The Complete Guide to IRS.gov/FormW9: Instructions and Latest Information
If you’re a freelancer or self-employed individual in the United States, chances are you will need to fill out IRS Form W-9 at some point. This form is used to request your taxpayer identification number and other information needed for tax purposes when you’re working with clients who pay you more than $600 during the year.
In this complete guide to IRS.gov/FormW9, we’ll go over the instructions and latest information you need to know.
What is IRS.gov/FormW9?
IRS Form W-9, officially titled “Request for Taxpayer Identification Number and Certification,” is a tax form used by businesses to request taxpayer identification information from independent contractors, freelancers, and anyone else who is not an employee.
Why is IRS.gov/FormW9 important?
If you work as an independent contractor, you’ll need to fill out IRS Form W-9 to provide your taxpayer identification number to clients who pay you more than $600 during the year. This information is used to report your income to the IRS, and is necessary for your clients to comply with tax laws. If you don’t provide a completed W-9, your clients may be required to withhold taxes from your payments at a higher rate.
How to fill out IRS.gov/FormW9?
IRS Form W-9 is a short, one-page form that requires your name, address, taxpayer identification number, and a certification of your tax status. The form can be filled out electronically or by hand.
First, provide your name and business name, if applicable, in the “Name” field. Next, provide your taxpayer identification number, which can be your Social Security number or an employer identification number. Then, provide your address, including city, state, and ZIP code.
The last section of the form requires you to certify your tax status. You’ll need to indicate whether you’re subject to backup withholding or if you’re exempt from it. Generally, you’ll be exempt from backup withholding if you’re a U.S. citizen or resident alien with a valid tax identification number and you haven’t been notified by the IRS that you’re subject to backup withholding.
What you need to know about the latest IRS.gov/FormW9 updates
The IRS updated Form W-9 in 2018, so make sure you’re using the most recent version of the form. The most significant change is that you can now use an “apostille” or “certification” instead of a U.S. address to verify your foreign status for tax purposes.
Additionally, the IRS recently issued guidance related to the information you need to provide on Form W-9 if you’re being paid by a foreign financial institution or participating in a foreign financial account. If you’re in this situation, you’ll need to provide additional information, including identifying any foreign financial institution accounts you have and reporting any applicable tax obligations.
Conclusion
IRS Form W-9 is a crucial tax form that must be completed by independent contractors and freelancers in the United States. By following the instructions provided on IRS.gov/FormW9, you can ensure that you’re providing the correct taxpayer identification information to your clients and avoiding any potential tax issues. Remember to stay up to date on any changes or updates to the form to ensure that you’re always in compliance with IRS regulations.
