Do I need to create a W9 together with an invoice?

Do I need to create a W9 together with an invoice? Tax W9 form is usually used during a business relationship between an independent contractor (freelancer, usually) and an employer. However, it can be also requested by a customer in cases when they spend over $600 in your shop (this limit is still the same in 2020).

What is a W9 invoice form?

Different formats of the document do not exist. The customer does not have a right to ask anything more than this since the only reason for them to ask in the first place is that they will need to fill out a 1099.

There are also other reasons to fill out W9 online:

  • 1099-C is often required in cases of debt cancellation together with the TIN
  • 1098’s could also be a reason for your business partner to ask for your information if you work in the education or private property fields

What do you need to provide in the document?

One must include several types of information as illustrated in the table below.

Personal Information Name and/or Business Name, address match is very important since your older address can be used by the payor
Exemptions Can be applied to some entities
Federal Tax Class Must correspond with the personal information, tick only appropriate boxes

Always pay close attention to the correctness of your inputs when filling out. Providing false information can be considered a crime. How to get the standard form: you can go to the IRS website and find the blank here.

The main takeaway

As you see, there is a big difference between invoicing and W9. However, you should not refuse to provide the form when asked. In the end, you don’t have to disclose any significant information.