Company ask me for a W9 to do a small photo job for them, anyone deal with these?
Aug 3, 2022 09:51:39 #
W-9 is no big deal with regards to personal information. Businesses can get way more information on you if you use a credit or debit card for your purchases with them.
I did accounting for a 501-3c for years and the request for a W-9 from vendors (actual & potential) is pretty standard, even if the payouts are less than $600. I do agree to keep this payment you receive noted separately and you DO need to file income from the 1099 you may get from them though, even for this small amount.
Some bored IRS person might flag even a $1 discrepancy from 'reported' to 'actual' income. Don't ask me how I know.
I did accounting for a 501-3c for years and the request for a W-9 from vendors (actual & potential) is pretty standard, even if the payouts are less than $600. I do agree to keep this payment you receive noted separately and you DO need to file income from the 1099 you may get from them though, even for this small amount.
Some bored IRS person might flag even a $1 discrepancy from 'reported' to 'actual' income. Don't ask me how I know.
Aug 3, 2022 10:01:31 #
Nearly all companies require the W-9 for all employees or contractors. If the company is going to pay you any money, they are required to have this form on file. And they have to be done each year. I was a bookkeeper in my other life. If a company doesn't require one, then they are planning to do this "under the table." If they are willing to do that for you, then they may be doing it for others, which means they are using unscrupulous business practices.
Aug 3, 2022 10:03:49 #
Rick from NY
Loc: Sarasota FL
mwsilvers wrote:
If they demand a w9, you could potentially be liable for taxes on this income.
News flash. You are “liable” for taxes on this income whether you get a 1099 or not.
There are so many misleading or downright false info in the answers posted that I will try to address them individually.
Aug 3, 2022 10:07:13 #
Rick from NY
Loc: Sarasota FL
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.
The reason that legit businesses require the W-9 is because even if your $50 gig is less than the $600 threshold, they may pay you $700 for a future gig in the same year.
Aug 3, 2022 10:13:19 #
Rick from NY
Loc: Sarasota FL
ken_stern wrote:
For $50.00 -- I would tell these folks to "Pound Sand"
So for the 15 seconds it takes to fill out a W9, you would forfeit a fee? Rather cavalier attitude.
The single best piece of advice given so far is to obtain an EIN (not a TIN) from IRS so you don’t use your SSN. totally agree that disclosing your SSN is bad practice. The form you need is an SS-4 and you can apply online at IRS site -takes about 3 minutes
Aug 3, 2022 10:17:34 #
Resqu2
Loc: SW Va
Rick from NY wrote:
News flash. You are “liable” for taxes on this income whether you get a 1099 or not.
There are so many misleading or downright false info in the answers posted that I will try to address them individually.
There are so many misleading or downright false info in the answers posted that I will try to address them individually.
That I do understand and the last group I ever want to be at odds with is the IRS. I’m considering going forward with getting my TIN or EIN and state DBA and make everything completely legal mainly because I have been ask to quote a few weddings and larger events. These won’t be $50 events.
Aug 3, 2022 10:18:13 #
Rick from NY
Loc: Sarasota FL
jcboy3 wrote:
If they don't give you a 1099 at the end of the year, then you can forgo declaring the income. If they do, then you will need to include the 1099 in your taxes. If they are asking for a W-9, they will most likely give you a 1099. But to be sure, if you don't get one, ask them if they plan to do so.
If they don't give you a 1099 at the end of the year, then you can forgo declaring the income. If they do, then you will need to include the 1099 in your taxes. If they are asking for a W-9, they will most likely give you a 1099. But to be sure, if you don't get one, ask them if they plan to do so.
Utter nonsense. You may not “forego” declaring the income whether you get a 1099 form or not. You may choose to evade taxes, but the income is always taxable. What most unsophisticated people misunderstand is that when you declare the income, you get to deduct expenses against that income. You pay tax on the net which, in the case of a $50 fee would undoubtedly result in a -0- tax.
Aug 3, 2022 10:36:13 #
Rick from NY
Loc: Sarasota FL
billt1970 wrote:
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
Good luck with your emerging "business"BT
Want free (correct) advice? Suggest rather than using you SSN, apply for EIN (employee identification number) using Form SS-4 and use that on the same Schedule C you always filed. Saves you from disclosing SSN to strangers.
Aug 3, 2022 10:40:01 #
Rick from NY
Loc: Sarasota FL
MadMikeOne wrote:
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.
Huh? 50 yrs tax experience and you think filling out a W-9 is too much info for “no benefit to you”? That is ridiculous. If you plan on shooting for a fee, no legit biz will pay you without the W-9.
Aug 3, 2022 10:44:00 #
Rick from NY
Loc: Sarasota FL
jbk224 wrote:
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'.
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'.
No legit biz will call a fee to do a shoot a tip. They may offer you the $50 as a travel reimbursement for $50, but won’t call it expense reimbursement for larger amount
Aug 3, 2022 10:45:25 #
Rick from NY
Loc: Sarasota FL
Bill May wrote:
The W9 is a statement that is required by the IRS ... (show quote)
Finally! A reply from someone who actually knows what he talking about. Kudos.
Aug 3, 2022 11:01:06 #
If you plan to work for pay, get used to this request. It's just the employer protecting itself. Belly up to the bar and stop your whining, or don't do this at all! This is not a big deal. Under reporting income is what took the gangsters down. Best of luck.
Aug 3, 2022 11:34:21 #
JFCoupe
Loc: Kent, Washington
The reason many businesses have made it an upfront requirement is that it is much more difficult to get folks to comply with W-9 requirements after they have been paid. Also, it helps some with record keeping, checking whether or not the payee has reached the $600 per year threshold.
Aug 3, 2022 12:33:18 #
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.
Yes, social security number works.
Aug 3, 2022 13:33:20 #
Dr. Joel Germond
Loc: California Central Coast
People occasionally ask me to sell them a print (I do wildlife photography primarily). Because I don't do photography for a living I ask them to cover my costs and make a $100 donation (through me) to a local wildlife rehab or land conservancy. It raises a little money and people seem to feel good about it. In general when people want photography they do expect to pay less than minimum wage for my time involved. I'm keeping my day job.
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