W-9 form info.?

Question

I'm a DJ and have mostly do minor gig's often for free. Kinda like a hobby. I have recently been asked to get into a weekly gig and the resturant want's my W-9. I'm guessing that's my SSN and related info. I was wondering what they will use it for and if it will require me later to pay taxes or if my tax liability would be taken from the check before I got paid. They need the info. soon so any help would be much appreciated.....

Answer 1

If they pay you more than $600 in a year, they are required by law to issue you a 1099 for what they pay you. They have to report the payment to you to the IRS, and you will need to declare that income on your tax return. That income will be self-employment income to you, and be subject to self-employment (SE) tax in addition to the regular income tax at whatever your tax bracket is. SE tax is 15.3% of 92.35% of net self-employment income. They need you to fill out the W-9 form so that they have your correct social security number for tax reporting purposes. Depending on how much they pay you it will possibly create a tax liability for you, and no they don't take the taxes from the check that they give you. You have to pay the taxes yourself.

Answer 2

If you do odd jobs for a business and they pay you $600 or more they will send you a From 1099-MISC at the end of the year. They will also send a copy to the IRS. So the IRS expects you to report it. It may take them a while to write to you, but they will get around to it. So what you do is put your wages on line 7 of the 1040 as normal and then prepare a Schedule C for your odd jobs. If you own any tools or vehicles to do your odd jobs you will also have to do a Form 4562 to take a deduction for depreciation. Once you have your Schedule C done, do the Schedule SE. If your net income on the Schedule C is less than $433 you will only have to fill in a couple of lines. The results of the Schedules C & SE go onto the 1040. If you have to pay SE tax do not forget to take the deduction towards the bottom of page 1 on the 1040. As I see it, your choices are to report all of your income or to stop doing odd jobs for pay. If you get paid, do not report it and the IRS gets told about it, they will charge you interest and penalties. If it goes on for long enough before being stopped, the interest & penalties can be more than the total tax. If you do not like the idea of keeping books, contact several small CPA or EA firms. Most will give you a free consultation. Choose whoever you feel happiest with. At the very least, they will give you peace of mind. They may even spot some deductions you missed and actually save you some tax!

Answer 3

A W-9 is the form you fill out if you're doing work as a self-employed person, which this would be. And yes, at the end of the year you'll get a 1099 and will be required to pay tax on it. No they won't take out any taxes, you will be responsible for paying the taxes yourself.

Answer 4

I require a W-9 from everyone I write a check to. The purpose is so that they will issue you a 1099 if you are a sole-proprietor. I suggest you apply for an FEIN (Federal Identification number) so that your SS# is not given out to everyone. The W-9 tells what type of tax entity you are, what your legal business name is and your address and FEIN#/. An FEIN can be a SS# or Federal ID# issued by the IRS.

Answer 5

W-9 are required by all business that will pay you money for any purpose. The previous person is correct but in addition to self employed your broker may require to fill one out when they pay you reportable dividends, If you own stock or bonds directly that company may also request you to fill out a w-9 reportable funds received durring the year, usually anything over 10.00. Banks may also ask you to fill out one. Its more for record keeping so when the company gets audited they need to provide to the auditors the names adddresses and Social Security numbers to all the people and other firms that they payed money too.