I have completed offers at EasyFreeCellPhones.com and am recieiving a free Apple iPhone. The website says I need to submit a W-9 form to them for gifts awarded of value $600 or more.
Do I need to submit a W-9 for the iPhone?
Thanks.
2007-07-31 10:38:40 · 5 answers · asked by Nick 1 in Business & Finance ➔ Taxes ➔ United States
They need to send YOU a Form W-9. You then apply your SSN to it and return it.
The iPhone you are receiving is fully taxable to you as ordinary income. If the value exceeds $600 then they will send you a Form 1099 at tax time listing the value of the phone. That Form 1099 must have your SSN on it and that's why they will need to send you a Form W-9 which you must complete and return to them.
If you don't give them your SSN, they will not send you the phone.
When you file your taxes next year you'll add the amount on the Form 1099 to the Other Income line of your tax return.
2007-07-31 10:47:26 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
Here is the Form W-9:
http://www.irs.gov/pub/irs-pdf/fw9.pdf
The company wants to get your SSN and is requesting you send it in via the IRS form W-9, where you sign under penalty of perjury that this is your SSN. So, if you want the phone, print out, fill in, sign and mail the form.
In January 2008, the company will send you a Form 1099 showing the value of the phone that you received. The Form 1099 will have your Social Security number on it. This information will be forwarded to the IRS.
This iphone is not a gift, it is an award for completing their offers. It should be reported on Line 21 of Form 1040 as "other income." Since you are not in the business of doing these offers for profit, you will not have to pay Social Security or Medicare on the value of the phone, but you will have to include it on your income tax return if you are required to file a tax return.
If you do not want to provide your Social Security number to this company, they will not send you the phone. You have to decide if the phone is worth the taxes you will pay.
2007-07-31 13:13:59 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Sounds like they're going to send you a 1099 at the end of the year. You will owe taxes on the prize. If you want the iPhone, then you'll have to send them the W-9 so they have your social security number for the 1099.
You're the only one who can decide whether you trust them enough, and want the iPhone enough, to give out your ss#.
2007-07-31 15:10:45 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
Have you checked to make sure that EasyFreeCellPhones.com is reputable? I wouldn't just go about giving out my SS# if I were you. Next thing you know your credit is ruined and you never got your iPhone.
Be careful.
2007-07-31 13:41:32 · answer #4 · answered by BHWMST 3 · 1⤊ 0⤋
that's weird. i wouldn't do that if i were u.
2007-07-31 10:42:10 · answer #5 · answered by Anonymous · 0⤊ 3⤋