Check out the details about W9 Tax Form 2024 What is a W9 tax Form Used For? – Complete guide from this article. Different details about W9 Tax Form 2024 What is a W9 tax Form Used For? – This article includes a complete guide and other significant details.
W9 Tax Form 2024
The W9 Tax Form is a tax form of the IRS that is used to obtain the correct TIN of an individual. The W9 Tax Form is usually requested by establishments that pay freelancers and independent contractors. The IRS provides the W9 Forms for employers to verify the information, such as names, addresses, and TIN numbers of the people receiving income.
Additionally, this important form can also be used to generate a 1099 tax form and other important forms. Independent contractors and freelancers who work with companies they are not employed by are often asked to provide a W9 form. The information collected by employers and businesses cannot be disclosed for other purposes, as they are under strict privacy regulations.
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W9 Tax Form Details
| Name | Form W9 |
| Type | Tax Form |
| Issued by | Internal Revenue Services |
| Country | United States |
| Backup withholding rate | 24% |
| Purpose | to provide the correct TIN, address, and name |
| Website | irs.gov |
What is a W9 tax Form Used For?
According to the IRS, the W9 Form can be used for providing the Taxpayer Identification Number to the individual who is required to file an Information Return. If the individuals fail to provide the completed W9 Form, they can face penalties and legal issues.
In addition, the employers/businesses can also withhold taxes from the individual’s pay if they fail to submit the W9 Form. The proper filing of this significant Tax Form ensures accurate tax reporting to the IRS. W9 Form is used in the following conditions –
- Real estate transactions.
- Contributions you made to an IRA.
- Income paid to you.
- Cancellation of debt.
- Mortgage interest you paid.
W9 Tax Form – Complete guide 2024
W9 Form has two main parts – Part I and Part II. The Part I is for Taxpayer Identification Number, and the Part II is for Certification. The W9 Tax Form comes with relevant information and instructions that help the individuals filling the Form. The TIN for individuals is usually the Social Security Number, whereas, for others, it might be an Employer identification number.
| Download Form | Form W9 |
The main purpose of the W9 Form is for Information Returns. These can be –
- Form 1099-INT
- Form 1099-DIV
- Form 1099-B
- Form 1099-S
- Form 1099-MISC
- Form 1098
- Form 1098-E
- Form 1098-T
- Form 1099-K
- Form 1099-C
- Form 1099-A
In addition, individuals can also develop their own forms if the content of their form substantially matches the official Form issued by the IRS and satisfies the required certifications. The instructions to develop and use the substitute W9 Form are available on the authorized web portal of the IRS.
W9 Tax Form Backup Withdrawing 2024
The Backup Withholding may be applicable in case the individuals do not return the W9 Form to the requester. In this case, the requesters (Employers/Businesses/etc.) are required to withhold and pay 24% of certain payments to the IRS. Previously, the backup withholding rate used to be 28%. However, public law 115-97 changed this rate.
Payment, including rents, broker and barter exchange transactions, interest, royalties, tax-exempt interest, etc., are subject to backup withdrawing. The complete list of payments that are subject to Backup Withdrawing can be checked by downloading the Form W9 instructions.
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How to Fill W9 Form 2024
To fill out the W9 Form, download it from the official website of the IRS. In addition, the requester may also provide the W9 Form to the individuals. Steps to fill the W9 Form 2024-
- In line 1, enter your correct name (as per your Income tax Return)
- In line 2, enter your Business name/disregarded entity name (if different from line 1)
- In line 3, check the appropriate box for federal tax classification purposes
- In line 4, enter – Exempt Payee Code (if any) and Exemption from FATCA reporting code (if any)
- In line 5, enter the Address
- In line 6, enter the City Name and Zip Code
- In line 7, list account numbers (its optional)
- In Part 1, enter your SSN or EIN.
- In Part 2, read the certification and sign with the date.
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