Form W9 2022 – The W-9 form is also known as the Tax Identification Number. It is used to report the income of persons or entities. In addition, it is also used to obtain essential information about such a person. A W-9 form is a tax form that several taxpayers, such as vendors or independent contractors, fill every time they make an income from their work or service. In this guide, we will look at what the W-9 form means and lots more.

The W-9 form is used by businesses to obtain helpful information from payees to prepare tax returns information for the IRS. Taxpayers utilize the form to verify taxpayer details and ascertain whether they are subject to backup withholding.

Form W9 2022

Form W9 2022

What are examples of W-9 income?

Essentially, the W-9 form is used by an independent contractor, freelancers, and gig workers who are paid at least $600 by a business or employer. The form is also utilized to report different types of income to the IRS. Some of these types of income are; dividends, stock sale, debt cancellation, sales of mutual funds, dividends, real estate transactions, miscellaneous income, etc.

How to fill out a Form W-9 for 2022

Filling the W-9 form is an easy process. Often people think the process is complicated. Mind you, filling out the form is relatively short. Below is the process involved with filling the W-9 form.

At the top of the Form W-9;

  • Input the name available in your income tax return.
  • Input the business name if the name is different from the name in the income tax return.
  • State the federal tax classification for the person whose name is on the income tax return. Check only one box.
  • Where applicable, include exemption codes.
  • Input the complete business address. This will include street number, street number, and apartment number.
  • Input city and state where the business is located and the zip code.
  • Where applicable, include account numbers

Part I:
Input the tax identification number. This can either be the social security number (SSN) or the employer identification number.

Part II:
Append your signature and include the date.

IRS W-9 form definition of terms

When filing the Form W-9, you might likely come across various terms and terminology that may be unfamiliar. Below is a list of terms and their definitions.

Taxpayer Identification Number (TIN)

This can either be the Social Security Number or Individual Taxpayer Identification Number, or Employer Identification number. While individuals make use of the SSN or ITIN, business entities can make use of the EIN.

Backup withholding

This represents a certain amount or percentage of income that is held from payments received by the taxpayer. This amount is usually sent to the IRS. In addition, backup withholding comes into play when a taxpayer fails to report income to IRS, fails to meet the TIN requirements, and fails to submit the appropriate information to the IRS. Should a taxpayer fail to signify their taxpayer identification number and backup withholding status, backup withholding may take effect immediately.

Exemptions

This part of the W-9 form is only applicable to specific entities but not individuals. Such entities exempted from backup withholding have to input the correct code highlighted in the instructions. Other entities exempted from Foreign Account Tax Compliance Act reporting requirements should enter the valid code highlighted in the instruction.

Form W-9 2022: Is the form different from previous years?

The IRS will always announce any changes made to the form. As it stands, the 2021 W-9 form is still the same as in previous years. The IRS website has the current view of the W-9 website. Timely completion of the W-9 is always essential. In addition, it is necessary you understand the various aspects and terms of the form before completing it.

Get and Print Form W9 2022

Print W9 Form 2021

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