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Does a W9 mean you are an independent contractor?

Form W-9 provides personal identifiable information to a person or business used for reporting income paid to individuals such as self-employed people like independent contractors, freelancers, vendors or other customers.

Who is exempt from a W9?

Corporations are exempt from backup withholding for certain payments like interest and dividends with some exceptions. However, corporations arent exempt from backup withholding for payments: For attorneys fees or gross proceeds paid to attorneys; for providing medical or health care services.

What is a W-9 form used for?

The W-9 is an official form furnished by the IRS for employers or other entities to verify the name, address, and tax identification number of an individual receiving income. The information taken from a W-9 form is often used to generate a 1099 tax form, which is required for income tax filing purposes.

What is the difference between a 1099 and a W9?

The difference between 1099 vs W-9 is a straightforward one: the contractor fills out the W-9 form to provide information to the business they work for, and that business later reports the contractors yearly earnings on the 1099 form.

Is there a 2023 W-9 form?

The IRS on July 26 released a draft 2023 revision of Form W-9, Request for Taxpayer Identification Number and Certification, that includes a new reporting line for flowthrough entities like partnerships and trusts.

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