w9 form means a tax form, which helps you to submit all of your tax; personal information to the Internal Revenue Service. where this form never asks you for any income. it is a tax information collecting form. such as your name, address, city, state, and country.
however, it also asks for a TIN ( tax identification number ) . so you must give all the information; that the tax form needs. now let’s take a deep look at; for what reason? The W9 was needed and how it works. we will go step by step in this process, let’s begin.
w9 form means tax form ( clear definition)
if you are the person who wants to write the income through the 1099 tax form, which means other than your salary, wages, etc… you are only able to; write salary and wages income through the w2 tax forms.
this income is like dividends, an online selling website, or lenders’ mortgage interest extra…. when you have this type of income you must fill out the w9 form before filing the 1099 tax forms.
for this reason, this w9 form helps to Internal Revenue Service; to find your all personal information and TIN (or) social security number so now you can take a look what its purpose.
what is the purpose of the w9 form?
let’s say you have any business income and you decide to pay the tax, calculate and pay the tax of your business income. so before knowing the purpose of your w9 form, you must have to know about the 1099 form.
so you cannot report this on your w2 forms, you only can able to pay the tax by completing the 1099 forms.
if you don’t know what is 1099 tax form. then I recommend you to check out our article and come back to read it again this article.
if you don’t know, for what purpose are 1099 tax forms used? then you find it hard to understand why w9 forms are needed and what their is purpose.
when you have income through business (or)interest, then the 1099 form is the proof of the payment, that you received from the employer. this tax form is sent to the Internal Revenue Service and you by your employer. when you didn’t file the tax for your earned income.
then you will be captured by your internal revenue service. so you cannot cheat to pay tax, if you did, then you will want to pay the penalty for your tax amount. so now I think you may understand what is 1099 form is and what type of income is mentioned particularly in; those forms. now let’s take a look at w9 forms.
w9 forms means
when anyone pays the income tax through the 1099 tax forms. then they use the w9 forms to report their tin numbers and personal information.
for the reason this w9 form helps the Internal Revenue Service to identify; who you are. which this form shows all your personal information that they need.
don’t confuse the TIN, this is a tax identification number (or) sometimes it is mentioned as a social security number.
most of the industry gives to their customer, who earn dividends, save interest, etc… so you have to fill out the w9 form. Internal Revenue Service never allows you to pay this type of income.
it is your responsibility for your all dividends and interest; which come from all different work. so be careful, otherwise you will be penalized by the IRS. if you have any more doubts about the w9 form, then don’t hesitate, feel free to contact us. we are here to help you.