How to Fill Out a W-9 Form for 2024

If you are a freelancer, contractor, or vendor who provides services to a business or an individual, you may be asked to fill out a W-9 form. A W-9 form is a request for your taxpayer identification number and certification, which is used by the payer to report your income to the IRS. Filling out a W-9 form is not difficult, but it is important to do it correctly and on time to avoid any tax issues. In this article, we will explain what a W-9 form is, why you need it, and how to fill it out step by step.

What is a W-9 Form and Why Do You Need It?

A W-9 form is an official document issued by the IRS that requests your name, address, and taxpayer identification number (TIN). A TIN can be your Social Security Number (SSN), Employer Identification Number (EIN), or Individual Taxpayer Identification Number (ITIN). The purpose of the W-9 form is to verify your identity and tax status, and to allow the payer to report your income to the IRS using a 1099 form. A 1099 form is a statement of the payments you received for your services during the year, which you need to include in your tax return.

You may need to fill out a W-9 form if you are:

• A self-employed individual, such as a freelancer, contractor, or consultant, who provides services to a business or an individual
• A sole proprietor or a single-member LLC who operates under your own name or a trade name
• A partner in a partnership or a member of a multi-member LLC who receives payments for your share of the profits
• A recipient of interest, dividends, royalties, rents, or other income from a business or an individual
• A seller of real estate or other property who receives proceeds from the sale

You do not need to fill out a W-9 form if you are:

• An employee of a business or an individual who receives wages or salaries
• A tax-exempt organization, such as a charity or a nonprofit, who receives donations or grants
• A foreign person or entity who is not subject to U.S. tax laws
• A recipient of payments that are below the IRS reporting threshold, which is usually $600 per year

Part 1: Identifying Information

The first part of the W-9 form asks for your identifying information, such as your name, business name, and address. Here is how to fill out this part:

• Line 1: Enter your name as it appears on your income tax return. If you are a sole proprietor or a single-member LLC, enter your own name. If you are a partner in a partnership or a member of a multi-member LLC, enter the name of the partnership or the LLC.
• Line 2: Enter your business name, trade name, or DBA (doing business as) name, if different from your name on line 1. If you do not have a separate business name, leave this line blank.
• Line 3: Check the appropriate box for your federal tax classification. If you are a sole proprietor or a single-member LLC, check the box for “Individual/sole proprietor or single-member LLC”. If you are a partner in a partnership or a member of a multi-member LLC, check the box for “Partnership” or “Limited liability company” and enter the tax classification of the LLC (C, S, or P) on the line next to it. If you are a corporation, an S corporation, a trust, or an estate, check the corresponding box and enter the tax classification if applicable. If you are not sure about your tax classification, consult a tax professional or the IRS website.
• Line 4: Enter your exemption codes, if any. Exemption codes are used to indicate that you are exempt from backup withholding or FATCA reporting, which are special tax rules that apply to certain types of payments. Backup withholding is a process where the payer deducts a certain percentage of your payment and sends it to the IRS as a tax payment on your behalf. FATCA reporting is a requirement for foreign financial institutions and certain other entities to report information about their U.S. account holders to the IRS. If you are not exempt from backup withholding or FATCA reporting, leave this line blank. If you are exempt, enter the appropriate code from the instructions on the back of the form. For example, if you are a corporation that is exempt from backup withholding, enter “4” on line 4.
• Line 5: Enter your address, including the street number and name, apartment or suite number, city, state, and ZIP code. This is the address where the payer will send you the 1099 form and other correspondence. If you have a different mailing address, enter it on line 6.
• Line 6: Enter your mailing address, if different from your address on line 5. This is the address where you want the IRS to send you notices and refunds. If you have the same address as on line 5, leave this line blank.

