What is Form W-9?
Independent contractors, freelancers, and self-employed individuals use Form W-9, officially titled “Request for Taxpayer Identification Number and Certification,” to provide their Taxpayer Identification Number (TIN) to businesses or entities that pay them. This form verifies the payee’s tax status and includes essential details such as their name, address, and either a Social Security Number (SSN) or Employer Identification Number (EIN).
Businesses use Form W-9 to prepare Form 1099-NEC or 1099-MISC, which report non-employee compensation to the IRS. Sometimes referred to as a taxpayer information form or TIN verification form, it is a crucial document for ensuring proper tax reporting and compliance. Many professionals prefer to create a W9 online to streamline the process and reduce errors.
Why Do You Need to Use Form W-9?
If you are a freelancer, independent contractor, gig worker, or self-employed professional, a client or business that pays you may ask you to complete Form W-9. This form allows them to collect your Taxpayer Identification Number (TIN)—either a Social Security Number (SSN) or Employer Identification Number (EIN)—to accurately report payments made to you.
Businesses use this information to file Form 1099-NEC or 1099-MISC, which reports non-employee compensation to the IRS. Without a completed W-9, your client may have to withhold backup taxes from your payments at a rate of 24%.
Typically, the hiring company will provide you with a blank W-9 form, which you must fill out and return before receiving payment. Many contractors prefer to create W9 forms digitally to ensure accuracy and speed up the submission process. Keeping this process timely ensures smooth tax reporting and prevents potential issues with IRS compliance.
When Do You Need to Use Form W-9?
You need to use Form W-9 in several situations, primarily when working as an independent contractor, freelancer, or self-employed individual receiving payments from a business. Businesses typically require the form in the following scenarios:
- Non-Employee Compensation – If a business or client pays you $600 or more in a tax year for services rendered, they will request a W-9 to report the payment to the IRS using Form 1099-NEC or 1099-MISC.
- Opening a Financial Account – Banks, investment firms, and other financial institutions may require a W-9 to verify your Taxpayer Identification Number (TIN) before opening an account.
- Real Estate Transactions – If you receive rental income, sell property, or participate in other real estate dealings, you may need a W-9 for tax reporting purposes.
- Debt Cancellation or Settlement – If a lender forgives or cancels a portion of your debt, they may request a W-9 to issue a Form 1099-C (Cancellation of Debt) to report the forgiven amount as taxable income.
- Other Business Transactions – Some companies request a W-9 when making payments that require IRS reporting, such as dividend or interest payments.
In general, if a business or institution needs to report payments made to you for tax purposes, they will request a W-9 form to obtain your TIN, SSN, or EIN. Many businesses and contractors now choose to create W9 online for ease of completion and secure storage.
Are there any deadlines or times for when this form is needed?
The IRS does not set an official deadline for submitting Form W-9, but businesses usually require it before issuing payments to independent contractors or freelancers. If you don’t provide a completed W-9 on time, the payer may have to withhold 24% backup taxes from your earnings.
To avoid delays or withholding, submit the form as soon as a client requests it. A W-9 generator can help you fill out all required information accurately before submission.
What are the Main Things That Go On This form?
When filling out Form W-9, you’ll need to provide the following details:
1) Your Name – Must match your tax records.
2) Business Name (if applicable) – If you’re operating under a business entity or DBA.
3) Federal Tax Classification – Select your tax status (e.g., Individual, Sole Proprietor, LLC, S-Corp).
4) Taxpayer Identification Number (TIN) – This can be your Social Security Number (SSN) or Employer Identification Number (EIN).
5) Exemptions (if applicable) – Certain businesses and entities may be exempt from backup withholding.
6) Address – Your mailing address for tax records.
7) Certification Signature – You must sign and date the form to certify the accuracy of the information provided.
*You don’t submit this form to the IRS; instead, you give it to the business or client requesting it. If you prefer a more efficient way to complete the form, using a W9 creator can simplify the process.*
What are the Most Common Mistakes to Avoid?
Filling out Form W-9 incorrectly can lead to payment delays, tax issues, or even IRS penalties. Here are the most common mistakes to avoid:
Providing the Wrong Taxpayer Identification Number (TIN)
— Your SSN or EIN must be correct and match IRS records to avoid processing issues.
