Heyy! I use a get-paid-to site (link is in my profile) to earn a little extra cash.. Well, they require after you make $600 to send in a W-9 tax form.. Right now I am owed $200 but can't get it because I haven't turned one in, mainly because I don't really know what one is.
Can somebody explain a W-9 form to me in lamen terms and how this is going to affect me to turn one in.. Is this going to affect my taxes in some way? Like, will I have to pay taxes on the money I earn after I send in the form? Do I have to notify the person who does my taxes that I sent one in?
2007-10-19 01:37:54 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
A W-9 form is a Request for Taxpayer Identification and Certification. It asks for your name, Federal ID number or Social Security # and there are check boxes for Corporation, Partnership or Sole Proprietor (mostly like you). This information is used to issue you a Form 1099-Misc, miscellaneous income. So that the IRA knows how much you made from this company.
I request one from everyone I pay money to.
It is common practice.
You will have to report the income IF they isssue you a 1099 at end of the year. It is like a W-2 for businesses.
2007-10-19 01:46:57 · answer #1 · answered by hirebookkeeper 6 · 1⤊ 0⤋
A W-9 is like a W-4 for self-employed people. If you make $600 or more the person paying you is required to send you a 1099 form. It's similar to a W-2. Keep in mind that whomever is paying you is not holding out taxes. You are supposed to report any income that you make and pay taxes on it. If you have someone who does your taxes, you should talk to him/her about this. He/she can decide if you need to claim this income on the 1040 as other income or if you will have to file a Sch. C. If you have to file a Sch. C then you will also have to pay self-employment tax.
2007-10-19 02:23:52 · answer #2 · answered by angela 6 · 0⤊ 0⤋
If you work as an employee for someone, you fill out a form called a W-4 telling them how much tax to take out of your paycheck. You are working as an independent contractor, they won't take taxes out so you don't do a W-4, but you do fill out a W-9 form giving your social security number so they can report your income at the end of the year to you and to the IRS. You'll get a form called a 1099-misc instead of a W-2 for this income - and yes, you'll have to pay taxes on it, income tax plus self-employment tax (social security and medicare). It's income to you, so you owe tax on it.
You don't have to tell the person who does your taxes ahead of time, but you'll take him or her the 1099 along with any other tax information you have.
2007-10-19 03:34:24 · answer #3 · answered by Judy 7 · 0⤊ 0⤋