Part 2: Taxpayer Identification Number (TIN)

The second part of the W-9 form asks for your taxpayer identification number (TIN), which is a unique number that the IRS uses to identify you and track your tax records. Your TIN can be one of the following:

• Social Security Number (SSN): A nine-digit number that is issued to U.S. citizens, permanent residents, and certain temporary residents by the Social Security Administration. You can find your SSN on your Social Security card, your tax return, or your pay stub. If you do not have an SSN, you can apply for one using Form SS-5, which is available on the SSA website or at any local SSA office.
• Employer Identification Number (EIN): A nine-digit number that is issued to businesses and other entities by the IRS. You can find your EIN on your tax return, your business license, or your bank statement. If you do not have an EIN, you can apply for one using Form SS-4, which is available on the IRS website or by calling 1-800-829-4933.
• Individual Taxpayer Identification Number (ITIN): A nine-digit number that is issued to individuals who are not eligible for an SSN but need to file a tax return or claim a tax benefit. You can find your ITIN on your tax return or your ITIN letter. If you do not have an ITIN, you can apply for one using Form W-7, which is available on the IRS website or at any IRS office.

Here is how to fill out this part:

• If you are an individual, enter your SSN or ITIN in the box labeled “Social security number”. Do not enter dashes or spaces between the digits. For example, if your SSN is 123-45-6789, enter it as 123456789.
• If you are a business or an entity, enter your EIN in the box labeled “Employer identification number”. Do not enter dashes or spaces between the digits. For example, if your EIN is 12-3456789, enter it as 123456789.
• If you do not have a TIN, check the box labeled “Awaiting TIN” and explain why you do not have a TIN on the space below. For example, you can write “Applied for SSN on 01/01/2024” or “Applied for EIN on 01/01/2024”. You must obtain a TIN as soon as possible and provide it to the requester.

Part 3: Certification

The third part of the W-9 form is the certification, which is a statement that you sign and date to confirm the accuracy of the information you provided on the form. By signing the certification, you are also agreeing to the following:

• You are not subject to backup withholding, or you are exempt from backup withholding, or you have notified the payer that you are subject to backup withholding. Backup withholding is a process where the payer deducts a certain percentage of your payment and sends it to the IRS as a tax payment on your behalf. You may be subject to backup withholding if you have not provided your TIN to the payer, or if the IRS has notified you that you have failed to report all your income or pay all your taxes. You can avoid backup withholding by providing your correct TIN to the payer and reporting all your income and paying all your taxes on time. If you are subject to backup withholding, you must notify
  

  the payer that you are subject to backup withholding by checking the box labeled “I certify that I am subject to backup withholding” on the certification.

  • You are a U.S. person, or a U.S. resident alien, or a U.S. entity. A U.S. person is a U.S. citizen, a U.S. national, or a U.S. resident alien. A U.S. resident alien is a foreign person who meets the substantial presence test or the green card test for U.S. tax purposes. A U.S. entity is a corporation, a partnership, a trust, or an estate that is created or organized in the U.S. or under U.S. law. If you are not a U.S. person, or a U.S. resident alien, or a U.S. entity, you should not use the W-9 form, but instead use the appropriate W-8 form, which is used to certify your foreign status and claim tax treaty benefits, if applicable.
  • You are not a FATCA reporting entity, or you are exempt from FATCA reporting, or you have notified the payer that you are a FATCA reporting entity. FATCA reporting is a requirement for foreign financial institutions and certain other entities to report information about their U.S. account holders to the IRS. You may be a FATCA reporting entity if you are a foreign entity that holds financial assets for the benefit of others, or a foreign entity that is part of a larger group that includes a foreign financial institution. If you are a FATCA reporting entity, you must notify the payer by checking the box labeled “I certify that I am a FATCA reporting entity” on the certification.

  Here is how to fill out this part:

  • Read the certification carefully and make sure you understand and agree with it.
  • Sign your name on the line labeled “Signature of U.S. person”. Use your legal name, not your business name or trade name. If you are signing on behalf of a business or an entity, enter your title or capacity on the line next to your signature, such as “Owner”, “Partner”, “Manager”, or “Trustee”.
  • Enter the date on the line labeled “Date”. Use the format MM/DD/YYYY. For example, if the date is January 12, 2024, enter it as 01/12/2024.
  • Do not sign the form if it is incomplete, incorrect, or false. Doing so may result in penalties or criminal prosecution by the IRS.