Using a Different Name Than on Tax Records
— The name you enter must match the IRS records, especially for businesses.
Selecting the Wrong Tax Classification
— Choose the correct entity type (e.g., Individual/Sole Proprietor, LLC, S-Corp, or Partnership) to prevent misclassification.
Leaving the Form Incomplete
— Missing key details like your TIN, tax classification, or signature can make the form invalid.
Failing to Sign the Form
— An unsigned form is not legally valid and may cause delays in payments.
Ignoring Backup Withholding Status
— If you’ve been notified that you’re subject to backup withholding, you must indicate this on the form to avoid IRS penalties.
Using an Incorrect EIN for a Sole Proprietorship
— If you’re a sole proprietor, you usually need to provide your SSN instead of an EIN unless you’ve registered an official business entity.
To prevent these issues, many professionals use a W9 form generator to complete the form correctly.
Do I need to use a lawyer, accountant or notary to help me?
No, hiring a lawyer, accountant, or notary is not necessary to complete Form W-9. The form is straightforward, and you can fill it out online in just a few minutes. Using an online form generator or tax software can help guide you through the process and ensure accuracy—saving you time and money compared to hiring a professional. FormPros offers step-by-step assistance to answer common questions and help you complete the form correctly.
Why use our W-9 Form Generator?
Filling out Form W-9 manually can be time-consuming and prone to errors. Our W-9 generator simplifies the process, ensuring accuracy while saving you time and money.
With our online tool:
- No Software Installation Required – Access it instantly from any device without downloads.
- Step-by-Step Guidance – Our intuitive system walks you through each section, minimizing mistakes.
- Error-Free Formatting – Avoid common errors that could delay payments or lead to IRS issues.
- Instant Download & Printing – Get your completed W-9 immediately in a professional format.
- Secure & Private – Your personal and tax information is protected throughout the process.
Using FormPros takes the guesswork out of completing your W-9, making it the fastest and most reliable way to create a W9 online hassle-free.
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Create Form W-9 Online FAQs
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How are W-9 and 1099 forms different?
A W-9 is used to request the taxpayer tax identification number (TIN) of a US person, and to certify that the number is correct. A 1099 form is used to report taxable income for individuals that are not directly employed by the business entity or individual making the payment. Independent contractors are issued a 1099 for payments from clients, and a 1099 is also used to report royalties, prizes, and award winnings.
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How do a W-2 and a W-9 differ?
Form W-9 is used to request Tax Id Number (TIN) of a US person. A W-2, on the other hand, reports annual wages paid to an employee, and the federal and state taxes withheld from the wages.
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Where do I get a W-9?
In many instances, your employer or client (if you’re a contractor) will send a W-9 to you. You can also download a W-9 from the IRS website. FormPros allows you to complete a W-9 electronically.
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How do I fill out a W-9?
On lines 1 and 2, you enter either your name or your company’s name. If you’re filing a W-9 for your company, verify your firm’s business structure (C corporation, LLC, etc.) and complete line 3. Your address is posted to lines 5 and 6. Your signature certifies that the information you provide is correct.
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What is a United States activity?
A “person” must complete a W-9, and the IRS considers a person to be a US citizen, or US resident alien. Business entities formed in the US are persons, along with estates and trusts formed in the US. These businesses, estates, and trusts are considered United States activities.
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Why is a W-9 needed for life insurance death claims?
Anyone receiving payment for a life insurance death claim must complete a W-9 form. This includes beneficiaries, a trustee, an administrator of an estate, or the guardian of a minor. The W-9 documents the tax identification number of the party who receives a payment.
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What is an exempt payee on a W-9?
Backup withholding means that persons making certain payments to you must, under certain conditions, withhold and pay 24% of such payments to the IRS. Payments that may be subject to backup withholding include interest, tax-exempt interest, dividends, and non-employee pay. If you provide your tax identification number, amounts will not be withheld from your payments. Federal and state governments, along with other entities, are exempt payees that are not subject to backup withholding amounts.
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How does a W-9 help the payee avoid backup withholding?
If you provide your tax identification number, amounts will not be withheld from your payments, and you can avoid backup withholding requirements.
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Can I complete a W-9 electronically?
FormPros offers a W-9 generator that allows you to can create unlimited W-9 forms at a low cost.
