Filling Out a W-9 Form Demystified – Plus 15 Fab Finds for Boss Babes Building Their Empire!
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Hey there, savvy trendsetter! Are you jumping into the exciting new world of side hustles or starting your own small business? Maybe you are hustling hard and need to hire some contractors to help you out, but hold up – what’s this about a W-9 form? It’s like the golden ticket in the freelance jungle. As a business owner, it’s important to be aware of the consequences of failing to provide W-9s to your contractors or missing the deadline to send them their earning statements — it could mean hefty fines from the IRS!
So, if you are new to the W-9 form and you’re feeling lost like a penguin in the desert, the guidelines in this article should help you get moving in the right direction.
Did You Know? $3,000
Many taxpayers anticipate receiving a tax refund. According to the IRS, in the 2023 tax season, the average federal income tax refund was approximately $3,000.
7 Common questions about the W-9 Form
What's a W-9 form and why do I need it?
A W-9 form is like a info sheet for people who work for themselves, like freelancers or contractors. It asks for stuff like your name, address, and tax ID number. Businesses need this info to report what they pay you to the IRS for taxes.
Do I have to fill out a W-9 form?
Yep, if you’re working for yourself and expect to get $600 or more from a business in a year, you’ll need to fill one out. It’s how that business keeps track of who they’re paying and how much.
Is a W-9 the same as a W-4?
Nope. A W-4 is what employees fill out to tell their boss how much tax to take out of their paycheck. But a W-9 is for freelancers or independent contractors and is used to give their tax info to the businesses they work with.
What if I don't fill out a W-9 form?
If you don’t give a business your W-9 when they ask for it, they might have trouble paying you. Plus, it’s important for them to report payments to the IRS accurately, so not filling it out could cause some issues (like penalties or fines).
Where do I get a W-9 form?
You can grab one from the IRS website, or your client might give you one to fill out. Sometimes they’ll send it to you electronically if you’re working online.
Do I have to fill out a W-9 by a certain time?
There’s no exact deadline, but it’s best to do it as soon as you start working for a new client. This way, there won’t be any delays in getting paid, and everyone’s taxes stay on track.
If I'm a freelancer and provide a W-9 to a client, do I need to pay my own taxes to the IRS?
If you earn more than $600 in a year then yes, you will have to pay your own taxes to the IRS. Providing a W-9 form to your client as a freelancer helps them report the payments they make to you to the IRS. However, you’re responsible for paying your own taxes directly to the IRS by estimating your tax liability, based on your current tax bracket, and setting aside a portion of your income for taxes, and filing your tax returns annually.
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Keep in mind, entrepreneurial friends, in this side gig economy accurate W-9s are a necessary business document to ensure business dealings go smoothly. Once you have completed the necessary information on the W-9 form, you should sign and date it. By signing the form, you certify that the information you provided is correct. Not only does this help streamline your processes but also safeguards you from potential legal woes.
This article was human crafted, edited & researched using the assistance of AI and is for information & entertainment purposes only. This article should not be construed as advice and is provided without warranty of any kind.
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