what is a W-9 form?

Question

My friend got one for savings she can get when she is 18 and I told her it's so the government can't take taxes from it. Is this right if not tell me what it is and how it works thanks.

Answer 1

A W-9 is a taxpayer identification number. Any corporation/business/bank is required to collect this information for persons to whom they pay monies.

Your friend must have gotten this because the savings bond that matures when she she turns 18. This bond has been earning interest and the bank is required to report interest paid on their corporate taxes.

It is nothing more than a means of identifying her with the IRS.

She needs to fill it out and return it to the financial institution that sent it to her.

Answer 2

If it's the same W-9 form we use, I give it to our sub contractors so we can give them a Form 1099 at the end of the year with the money we've paid them for the year, so they can file their taxes. A copy goes to the contractor and also to the IRS. It gives me their name, business name (if they have one), and social security number or business ID so the government can track that they claim on their taxes the same amount that I claim to have paid them during the year. The bank will probably give her a 1099 on the interest she earns from her savings account and she would have to pay taxes on that. Not all of the money in the account, only the interest, which if it's a regular savings account, she probably won't make enough money to have to pay taxes on it anyway.
It's not a tax exemption form it's a form for taxes.

Answer 3

It tells the bank about one's status: to avoid backup withholding.
http://www.irs.gov/instructions/iw9/index.html

Answer 4

This link should be helpful............http://www.wwwebtax.com/general/form_w9.htm

Answer 5

Go to IRS.gov and ask there ...