W-9 Form: What Is It, and How Do You Fill It Out?

Though similar sounding, they have very different purposes, recipients, and uses. In addition, the form may include a specific set of instructions provided by the IRS. The IRS requires those who are not defined as U.S. citizens or resident aliens to use the appropriate W-8 Form in place of a W-9 form. The information fedex w9 obtained on a W-9 form is most often used to create a version of Form 1099. A 1099 form contains information about any income that may have been received by the TIN holder that would not normally be listed on a W-2. If completing your W-9 as a business, use this line to provide the information.

You need to use it if you have earned over $600 in that year without being hired as an employee. If your employer sends you a W-9 instead of a W-4, the company has likely classified you as an independent contractor. You should confirm with the company that this is the case. Form W-9 is an IRS tax form that requests information for an individual defined as a U.S. citizen or a person defined as a resident alien. The information is used to fill out Form 1099 and is used for independent contractors, freelancers, or unrelated vendors, but not employees. However, a W-2 is only issued to employees of a company, not independent contractors or unrelated vendors.

Requester of Form W-9 – Introductory Material

This is an optional line where you can fill in any account numbers your employer may need. The form itself isn’t even an entire page long, excluding the instructions. The business that hires you should fill in its name https://www.bookstime.com/ and employer identification number (EIN). If you have already provided the requester an address and this is a new address write “new” at the top. Two commonly used forms for tax purposes are Form W-9 and Form W-4.

FATCA requires a participating foreign financial institution to report all U.S. account holders that are specified U.S. persons. Form W-9 has an Exemptions box on the front of the form that includes entry for the Exempt payee code (if any) and Exemption from FATCA Reporting Code (if any). The Form W-9 is used to prepare a range of various informational returns to the IRS.

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If the owner of a single member LLC is also a disregarded entity, provide the name of the first owner that isn’t a disregarded entity. In this optional step, you can provide the requester’s name and address. You might want to fill out this box to keep a record of to whom you provided your tax identification number. If you’re not sure what type of business entity you should select, the IRS has provided a summary table for guidance as part of the Form W-9’s instructions. Form W-9 is one of the most straightforward IRS forms to complete, but if tax forms make you nervous, don’t worry. Form 1099 is only required to be issued once the minimum income threshold is reached, which for most miscellaneous income is set at $600.

• Instead of filling out a Form W-9, new hires are often asked to fill out a W-4 to provide their taxpayer information to their employer.
• You send it to the employers who have requested it from you.
• If you’re not sure what type of business entity you should select, the IRS has provided a summary table for guidance as part of the Form W-9’s instructions.
• There are no guarantees that working with an adviser will yield positive returns.
• For these forms, the opposing party may request Form W-9 to ensure they have appropriate information on file.