By law, you are only obligated to provide a W-9 to parties that intend to pay you interest, dividends, non-employee compensation, or any other type of reportable income. If someone unexpected asks for a W-9, ask them why they need it.

Why do clients ask for W9?

What is a W9 Used For? If you work freelance or as an independent contractor, your clients may ask you to fill out a W9 form. They usually request these forms when they plan on submitting a 1099 MISC to the IRS for your wages. Clients usually issue a 1099-MISC whenever they pay a contractor more than $600.

What if someone refuses to give you a W9?

Failure to Provide W-9 – If a vendor or contractor refuses to provide a W-9 when its requested the Payee is subject to a penalty of $50 for each such failure.

Is it safe to give a W9?

The W-9 contains sensitive information that should be kept private and secure. Don’t send your completed W-9 as an unsecured or unencrypted email attachment. Instead use secure methods of transmission, such as hand delivery, mail, or encrypted file attachments to an email to the person who requested it.

What do you do when someone asks for a W9?

If someone’s asking you for a W-9, they need it to send you Form 1099, which you’ll need to report certain kinds of income to the IRS. It’s in both your interest to get these forms in as soon as possible. Although there’s no official deadline for filing W-9, you should fill it out as soon as you get one.

Who needs W9?

IRS Form W-9 is most commonly used by individuals when they are working as a freelancer or independent contractor. If you ever find yourself filling out a Form W-9, it generally means that a business or person who is paying you money needs your Social Security number so it can notify the IRS of the amount.

How much taxes will I pay on a W9?

If your income from a W-9 arrangement is subject to backup withholding, the current flat rate set by the IRS is 28%. So, to calculate how much you can expect to be withheld, simply multiply your W-9 income by 0.28.

What happens if I don’t get a W-9 from a vendor?

Vendor’s Responsibilities. It is the vendor’s responsibility to send the W-9 upon your request. If you do not receive a W-9 before the Feb. 28 filing deadline for 1099 forms, you can still file your 1099s with a notation that the vendor did not provide a tax identification number.

Do you need a W9 to work with Upwork?

Upwork acts as an escrow agent and passes funds from the client to the freelancer. That’s why we don’t believe a W-9 is necessary. Upwork provides 1099-Ks if appropriate to freelancers if certain conditions are met. More information is available here.

What happens if I don’t get a W-9 for a 1099?

If you do not receive a W-9 before the Feb. 28 filing deadline for 1099 forms, you can still file your 1099s with a notation that the vendor did not provide a tax identification number. You will not be penalized for the vendor’s failure to submit his information in a timely manner.