W9 Form Printable Alaska – An Internal Revenue Service tax form called a W-9 is used to verify the name and address of an individual. It is possible to request confirmation for either an individual defined as a U.S. citizen or a person who is a resident or an alien. Also called the Request for Taxpayer Identification Number and Certificate form, a W-9 form can be requested.
What is Form W-9 used for?
The information gathered on the form W-9 is commonly used to make an equivalent of Form 1099. A 1099 form includes information regarding any income that could have been received from the TIN holder but would not normally be listed on a W-2 form. This includes, but is not limited to, income paid to a person through the terms of a contract; certain real estate transactions; dividends paid against an investment; and various other financial transactions.
Independent Contractor or Employee?
If you’re an employee your employer will withhold income taxes and withhold Social Security and Medicare taxes, and pay unemployment tax on your wages. It won’t if you are an independent contractor. That means your employer pays Social Security and Medicare taxes. If you’re dismissed, you won’t be eligible to receive unemployment compensation.
Do I have to fill out the Form W-9?
Certain. If you refuse in response to an legitimate request, your client may withhold tax from your wages at an amount of 24%.10 The department that handles accounting may consider you to be a hassle and tell the person you spoke to to not conduct business with you again. The IRS has a strict requirement for businesses to collect a completed form W-9 from each person who pays more than $600 per year. The IRS could impose fines on you for not complying with.
If you feel that the person requesting the form doesn’t have a legitimate reason for making the request, but, refusal is probably a good idea. If you’re concerned, talk to the tax expert to tell you what you need to do.
The Bottom Line
W-9 forms are for independent contractors, sometimes referred to as freelancers. It’s essential to complete the form correctly, but only when you’re certain it’s the proper form to be submitted and that your demand is genuine. W9 Form Printable Alaska