How much taxes will I pay on a W-9?

The exact amount you’ll pay in federal income taxes completely depends on your gross earnings for that year as an independent contractor. However, if you are subject to backup withholding, your payer will withhold 24% of your total earnings and send those funds directly to the IRS.

Is a W-9 the same as a 1099?

No, A W-9 (or multiple) is an essential step in filling out a 1099, however. Independent contractors fill out a W-9 form to confirm their tax obligations for each of their employers, who will, in turn, use these tax forms to fill out their 1099. The 1099 form details the worker’s income for federal tax purposes and goes hand-in-hand with the W-9 form.

Can you fill out a W-9 without a business?

Yes. If you are an independent contractor without a business, you will still need to fill out a W-9 as an individual, a sole proprietor, or a single-member LLC. Simply fill under your name and SSN to file form W-9 without a business.

What happens if you don't fill out W-9?

Failing to fill out W-9 can lead to ramifications from the IRS. If you fail or refuse to provide a filled-out W-9 form, you will be fined $50 for each failure. Furthermore, a payee who refuses to fill out a W-9 (or provides false information) will be subject to backup withholding at a rate of 24% on all future earnings.

How much does it cost to fill out a w9?

Filling out a W-9 form itself does not typically cost anything, as the form is provided by the Internal Revenue Service (IRS) and can be downloaded for free from their website. However, if you need assistance filling out the form, you may need to hire a tax professional or accountant, which could result in fees or charges.