avoid issues with tax reporting. Here are the steps (but keep in mind that these are general instructions and may not apply to every taxpayer—contact the IRS if you have questions about how to fill out your specific tax forms):
Part I
- Enter your name. One Line 1, provide your full legal name as it appears on your tax return.
- Enter your business name, if applicable. On line 2, enter your business name or disregarded entity name.
- Indicate your federal tax classification. Check the appropriate box for your federal tax classification (e.g., Individual/Sole Proprietor, C Corporation, S Corporation, Limited Liability Company (LLC), Partnership, Trust/estate).
- Indicate any exemptions you qualify for. If you are exempt from backup withholding or FATCA reporting, indicate this in the exemptions box, along with the applicable exempt payee code.
- Enter your address. Enter your street address, city, state, and ZIP code.
- Enter your account number(s). If you have an account number associated with the earnings reported on this form, enter it here.
- Enter your Taxpayer Identification Number (TIN). This will be either your Social Security Number (SSN) or Employer Identification Number (EIN). Make sure you enter the correct TIN—the next step is certifying it.
Part II: Certification
Sign and date the form to certify, under penalties of perjury, that you’ve provided the correct taxpayer identification number and other information, you are not subject to backup withholding, and that you are either a US citizen or a US person, meaning that you live in the US. If you don’t live in the US (i.e. you’re a foreign individual, foreign entity, foreign partner, or nonresident alien), you’ll use Form W-8BEN or W-8BEN-E.
Form W-9 vs. Form W-4
Form W-9 is used primarily by freelancers, independent contractors, and other non-employees to provide their TIN to businesses that pay them. It is used for informational reporting purposes, such as preparing Form 1099-MISC.
Form W-4 is used by employees to provide their employer with the necessary information to calculate the correct amount of federal income tax to withhold from their wages. It is used for payroll withholding purposes.
Frequently asked questions about Form W-9
How do you fill out a Form W-9 if you’re a sole proprietor with an EIN?
If you have a sole proprietorship with an EIN, the IRS still advises you to use your Social Security Number (SSN) on your Form W-9 so it can match your form to your income tax returns.
How do you fill out a Form W-9 if you’re a newly established business entity without an EIN?
If you’ve recently established a business entity and haven’t received your EIN yet, the IRS advises you should apply for it as soon as possible and, in the meantime, write “applied for” on your W-9 form. You may be subject to backup withholding until you get your EIN.
How do you fill out a Form W-9 if you’re a resident alien?
If you live and work in the US but aren’t eligible to become a US citizen or apply for a Social Security Number (SSN), you can fill out Form W-9 using your IRS individual taxpayer identification number (ITIN) instead.
What is a “doing business as” (DBA) name?
If your business operates under any name other than the one it’s legally registered as, you’ve likely had to file a “doing business as,” or DBA, in your local city, county, or state. If you have a DBA, list it on Line 2 of your Form W-9.
Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.