Form W-9 for Freelancers, Explained
Completing and returning a Form W-9 to your freelance clients is a legal requirement—they will use this information to report what they have paid you to the IRS. This guide explores the most important aspects of a Form W-9 for freelancers, including how to obtain one, steps to fill it out, where to send it, and best practices.
The Form W-9, Request for Taxpayer Identification Number and Certification is a form issued by the IRS. Freelancers must provide this form to clients, freelance platforms, and others (requesters) when asked, or issue it themselves to US-based people or businesses that they are working for.
A W-9 provides the freelancer’s Taxpayer Identification Number, their business information, and other details to the requester. The requester uses the details on a Form W-9 to complete and issue forms like the 1099-NEC to report the freelancer’s income to the IRS. It’s important to fill out a W-9 correctly so that your client can provide the correct information for tax purposes.
Key takeaways
You need to provide a Form W-9 to any client, other business, or individual that requests it from you.
You must ensure that all of the information you report on the Form W-9 is current and accurate.
The Form W-9 is used by your freelance clients to provide accurate compensation information to the IRS when they report what they have paid you via a Form 1099-NEC.
The way that you complete a form W-9 will vary slightly depending on the type of legal business you run, and the taxpayer number for you or your business.
Although filling out a Form W-9 is fairly straightforward, you should always double-check the details you’re providing.
Read on to discover why a W-9 is important, how to get one, the steps you need to follow to complete it correctly, and some common issues and best practices.
This is an in-depth guide for freelancers who want to understand and complete a Form W-9 for tax purposes. The information in this guide only applies to freelancers who are required to complete US tax returns. Please note that I am not an accountant or tax professional, and this guide is intended as general information only. You should always talk to a qualified professional about your unique circumstances. Please see the notice at the end of this guide for more information.
The purpose of Form W-9 for freelancers
Why do freelancers need to fill out Form W-9?
Your US clients are required to report how much they have paid you to the IRS. They need certain information about your freelance business so that they can report this amount accurately. Your client gets these details by asking you to complete a Form W-9. They then use the information from the W-9 to complete another form, a 1099-NEC.
It’s important to provide correct and timely information on a Form W-9. You’re legally required to complete and return an accurate W-9 on request. This helps to ensure that any 1099-NEC forms based on that information are complete and correct.
What is a Form W-9 used for?
When a client receives a Form W-9 from you, they use the details when they are completing and issuing a Form 1099-NEC. They need to complete a Form 1099-NEC if they have paid you more than $600 in the previous tax year. The 1099-NEC tells the IRS how much that freelance client has paid you in the tax year, and helps ensure that the income you report on your tax return is accurate.
1099-NEC forms are normally sent out by January 31 in the year following the tax year that they are issued for. Your client will send a copy to the IRS to report your income, and send a duplicate copy to you.
A blank Form W-9
Getting a Form W-9
What process does a freelancer need to follow with a Form W-9?
Completing a Form W-9 normally works as follows:
You want to start work with a US-based client.
That client requests a Form W-9 from you.
You download a Form W-9 from the IRS website.
You complete the Form W-9 with your latest business information.
You return the Form W-9 to the client that requested it.
That’s it for the Form W-9 itself. Here’s how your client uses it:
At the end of the tax year, the client uses your W-9 details to complete a Form 1099-NEC.
They calculate how much they have paid you in total and enter that information and other details on the 1099-NEC.
They send the Form 1099-NEC to the IRS and a copy to you.
You use the 1099-NEC when reporting your freelance business income as part of your tax return.
Where can a freelancer get a Form W-9?
A blank Form W-9 can be downloaded as a PDF from the IRS website. It’s a good idea to have an updated and prepared W-9 available that you can use when requested.
When does a freelancer need to complete Form W-9?
You will normally fill out and return a Form W-9 when you first start working with a client on a freelance basis. It’s also possible that a client may request a Form W-9 later, for example just prior to their deadlines to send out 1099-NEC forms for the year.
