Who has to fill out a W9 form?
Many people are self employed and often do jobs as a musician entertaining in a restaurant lounge or nightclub or even for a company or corporate event. Learn what a W9 Form is and see the details. It is simple to fill out. Download a Free W9 form.
These are just some examples and there are many. People working freelance who are getting paid by companies big and small and the freelancer is technically a sole proprietor.
The freelancer may have done a few jobs for the company, restaurant, nightclub, etc. thinking, “Oh boy this is going to be money under the table!”
Nice try – no dice
You are asked to fill out and submit a W9 form so that the person hiring you to do these jobs can have your information at hand to be able to send a 1099 form to you at the beginning of the next year just in time for you to file your taxes.
The 1099 tells the IRS how much they paid you because they are deducting the cost of your services as an expense of their business.
So now you will have to file the 1099 when you file your taxes for that tax year. This shows that you earned money and you know what that means? Of course you do. The IRS will want to tax you on that income.
If you save all of your receipts for legitimate expenses etc for the year you can deduct those from your income and possibly get back closer to the tax burden that you can live with. Let me suggest reading Tax Deductions For Musicians
There is another excellent article for home office deductions.
And probably best of all the mileage allowance – deduction article.
Good Luck – Remember… Death and Taxes.