Do I have to provide my social security number for contract work?

Question

I did contract work for under someone for under $1000. He has already paid part of the sum, but he's asking for my social security number before he pays the remaining money. I was under the impression I only have to provide my social security number if he's my employer. I am very hesitant about giving him this information, especially because it's only contract work.

Answer 1

Business are required to issue a 1099 for any amounts over 400.00. In order for them to issue the 1099 they need your SSN or tax id number. This is usually requested by the payer by them having you complete form W9 to verify your Tax ID number.
http://www.irs.gov/pub/irs-pdf/fw9.pdf

This enables the business to deduct amounts paid to contractors for the funds paid to you

Answer 2

Businesses paying more than $600 in services to an individual need a tax ID.

If you don't feel comfortable providing your SSN, you can apply for an EIN with the IRS. Fill out a SS-4. There are different ways to submit the completed information: online, mail, or over the phone.

Once you have your EIN, submit that to the person requesting a tax ID (fill out a W9).

To make it even easier come tax time, open a bank account using the EIN. Opening a biz bank account is one of the common reasons self-employed persons such as yourself apply for a separate tax ID.

Good luck...

Answer 3

Yes, you must give them your tax ID upon request. For an individual, your SSN is your tax ID. Since you are in business for yourself, you could get an EIN from the IRS and use that for your tax ID. It's a good idea to do so, so that you're not sharing your SSN with so many people.

Any business that pays you $600 or more for services rendered (other than as an employee) in any year is required to file Form 1099 with the IRS and give you a copy. Form 1099 must have your tax ID on it. Many businesses will hold payments hostage if you have not provided your tax ID. Since you're not an employee this is a purely civil matter.

When you file your tax return, the IRS will cross check your claimed income against any 1099s that they have on file for you.

Answer 4

He should have you fill out a W-9 form. And yes, if you're getting paid whether as an employee or contract, you have to give him your ssn.

If you make over $600 for the year from him, he's required to send you a 1099 at the end of the year, and report it to the IRS.

Answer 5

Generally.....Yes.

Absent providing a SSN, you could provide him with a Federal Employer Identification Number (FEIN)......but, its a heck of lot easier to just give him your SSN......

If he pays you over $600, he is required by law to give you a 1099. The SSN goes on the 1099.

Answer 6

YES. I usd to do this all of the time and I had to call people to get their SSNs and their address (to mail to them as well as entering information on the 1099s). I am very hestitant as well to give anyone my SSN but in this case, they do need it.

Answer 7

No, you don't have to give him your social security number. All that matters is if the contract you both signed between you says that you do X amount of work for him for $1000 dollars, and you did the work to satisfaction, then legally he owes you $1000. Period. Withholding the money is illegal, and if he doesn't pay you, you should take him to small claims court...you would be virtually guaranteed to win, since he's already paid you part of the money.

Answer 8

NOPE