Resqu2 Loc: SW Va

After reading through all this helpful info I decided to go ahead and get my EIN since the W9 seems to be a common request. I’m getting more request to do paid work and want to remain completely legal. I know I won’t have to pay taxes on these small amounts once you count monthly expenses and travel. I pay $23 each month for my web site and Lightroom subscription. If the IRS wants to talk about $50 then I want to talk about the 8k in equipment I bough this year.

Rick from NY Loc: Sarasota FL

It would probably be wise for folks to read previous replies before responding.

Once again, you do NOT get a TIN (taxpayer identification number) which is a generic term for all sorts of different ID numbers. You get an EIN (employer ident number). You do so by filling out a simple online application called SS-4 form. It takes about 2 minutes to apply as a “sole proprietor “.

You do not have to state a “mission or purpose statement” - that is only for applying for non profit status which is the opposite of what you want. As for “disclosing” sensitive info - the form is filed with IRS who already has your name, address and SSN. What’s the problem? The entire point of obtaining an EIN is to avoid giving your SSN to people who hire you.

Why would anyone forego a fee (even a $50 one) because of 2 forms which take less than 2 minutes to complete? Once you have the EIN, it’s yours forever. you never have to do an SS4 again and the W-9 asks for your name, address and EIN. 3 questions. If you plan on shooting other gigs, you can fill out the W9 once and just send copies to any entity that requires one.

Rick from NY Loc: Sarasota FL

Bingo! You’ve got it. Exactly correct. And yes- you may deduct your expenses that you incurred performing the gig such as gas, tolls, etc. While you won’t be able to deduct the entire $6k of equipment purchased all at once, you may deduct a part of it through depreciation. The only legitimate downside to “doing it the right way” is that the paperwork involved annually when you file your taxes does get more complicated. If your only fee is the $50, it’s pretty easy. If you are fortunate enough to earn more fees, then you might have to get help from a tax preparer to minimize the tax hit.

Good luck.

Scruples Loc: Brooklyn, New York

I thank you for clarifying EIN and TIN. More importantly, I hope we all wish to be honest with the IRS. Nowadays, you can pick up a stone and see a scam lurking underneath. More often, I usually just print a photo and mail it off later. Basically, I am lazy sometimes.

Thanks for clarifying from a sub-contractor point of view. I was looking at the question from a 501(c)3 non-profit charity end!

Rick from NY Loc: Sarasota FL

Not for profit application paper work is indeed way more complicated.

Scruples Loc: Brooklyn, New York

Thank you Rick

Steve