Why Do You Need A W-9 Form?

Answer 1

The government requires that workers and businesses have certain forms on file for tax purposes. The w-9 is one such form. This form is how employees or independent contractors communicate their business status to employers. It also allows employers to send the proper tax form to the IRS.

How Do You Classify Yourself

Sending in the form will help a business determine what paperwork it needs to send you at tax time. You can indicate that you are sole proprietor, corporation or a private individual. Anyone who is not indicated a corporate status will be sent a 1099 form by the end of January of the current tax year.

Let Employers Validate Your Identity

This form also allows anyone who pays you to validate your identity. You may be asked to send in other forms of identification to verify you are who you say you are. However, most people will just need their social security number or employer identification number. A signature is also required to verify that all information is truthful to the best of your knowledge.

Variations Of The Form

Form w-9s is used to verify that you are using your student loans for educational purposes only. This is important because you can only deduct student loan interest if you are using the money to pay for college. Some people will use the money to pay for things that may not be related to college expenses. Make sure you fill this form out to get credit for your student loan interest.

Submitting the proper tax paperwork will make filing your taxes a lot easier. Don't think that you are home free if you don't send in this required document. The IRS is still going to know about any income that you make during the year. Not reporting all of your income can result in an audit of your return.