How Does A W-9 Form Effect My Taxes?


2 Answers

Jack Bauer Profile
Jack Bauer answered
You did not state who is asking for a W-9 form, or for what reason they are requesting it. A person (or business) who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) or SSN to report, for example, income paid to you, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA.
If you are getting interest or other income reported to you, like for instance interest from a savings account, they will need to report that taxable income they paid to you, to the IRS. If they have collected taxable interest from you (mortgage interest for example), they need to report that as income they received.
John Cloi Profile
John Cloi answered
The purpose of a W-9 is to close the loop on a tax event. For example, if a Bank pays you interest on a savings account, they will deduct it as an expense, and it is taxable to you. When you claim Mortgage Interest as a deduction, they have to claim it as income. Jack is correct, and the IRS will always get it's share!!!

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