What do you need to know about the W9 tax form?
Learn about the purpose, use, and differences of W9 forms in the US tax system and why a missing or incorrect form can lead to financial issues.
Summary
The W9 tax form is used to verify taxpayer identification information for non-employees, helping businesses accurately report payments to the IRS.
A missing or incorrect W9 can trigger backup withholding, where 24% of payments are withheld for taxes.
The information provided on a W9 is used to prepare 1099 forms, which report income to both the taxpayer and the IRS.
A financial advisor can help you navigate complex tax forms and ensure you have a tax strategy that sees you take home more of your money.
What is a W9 form?
In the US, a W9 form is used to request a person's or business's taxpayer identification number (TIN). This information is used to report income paid to that individual or entity to the IRS. Independent contractors and other non-employee payees typically need to fill out a W9.
It’s worth noting that if a W9 is not provided or is filled out incorrectly, the payer may be required to withhold 24% of payments as backup withholding.
What is a W9 form used for?
The purpose of the W9 tax form is to collect the taxpayer identification number (TIN) and verify the identity of US persons or entities receiving payments for services.
Businesses need W9 forms for the following:
Accurate tax reporting
Tax law compliance
Avoiding backup withholding
What is a W9 vs a W4 form?
A W9 form is for non-employees such as independent contractors and freelancers. They fill it out to provide their TIN to the business paying them. This information is used to report their income to the IRS on a 1099 form.
A W-4 form is for employees. They use it to tell their employer how much federal income tax to withhold from their paycheck. This information is based on their personal situation, like filing status and number of dependents.
How do I get a W9 form?
You can obtain a W9 form through a few simple methods, both digitally and physically:
Digital:
IRS website: The most direct and reliable source is the IRS website, where you can download the latest version of the W9 form 2024 as a PDF.
Physical:
IRS office: Visit your local IRS office.
Libraries: Some public libraries may hold copies.
Tax professionals: Accountants or tax preparers also offer copies.
Can I fill out the W9 form online?
Yes, you can fill out the W9 form online.
While the IRS itself doesn't provide an online fillable version of the W9, many third-party websites and software applications offer this service, and they generally include comprehensive W9 form instructions.
How to send a W9 form?
W9 tax forms are not sent to the IRS.
Instead, these forms are sent to the person or entity requesting your taxpayer information. This could be a client, employer, financial institution, or any other entity.
Blank or Pre-filled forms
The W9 form is typically sent blank to the individual who needs to fill it out.
Sending Physical Copies
Mail: The most common way to send a physical W9 form is through regular mail.
In-person delivery: If you work closely with the requester, you may be able to deliver the form in person.
Sending Digital Copies
Email: You can scan the completed and signed W9 tax form and send it as an email attachment.
Secure file sharing: If the requester uses a secure file-sharing platform, you can upload the form there.
Online portals: Some companies or institutions provide online portals.
How do I fill out the W9 form?
The following steps will show you how to fill out the W9 form:
Part I - Taxpayer Identification Number (TIN):
Enter your full legal name.
Enter your business name (if different).
Check the box for your federal tax classification.
If exempt from backup withholding, check the box and enter the code.
Enter your mailing address.
Part II - Certification:
Enter your SSN or EIN.
Sign and date the form.
Required Information:
Full legal name
Business name (if applicable)
Federal tax classification
Exemption from backup withholding (if applicable)
Mailing address
SSN or EIN
Signature and date
When are the W9 forms due?
Ideally, a W9 form should be submitted before receiving the first payment for services or other income.
However, for tax reporting purposes, it's crucial to submit a completed W9 by the end of the calendar year. If your information changes, you need to notify the payer and provide an updated W9 form.
Do W9 forms expire?
Generally, completed W9 forms do not expire as long as the information remains accurate.
However, a new form is needed if any information changes or if the payer requests one.
Get expert financial advice
W9 forms are used to request a person's or business's taxpayer identification number so that a person making a payment may report the income paid to the IRS. Failure to provide a form can result in the payer withholding 24% of payments.
Let Unbiased match you with an expert financial advisor for expert financial advice on taxes, tax liability, and other financial decisions.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.