W-9 is a form used as a notification tool by mostly independent contractors and freelancers to inform the IRS about their earnings. The most important thing when it comes to filling out a W-9 is your annual income. You need to earn at least $600 a year to be qualified for filling out a W-9 Form.
W-9 is not a complicated form to be filled out but of course, nobody wants to wait for some additional time or fill out expansion forms after a slight mistake or misunderstanding. We prepared an instructions list for you to fill out your W-9 correctly and accurately:
- Taxpayer Name: This is where you should enter your name exactly seen on your tax return. Both names have to be compatible with each other.
- Business Name: Write down your business name and don’t use your own name here, this is so important
- Business Entity: You need to enter your business entity type. Your business entity is needed for federal tax classification. There are several empty little boxes in this part. You need to fill out the business entity box that suits you the most. If you’ve no idea what your business entity is, a sole proprietorship is more likely to be yours.
- Exemptions: You can leave these boxes empty. Freelancers and independent contractors are not expected to fill out these boxes.
- Address: Enter your business address here. Use the address shown in your tax return.
- Business Tax ID Number: Enter your business tax identification number, which happens to be your Social Security Number ( SSN ). If your business is another type which is not using social security number, then you should enter your Employer Identification Number ( EIN )
We suggest you not to think about any fraud actions on a W-9 form because you may face some unwanted events like jail time or money charges.