Is W-9 Form Necessary for Filing 1099-NEC Tax Form? Are you operating a business in the United States and recruited contractors? If yes, then you must know about W-9 and 1099-NEC tax forms. Businesses must need W-9 and 1099-NEC Form when working with independent contractors. Generally, independent contractors fill out the W-9 Form and provide it to the payer.
Generally, the 1099-NEC Form provides the details of contractor wages. This tax form is filed with the Internal Revenue Service also state tax authorities. With the help of the W-9 Form, the payer issues the IRS 1099-NEC Form to independent contractors.
Can I File 1099-NEC Form without W-9 Form?
Yes, you can file the 1099-NEC Form without W-9 Form. In this article, we provide details about W-9 and 1099-NEC Forms and why the W-9 form is required to file a 1099 Information return.
What is Form 1099-NEC?
IRS Form 1099-NEC reports the earnings a trade pays to contractors who are not full-time employees. Any payer who pays $600 or more to an independent contractor, freelancer, self-employed person, or sole proprietor for services they provided must file IRS Form 1099-NEC with the IRS. Also, as a payer, you must issue a 1099 Tax Form to the payees before the deadline. An independent contractor who gets a 1099 Form from a payer must report that income on their federal tax return.
What is a W-9 Tax Form?
W-9 Tax Form provides information about the contractor’s legal name, address, and Tax ID or Social Security Number. Generally, a payer should ask for a contractor’s W-9 Form. Or freelancer should freely provide a completed W-9 to each client.
Do you need a W-9 for a 1099 Tax Form?
Practically, a payer does not need a W-9 Form to issue a 1099-NEC Form. Particularly, the payer must need a contractor’s Tax ID or Social Security Number. If the payer contains valid SSN and Tax ID, then the payer does not W-9 Form. If payers don’t have a valid Tax ID, then the payer must collect the W-9 from the contractors. Otherwise, the payer does not provide accurate information on the 1099-NEC Information Return. So, payers must gather accurate information for filing the 1099-NEC Form with the Internal Revenue Service.
Who Should Get 1099-NEC Forms?
In the United States, if the contractor doing services with the payer, then he must file a W-9 Form to the payer. Form W-9 does not need to be filed with the Internal Revenue Service. This form is used for reporting non-employee payments to the payee as well as IRS. By using the 1099 Non-employee compensation Form, payers report non-employee payments to the contractor as well as IRS.
For instance, if you recruited a worker based on a contractor for your business development, then you must provide an IRS 1099-NEC Return to the payee, Payee uses this information return for paying federal income taxes.
Is W-9 Form Necessary For Filing 1099-NEC Tax Form? As a payer, if you have correct information about the contractor, then you don’t require a W-9 form for 1099 tax form filing. Particularly, you must report accurate details and accurate income for reporting the 1099 Form.
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