  Part 4: How to Submit the Form

  The fourth part of the W-9 form is not a part that you need to fill out, but a part that tells you how to submit the form to the requester. The requester is the person or the entity that asked you to fill out the form, such as your client, your customer, your landlord, or your broker. Here is how to submit the form:

  • Send the completed and signed form to the requester by the deadline they specified. You can send the form by mail, email, fax, or any other method that the requester accepts. Do not send the form to the IRS, unless the IRS specifically requests it from you.
  • Keep a copy of the form for your own records. You may need to refer to it when you file your tax return or if you receive a notice from the IRS.
  • Update the form if any of your information changes, such as your name, address, or TIN. Send the updated form to the requester as soon as possible.

  Part 5: Common Mistakes to Avoid

  The fifth part of the W-9 form is not a part that you need to fill out, but a part that warns you about some common mistakes that people make when filling out the form. These mistakes can result in errors, delays, or penalties, so it is important to avoid them. Here are some common mistakes to avoid:

  • Do not use an old or outdated version of the form. Always use the most recent version of the form, which you can find on the IRS website or from the requester. The current version of the form is dated October 2018.
  • Do not leave any fields blank, unless instructed to do so. If a field does not apply to you, enter “N/A” or “Not applicable” instead of leaving it blank. For example, if you do not have a business name, enter “N/A” on line 2.
  • Do not enter incorrect or incomplete information. Make sure you enter your name, address, and TIN exactly as they appear on your tax records. If you are not sure about your information, check your tax return, your tax documents, or your online IRS account. If you find any errors or discrepancies, correct them with the IRS before filling out the form.
  • Do not forget to sign and date the form. A W-9 form without a signature and a date is invalid and will be rejected by the requester. Make sure you sign and date the form in ink, not in pencil or electronically, unless the requester allows it.
  • Do not provide false or fraudulent information. If you provide false or fraudulent information on the form, such as a fake name, a fake TIN, or a false certification, you may be subject to civil or criminal penalties by the IRS, such as fines, interest, or imprisonment. You may also be liable for any taxes, interest, or penalties that result from the false or fraudulent information.

  Conclusion

  A W-9 form is a request for your taxpayer identification number and certification, which is used by the payer to report your income to the IRS. Filling out a W-9 form is not difficult, but it is important to do it correctly and on time to avoid any tax issues. In this article, we explained what a W-9 form is, why you need it, and how to fill it out step by step. We also provided some tips on how to avoid common mistakes and errors when filling out the form. We hope this article helped you understand how to fill out a W-9 form for 2024.

  If you have any questions or concerns about the W-9 form, you can contact the requester who asked you to fill out the form, or consult a tax professional or the IRS website. You can also check out the following FAQs for more information.

  FAQs

  Q: How do I get a W-9 form?

  A: You can get a W-9 form from the requester who asked you to fill out the form, or you can download it from the IRS website at https://www.irs.gov/pub/irs-pdf/fw9.pdf. You can also request a paper copy of the form by calling 1-800-829-3676.

  Q: How long does it take to fill out a W-9 form?

  A: It does not take long to fill out a W-9 form, as it only has four parts that you need to fill out. Depending on your situation, it may take you anywhere from a few minutes to a few hours to complete the form. However, you should not rush the process, as you need to make sure you provide accurate and complete information on the form.

  Q: How often do I need to fill out a W-9 form?

  A: You need to fill out a W-9 form whenever a requester asks you to do so, which may vary depending on the type and frequency of the payments you receive. Generally, you need to fill out a W-9 form once for each requester, unless your information changes, such as your name, address, or TIN. In that case, you need to fill out a new W-9 form and send it to the requester as soon as possible.

  Q: Do I need to pay taxes on the income I report on the W-9 form?

  A: Yes, you need to pay taxes on the income you report on the W-9 form, as it is part of your taxable income for the year. You need to include the income you receive from the requester on your tax return, and pay the appropriate taxes, such as income tax, self-employment tax, or estimated tax. You may also be eligible for certain deductions or credits that can reduce your tax liability, depending on your situation. You can use the IRS website or a tax software to help you prepare your tax return, or you can hire a tax professional to do it for you.

  Q: What if I make a mistake on the W-9 form?

  A: If you make a mistake on the W-9 form, such as entering the wrong name, address, or TIN, you need to correct it as soon as possible. You can do so by filling out a new W-9 form with the correct information, and sending it to the requester. You should also notify the IRS of the change by calling 1-800-829-1040 or by using the online IRS account. If you do not correct the mistake, you may face delays, errors, or penalties on your tax return or your 1099 form.