What is the difference between a W-2 and W9?

The W-2 is the form you receive in the mail from your employer at tax time, while a W-9 is a form you submit if you’re doing independent contractor work for someone.

What is the W9 form used for?

More In Forms and Instructions Use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS to report, for example: Income paid to you. Real estate transactions. Mortgage interest you paid.

Can I have a W9 and a W-2?

The W9 is the form you gave the person/company that pays you. It is just to give them your ssn or ein if you have one. At the end of the year if they paid you $600 or more they will give you a 1099Misc. So you are a W2 employee and a 1099 self employed.

Who needs to fill out a W9?

Those who should fill out a W 9 are those who are working as independent contractors or freelancers, because the W-9 is the form used by the IRS to help gather information about such workers. The W-9 form is an informational reporting tax form, meaning that it provides information to the IRS about taxable entities.

How does a W9 affect my taxes?

Taxation on W-9 income In general, income that results from a W-9 arrangement is not subject to IRS withholding. Rather, it is the payee’s responsibility to claim the income on his or her tax return, and to pay any appropriate taxes.

Does W9 affect your tax return?

How does a W-9 affect my taxes?

Under a W-9, the company will not withhold any taxes for you. You are responsible for ensuring the right amount of taxes are paid to the IRS. And when it comes to Social Security and Medicare taxes, you have to pay both the employer and employee’s share.

What is the difference between a W-2 and W-9?

Two forms that are easily confused, though, are the W-2 and W-9, which serve completely different purposes. The W-2 is the form you receive in the mail from your boss at tax time, while a W-9 is a form you submit if you’re doing independent contractor work for someone.

Which is better, a 1099 or W-2?

At the core, the W-2 is more rigid, but also more streamlined, while the 1099 offers a bit more freedom all around. However, the benefits and disadvantages of 1099s are often two sides of one coin; 1099s offer more flexibility, but with that flexibility comes a slightly more complicated tax situation.

Who needs a 1099 or a W-2?

In short, 1099s and W-2s are two different tax forms used for two types of workers. Independent contractors receive 1099 forms and traditional employees will receive a W-2 every year. But sometimes it can often be difficult to classify workers.

What is a W-9 and do I need one?

A W9 is a form from the Internal Revenue Service (IRS) requesting a Taxpayer Identification Number and Certification. It is used for freelancers who work as contractors rather than full-time employees. A business or individual will send you a W9 when they need your social security number in order to notify the IRS of how much they have paid you.