Freelancers should provide a Form W-9:
Upon request from a third party.
When they start work for an individual, business, freelance platform, or another entity.
Completing a Form W-9 as a freelancer
How does a freelancer fill out a Form W-9?
The Form W-9 consists of several parts. The freelancer will need to:
Provide their name as it appears on their 1040 tax return.
Provide the name of their freelance business if it’s different to their own name.
Provide their address or their business address.
Fill out a box for the type of freelance business they are.
Indicate if they are exempt as a payee or from FATCA reporting (most freelancers will not be).
Provide either their SSN or their EIN, not both.
Optionally, provide the requester’s name and address.
Optionally, provide a list of account numbers.
Sign and date the form.
Some freelance platforms and other businesses may ask you to enter information into an online form (not onto a W-9 directly). The details you provide will then be included on a W-9 and used for reporting purposes as normal.
Do I complete a Form W-9 differently depending on the type of legal business that I run?
Here’s how to enter your name correctly on the Form W-9:
If you’re a sole proprietor or single-member LLC, enter your individual name as shown on your tax return in box one. You may enter your business, trade, or “doing business as” (DBA) name in box two.
If you’re a partnership, multi-member LLC, or corporation, enter your legal business name in box one and any business, trade, or DBA name in box two.
Use your business address, normally your home address, on the Form W-9. Additionally, if you’ve formed an LLC for your freelancing, you should insert the correct letter for the LLC tax classification in box 3.
What exemptions might apply to me or my freelance business?
Box 4 on the W-9 allows you to choose exemptions that might apply for tax purposes. Most freelancers and freelance businesses probably won’t be exempt. If you think you might be, talk to a qualified accountant.
What is a freelancer’s Taxpayer Identification Number?
A Taxpayer Identification Number (TIN) is a unique number used to identify an individual or business for tax purposes. For freelancers, the TIN they provide on a W-9 will be either:
Their business’s Employer Identification Number (EIN).
Their own personal Social Security Number (SSN).
Only one of these numbers should be used on a W-9, not both. If you have an EIN and an SSN, you should use the EIN.
Do I need to list account numbers or complete the requester’s name and address?
Both of these areas are optional on a Form W-9, so you don’t normally need to fill them in.
Do I need to complete and send a new Form W-9 to each client?
You can use the same W-9 multiple times if your business details haven’t changed. There’s nothing mandatory on a W-9 that is unique to the client requesting it from you, so you can complete one with your business details and send that same form to each client that requests it. If you fill in optional information on a Form W-9, like the requester’s name and address, then you would need to complete a unique Form W-9 each time you return it.
How do I return the Form W-9 to my client?
Depending on your client, there are a few different ways to return a Form W-9. Always follow your client’s instructions on how they want you to return it. Some options might be:
Filling the form in electronically, entering a scan of your signature, and emailing the form back to the requester.
Printing out the form, filling it in clearly by hand, scanning it, and emailing it back.
Printing out the form, filling it in clearly by hand, and mailing it.
Are there penalties for filling out a Form W-9 incorrectly?
The IRS can issue penalties for failing to fill out a W-9 or providing incorrect information. These penalties range between $50 and $500, and there can be even higher penalties if you deliberately provide the wrong information.
How often does a freelancer need to fill out a Form W-9?
You will normally complete a Form W-9 once for each of your US clients, and there isn’t typically a requirement to send a new W-9 each year if your business details remain the same. You generally only need to send a new Form W-9 if certain details about your business have changed, like your Tax Identification Number. A client may request a new W-9, even if they already have one on file, and there’s no problem with sending them a W-9 with your latest details, even if they haven’t changed.
Freelance clients and Form W-9 requests
What types of clients might request a Form W-9 from a freelancer?
