Wednesday, February 24, 2010
1099-MISC is a requirement.
I am a self-employed web designer from PA.
I've been "indie" for 6 or so years and up until now, have never been asked to fill out a w-9 form and frankly, don't like sending my social security number to my (house painter)client, who will then give it so some accountant.
The client just emailed me and said his accountant wanted me to fill it out to be on "record". This is for a job that I completed 6-8 months ago and was paid for in full by his business check (a little over $700) made out to my name, as i have no business identity. I will pay income tax on what i made from him - and i don't understand why he can't write off my expense as a advertisement expense.
So do i have to give these people my social security number? And what are they going to do with it?
thanks for any info you could provide!
Your painter client is correct and so is his accountant. You were supposed to have been receiving 1099s for "the last 6 or so years." 1099s W2s W4s W9s
Anyone who hires you is supposed to give you a W-9 to fill out so that he may have your name, address and social security # in order to send you a 1099-MISC a year-end.
Whether you are paid in cash or check or chickens if it's $600 or more you are supposed to receive a 1099-MISC.
Not wanting to give your social security # to someone for whom you work could be construed as paranoia or careful business practice.
If it's paranoia: Get over it. If it's careful business practice get a federal ID # and use that # instead of your social security #. EIN-employer identification #
Read all the posts in the links above and you will feel much better because you will understand that this is a required by the IRS.