What is a W-9 form used for in rentals in USA

Many residents in the United States are interested in the question of whether W-9 should be filled in when renting houses and other types of property. As with any other types of sharing, the form must be completed when the tenant receives amounts in excess of 600 US dollars. Foreign citizens who must sign filled in according to the rules of the form.

Special Taxation Rules

Individuals making certain payments to you must, under certain conditions, withhold and transfer to the IRS 28% of the submission of such payments. This is called “additional tax withholding.” Payments that may be subject to additional tax withholding rules include non-taxable interest, substitute, dividends, payments on brokerage and barter transactions, rent, royalties, payments under civil law contracts, payments made as settlements on payment card transactions and operations through third-party payment organizations, as well as certain payments from fishing vessel operators.

Real estate and signable transactions are not subject to additional tax withholding rules. All this part of the law allows you to withhold additional costs from the tenant, under certain conditions, which you need to know about when filling out the form.

Thus, rental payment for the use of housing, as well as other types of temporary use, fall under W-9 and require its completion and signature by residents located in the United States. At the same time, under certain conditions, it is possible to increase tax costs by the subcontractor, which can be obtained from US tax specialists. The rules may change, including for tax blank W-9 2020, so it is advisable to get acquainted with changes to the form on site www.irs.gov/fw9 as often as possible.