W9 | Imamother

amother

Beige

Sat, Nov 10 2018, 9:14 pm

How does it work when you sign a W9? Do you have to deduct taxes yourself? I’ve always worked with W4 in the past...

seeker

Sat, Nov 10 2018, 9:53 pm

Yes, you don't get taxes withheld on W9. Talk to an accountant about whether you need to pay estimated taxes.

chatz

Sun, Nov 11 2018, 10:36 am

A w-9 is giving your social security or tax ID to someone who is going to pay you. Generally, what you will be paid will go on a 1099 at years end.

Yes, you are responsible for taxes for any payments coming from that person. You will get full payment without any taxes withheld.

If it's a significant amount, you need to plan for it.

If you're an independent contractor, you are responsible for:
Fica and Medicare - both employee and employer portion (bit less than 15%).
Income tax
State income tax
Possibly local income tax

You can also deduct any business expenses.

If it's for rental income or other types of income, the rules may be different.

If you're eligible for earned income credit or child tax credit, that can go towards the above taxes.

Amarante

Sun, Nov 11 2018, 10:37 am

W9 is the form you provide to someone who pays you as an independent contractor.

1099 is the form the person sends you and the IRS which specifies the amount paid to you in each tax year.