W9 Form Printable Delaware – A W-9 form is an Internal Revenue Service (IRS) tax form which is used to verify the identity of a person’s address, name as well as taxpayer identification number (TIN) in order to prove jobs or other reasons that generate income. A confirmation request can be made to either a U.S. citizen, or an citizen of another country. Also called the Request for Taxpayer ID Number and Certificate form, the W-9 form can be requested.
What Is Form W-9 Used For?
Most often, the W-9 information is used to create Form 1099. The 1099 form includes information about income received from the TIN holder that isn’t typically reported on the W-2. This can include, but is not restricted to, income paid to a person as part of an agreement and certain real estate transactions or dividends on an investment; and various other financial transactions.
Independent Contractor or Employee?
If you’re an employee your employer is required to withhold income tax and withhold Social Security and Medicare taxes and also pay unemployment tax on your wages. This isn’t the case if you’re an independent contractor. That means your employer will pay Social Security and Medicare taxes. If you are dismissed, you won’t be eligible for unemployment compensation.
Do I have to fill out Form W-9?
Certain. If you do not respond to an legitimate request, your client may withhold tax from your pay at an amount of 24%.10 The department that handles accounting may also find you a pain and tell your contact not to do further business with you. The IRS is obligated for businesses to collect the W-9 form completed from any person they pay $600 or more during the year. There could be fines for not complying with.
If you believe the person who requested the form doesn’t have a legitimate reason for asking for it, though refusing is likely to be a good idea. If you’re worried, you can ask an expert tax advisor what you should do.
The Bottom Line
W-9 forms are designed for independent contractors, also called freelancers. It is essential to fill out the form correctly–but only if you’re certain it’s the proper form to be submitted and that your demand is genuine. W9 Form Printable Delaware