Clients that do business in the US are normally required to submit 1099-NEC forms, so they will request a W-9. This applies to private clients, marketing agencies, freelance platforms, and others. You can expect to get a request for a W-9 from your US clients and freelance platforms like Fiverr and Upwork. You might also need to send a W-9 to other platforms that pay you for content, like Medium or YouTube.
Clients who hire you through a freelance platform will not typically request a W-9, as that reporting will normally be handled by the platform itself.
Do I need to send a Form W-9 if a client doesn’t request one from me?
It’s good practice to send a W-9 to a client when you start working with them. You do not need to send a Form W-9 to the IRS.
Where should a freelancer send a completed Form W-9
You will return a Form W-9 to the client who requested it from you. You do not need to send a W-9 to the IRS or any other government agency.
What is a freelancer’s Taxpayer Identification Number?
A Taxpayer Identification Number (TIN) is a unique number used to identify an individual or business for tax purposes. For freelancers, the TIN they provide on a W-9 will be either:
Their business’s Employer Identification Number (EIN).
Their own personal Social Security Number (SSN).
Only one of these numbers should be used on a W-9, not both. If you have an EIN and an SSN, you should use the EIN.
Overcoming challenges completing a Form W9
What are the main problems with a Form W-9?
Although a Form W-9 is fairly straightforward, here are some of the issues that a freelancer might run into when completing and returning one.
Not returning a Form W-9
If you don’t send a Form W-9 to a client, that can delay them paying you, or issuing a Form 1099-NEC. It’s a legal requirement for them to issue a 1099-NEC, so you should complete and return the W-9 to save any hassle for you or them.
Not updating a Form W-9 when important business details change
You need to make sure that your client has your most up-to-date business details, so they can issue accurate reports to the IRS. If important details about your business change you should update your W-9 and send a new version to any clients you’ve worked for in the tax year. Details that might demand a new W-9 include:
Forming a new type of business entity, like an LLC
Getting a new Taxpayer Identification Number, like an EIN
Changing your business type or tax classification
Other important information changes
Missing or incorrect information on the W-9
It’s important to provide complete and precise information on a W-9. Check each box carefully to ensure you’ve filled it in correctly. It’s especially important to ensure that your SSN or EIN are accurate, and that you’ve chosen the correct tax designation. If you make a mistake, let the client know as soon as possible so that they can issue an updated 1099-NEC. The IRS may also apply penalties if you fail to provide a correct W-9 to a requester.
Using a Social Security Number instead of an Employer Identification Number
If you have an EIN for your business, then you should always use that number on a W-9, rather than your SSN. If you don’t have an EIN, it’s fine to use your SSN.
Using an older version of a W-9
Always download the latest version of the Form W-9 directly from the IRS, and use the most up-to-date revision.
Best practices for freelancers filling out a Form W-9
Here are some simple best practices you can follow to ensure you get the Form W-9 right.
Get the most current version of the W-9 directly from the IRS.
Fill out all of the relevant boxes and double-check them for accuracy.
Use the same information on the W-9 as on your personal or business tax returns.
If you’re a partnership, multi-member LLC, or corporation, make sure that you use your legal business name.
If you have a different legal business name, trade name, or DBA name, include that information on the form.
Select the correct type of business in Box 3, and enter the right tax designation if you’re an LLC.
If you have an EIN, use that as your Taxpayer Identification Number, otherwise you can use your SSN.
Double-check all of the details on the W-9 to ensure everything is accurate.
Sign and date the W-9.
Return the W-9 to the client as they have requested.
See our freelance guides on related topics
Invoicing and Payments: Invoicing clients, taking payments, credit cards, and related topics.
Revenue and Income: Understanding the revenue that’s coming into your business, bookkeeping, and similar topics.
Tax Forms: Various aspects of tax forms and similar topics.
I am not a qualified professional and I do not provide tax, legal, accounting, or similar advice. These guides are provided for informational purposes only. Always consult with a qualified professional on your unique circumstances. You can find more information in my disclaimer.
By Paul Maplesden