In one line
The IRS form a US client asks you to complete so they can report what they pay you.
Also called Form W-9 or the taxpayer identification request.
What it means in practice
A W-9 gives the client your legal name, business type and taxpayer number. They keep it on file and use it to issue a 1099 at the end of the year if they paid you above the reporting threshold.
Filling one in does not mean you are an employee and it does not cost you anything. Refusing to provide one usually means backup withholding on your payments.
Example. A new commercial client sends a W-9 before setting you up as a vendor.
Where it shows up on the paperwork
It is not part of your invoicing at all. You complete it once for a client, they hold it, and it feeds the 1099 they issue at year end.
What goes wrong
- Sending it by unencrypted email attachment to whoever asked, without checking who they are.
- Refusing to complete one, which usually triggers backup withholding on your payments.
- Filling in the wrong entity type, which puts the wrong name on your 1099.
The tools for this
Related terms
- EIN (Employer Identification Number)The federal tax number that identifies a US business, used the way a Social Security number identifies a person.
- Tax invoiceAn invoice that shows tax charged on the sale, with the rate and your tax registration number.
- InvoiceA document that asks a client for payment for work already delivered.
Common questions
Why does a client want a W-9?
So they can report what they paid you. They keep it on file and issue a 1099 if the total passes the reporting threshold for the year.
Does completing a W-9 make me an employee?
No. It identifies you as a payee for reporting. Employment status is decided by how you actually work, not by which form you filled in.