Form W-9, Request for Taxpayer Identification Number and Certification, is how you collect a U.S. payee's correct name and taxpayer identification number (TIN) so you can file information returns such as Form 1099-NEC. Ask contractors for one before you pay them. For payments made in 2026, a 1099-NEC is generally required at $2,000 or more. ProfitDrawer's bookkeeping spreadsheets record who you paid, which helps you see who may need a form.
Key points (IRS Form W-9 page and Instructions for the Requester of Form W-9, March 2024):
- The payee fills it in and gives it to you, the requester. It is not sent to the IRS; keep it with your records.
- It is used to get the TIN of a U.S. person, including a resident alien and a partnership, corporation or association organized in the United States.
- A single-member LLC that is a disregarded entity gives the owner's SSN or EIN, not the LLC's EIN.
- If a payee does not give you a TIN, or the IRS tells you the TIN is incorrect, you may have to withhold 24% of reportable payments as backup withholding.
- Besides payments for work, W-9s are used for real estate transactions, mortgage interest, cancellation of debt and IRA contributions.
When you are the one being paid, a client may ask you for a W-9. You can give your SSN or an EIN, and an EIN is free from the IRS.
The $2,000 Form 1099-NEC threshold may be adjusted for inflation from 2027. General information, not tax advice.
Source: IRS: About Form W-9 · Updated
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General information, not tax, legal or financial advice. Check the rules for your state and your situation.