W9 Form Texas 2022

W9 Form Texas 2022The W-9 form is an Internal Revenue Service (IRS) tax form that is used to verify the name, address and taxpayer identification number (TIN) for work or other income-generating reasons. 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 of another country. The form W-9 is also known as A Request for Taxpayer Identification Number and the Certification form.

W9 Form 2022 Fillable Editable Printable

What is Form W-9 used to do?

Most often, the W-9 information is used to create Form 1099. A 1099 form includes information on any income that might be received by the TIN holder , which would not normally be listed on a W-2 form. This could include income earned as part of a contract, real estate transactions, dividends paid against investments, and various other financial transactions.

Independent Contractor or Employee?

Employers withhold taxes on income and also withhold Social Security, Medicare, and unemployment taxes to employees. However, this won’t be the case if your are an independent contractor. That means your employer will pay Social Security and Medicare taxes. If you are laid off, then you won’t be eligible to receive unemployment compensation.

Can I refuse to complete Form W-9?

Sure. If you do not respond to a legitimate request your client could withhold taxes from your pay at a rate of 24%.10 The department that handles accounting might also consider you a hassle and inform your contact to not conduct business with you again. The IRS has a mandatory obligation for companies to obtain the W-9 form completed from each person who pays more than $600 per year. The IRS could impose fines on you for not complying with.

If you believe that the person who is requesting the form isn’t legitimately soliciting it, even it is possible to refuse, then refusing is an ideal choice. Ask a tax professional if there are any questions.

The Bottom Line

Forms W-9 are used for independent contractors, also called freelancers. It’s essential to complete the form correctly, but only when you’re confident that this is the correct form to be submitted and that your form is legitimate. W9 Form Texas 2022