Company ask me for a W9 to do a small photo job for them, anyone deal with these?
Aug 2, 2022 18:25:16 #
Resqu2
Loc: SW Va
jcboy3 wrote:
Yes, you do. Still have to file with the IRS. Still have to file 1099s. I did non-profit accounting for years.
Good to know, thank you.
Aug 3, 2022 06:06:58 #
Orphoto wrote:
IRS requires that "employers" get a w9 when annual payouts to independent contractors exceed $600. Many businesses have a blanket policy that they do it with all vendors regardless of amount.
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I manage a polling place for my town, and at the morning brief I tell the team there are three important housekeeping tasks to get started:
1. I need to swear you in
2. At some point, the earlier the better, fill in the payroll sheet
3. If you’ve never worked for the town, you need to fill in the W-9 so you’re on record with the finance office for tax filing
It’s a simple form. You probably don’t remember filling one out for your last employer.
Aug 3, 2022 06:32:53 #
Orphoto wrote:
IRS requires that "employers" get a w9 when annual payouts to independent contractors exceed $600. Many businesses have a blanket policy that they do it with all vendors regardless of amount.
Until you obtain your TIN you can just use your individual name and social security number and be fine. Double check, as a sole proprietor you may not even need to get a TIN unless you form another entity for your business.
Until you obtain your TIN you can just use your individual name and social security number and be fine. Double check, as a sole proprietor you may not even need to get a TIN unless you form another entity for your business.
Sound advice here from Orphoto. I have progressed to a full time professional photographer over the past half-dozen years. If they ask for a W9 I send it to them, regardless of the amount paid for the job.
Also, I have not bothered to incorporate or get a TIN for my business. I just report income on a Schedule C.
Good luck with your emerging "business"!
BT
Aug 3, 2022 06:42:44 #
Resqu2 wrote:
Thank you and the person below for this info. I’m not doing enough yet to have to mess with taxes and will pass on this. What I guess surprised me with this request is all the groups putting on fund raising events are non profit and tax exempt. I guess you still have to have a tax paperwork trail.
Non-profits have to be very careful with their finances so they can maintain their tax exempt status. In your case, it may not seem worth whatever time it takes to submit the W9 but it’s necessary for them in the aggregate.
Aug 3, 2022 06:44:58 #
jcboy3 wrote:
Yes, you do. Still have to file with the IRS. Still have to file 1099s. I did non-profit accounting for years.
Absolutely…but depending on your total income you may not have a tax like liability but you may still have to file a return.
Aug 3, 2022 07:05:23 #
ken_stern wrote:
At least for me -- It comes down to how much I actually "trust" these folks/organization in addition to only getting $50.00 -- A W-9 has an awful "LOT" of your personal/private info that they can use any way they want (SCAM?)
Are you familiar with the word; Paranoia?
Aug 3, 2022 07:17:32 #
Aug 3, 2022 07:24:08 #
Resqu2 wrote:
I didn’t like what all has to go on the form for basically doing them a favor. It’s an established race supporting a Christian Academy but I still think I’m going to just skip or if I’m free that weekend I may just show up and shoot some for my webpage. It’s a superhero themed race and will be a good photo op.
Your 1st sentence above is exactly what I thought when I read your post. Waaayyyyyyy too much info for no real benefit to you. BTW, I'm a retired Tax Accountant with over 50 years of experience.
Aug 3, 2022 07:24:57 #
Resqu2
Loc: SW Va
steve49 wrote:
If you really want to shoot the photos, do it for free.
Not worth $50 imo
Not worth $50 imo
It’s an hour drive each way and I will miss a few hours away from my paying job. Wasn’t actually trying to make a dollar, just didn’t want to loose money. I may still shoot it or if my running continues to improve I may go run the race.
Aug 3, 2022 08:01:30 #
Retina
Loc: Near Charleston,SC
revhen wrote:
The hiring company will report your payment as income whether or not they claim it as an expense. The latter is probably the main reason for the W-9. Just my opinion, but they should be more willing to pay closer to a realistic rate given the IRS and the state will get their "fair share".Not worth $50 to do this unnecessary action.
Aug 3, 2022 08:07:36 #
jbk224
Loc: Long Island, NY
You have heard from many people with expertise here. There are two sides to this equation.
The Not-For-Profit side and you.
You can give the NFP a bill for $50 for the work. They can give you a check. They can record this as a deduction and not process a 1099 for you as your 'income' from them is less than $600.
Or, they can give you a 'tip' for $50 from their petty cash account. No different than any other tip they would give someone who did an extraordinary service for them. Or, they can give this to you as 'travel expenses reimbursement'.
You, on the other hand, should record your income outside of your normal W2 'job' appropriately.
If you feel it will become a considerable source of income in the future, you then can properly register with the IRS/State. Setting up a business involves much more than just getting the proper paperwork in place. Insurance.....
The request from the NFP for this information for a one off $50 'job' is unreasonable.
Since you would like to do this, but get paid for your expenses; why don't you discuss this with them and see what they ultimately say.
The Not-For-Profit side and you.
You can give the NFP a bill for $50 for the work. They can give you a check. They can record this as a deduction and not process a 1099 for you as your 'income' from them is less than $600.
Or, they can give you a 'tip' for $50 from their petty cash account. No different than any other tip they would give someone who did an extraordinary service for them. Or, they can give this to you as 'travel expenses reimbursement'.
You, on the other hand, should record your income outside of your normal W2 'job' appropriately.
If you feel it will become a considerable source of income in the future, you then can properly register with the IRS/State. Setting up a business involves much more than just getting the proper paperwork in place. Insurance.....
The request from the NFP for this information for a one off $50 'job' is unreasonable.
Since you would like to do this, but get paid for your expenses; why don't you discuss this with them and see what they ultimately say.
Aug 3, 2022 08:11:52 #
Income is taxable regardless if the payer gave you a 1099. Your expenses incurred to earn this income will diminish the portion of the income that is taxable.
Aug 3, 2022 08:16:22 #
Resqu2 wrote:
Kinda what I was thinking, I’m a runner myself but had to quit racing and I love doing race day photos for non profit organizations which are the only groups doing races to raise money. I thought it was a bit much of a request for that small amount.
A W-9 is no big deal. You will be providing such for anyone you get paid by in the future as an independent contractor. Even though it’s only $50, do you never want to work for these folks again? Don’t be stupid and get a reputation as hard to work with before you even get your fledgling business off the ground.
Aug 3, 2022 08:38:21 #
fetzler
Loc: North West PA
Remember there is a price for folding money and a different price for formal payments.
Aug 3, 2022 09:31:50 #
The W9 is a statement that is required by the IRS to ascertain that an individual has a SS# or a TIN (which you can obtain online from the IRS for no charge) A TIN is another layer of personal security to protect your personal information. Whether or not you receive a 1099NEC or not is dependent on the gross amount paid to you. The IRS rules require the taxpayer (you) to report all income from all sources, regardless of the amount received. A new wrinkle is that you may receive a 1099K if the money is paid via Venmo. This then is to be reported on your taxes. Reporting is not the same as paying taxes but is the starting point. Then you must determine if this is a hobby or a source of business income (See the IRS guidance on this decision) If this is for a qualified charity it is easier to donate your fee to them. In any case, it is best to keep accurate records and not be guided by whether or not you receive a 1099. I have been a credentialed tax accountant for over 20 years and my advise is to report and pay your taxes no matter what
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