W9 Form Nebraska 2022 – A W-9 form is an Internal Revenue Service (IRS) tax form used to confirm a person’s name, address, and taxpayer identification number (TIN) to be used for reasons of employment or for other income-generating activities. It is possible to request confirmation for either an individual defined as an U.S. citizen or a one who is considered to be a resident in the United States or as an alien. Also known as the Request for Taxpayer Identification Number and Certificate Form, the W-9 can be requested.
What’s Form W-9 Useful For?
The information obtained on the W-9 form is frequently used to create an alternative version of Form 1099. A 1099 form includes information about any income that may have been received from the TIN holder but would not normally be listed on a W-2 form. This could include income earned as part of a contract, certain real estate transactions, dividends paid against investments, and various other financial transactions.
Independent Contractor or Employee?
If you’re an employee your employer will withhold tax on income and withhold Social Security and Medicare taxes as well as pay unemployment taxes on your wages. If you’re an independent contractor, it won’t. You’ll be responsible for the employer’s portion of Social Security and Medicare taxes as well as not be eligible for unemployment insurance when you’re laid off.
Can I choose not to fill out Form W-9?
Yes. If you do not respond to a legitimate request your client may withhold tax from your pay at a rate of 24%.10 The accounting department might also find you a pain and notify your contact to not do further business with you. Businesses are under a strict obligation from the IRS to request a completed Form W-9 from anyone they pay more than $600 to throughout the year. The IRS could impose fines on you in the event of not complying.
If you believe you know that the person asking for the form doesn’t have a legitimate reason for soliciting it, even it is possible to refuse, then refusing is a good idea. If you’re worried, you can ask a tax professional what you should do.
The Bottom Line
W-9 forms are for independent contractors, also known as freelancers. It’s crucial to fill in the form correctly–but only if you’re certain it’s the proper form to submit and the request is legit. W9 Form Nebraska 2022