2020 W9 Tax Form

The title of Form W-9 is formally Request for Taxpayer Identification Number and Certification. Firms utilize this form to acquire the Taxpayer Identification Number (TIN) from licensed contractors, suppliers, and freelancers. The form furthermore provides other personally recognizing details like your name and address.

The form acts as an arrangement wherein you, as a licensed contractor or freelancer, are accountable for keeping taxes from your earnings. When you’re a full-time worker, your firm keeps some of your earnings to cover federal earnings taxes and FICA taxes (which consist of Medicare and Social Security taxes). Companies do not make through which withholding for licensed contractors.

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2020 W9 Tax Form

2020 W9 Tax Form

Their income taxes are not withheld, and contractors are entitled to pay for their Social Security taxes or Medicare. Whatever the case, the IRS needs to know the exact amount these contractors pocketed, to ensure they pay the taxes they deserve to. Businesses need not send anything to the IRS, not even the Form W-9

When is it best to Fill Out Form W-9.

The sudden arriving of a Form W-9 form for filling should be taken on seriously by an independent contractor. Form W-9 is sometimes also used by financial institutions in cases when they need to source information from a customer, to report dividends or interest.

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Next, if the business requesting your Form W-9 is your employer and categorizes you as an employee instead an independent contractor, then there’s a reason to worry. The difference is considerable.

Download 2020 W9 Tax Form

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