Are you renting an apartment or a house from a landlord? Have you paid a significant amount for the security deposit? Then you will need a W9 form if your landlord still needs to ask for one.
The law requires a W9 form for any property income paid to you. This is how the IRS accurately estimates any taxes owed in a given year. But how does it affect you and your landlord? Well, we have answers.
Keep reading as we cover what is a w9 form for a landlord and why you need one if you want more information on this subject.
What Is a W9 Tax Form for a Renter?
IRS Form W9 is also known as a W9 form. You need this form for any income paid to you under several circumstances. The W9 form is required for any payment of more than $600 if the payer does not employ you. You can complete these forms online with a digital signature or go the traditional route and submit them on paper.
What Is a W9 Form for a Landlord?
In the case of a landlord and tenant situation, when renting an apartment or a house, your landlord may request that you submit a W9 form. Again, this depends on the state, but if your security deposit is held in an interest-bearing account, when it gets returned to you, the interest it carries will be the reason for the W9 form request.
What Is a W9 Form Used For?
You have two options when your lease ends, and your landlord returns your deposit and accumulated interest. You can either add it to the current deposit if it’s gone up in the time you’ve rented, or you can have it paid out to you.
If you choose to have it paid to you, the landlord must submit a Form 1099 to the IRS. It provides the landlord with your correct credentials so they have the information for their 1099 form. Without it, they cannot pay your interest to you.
What Information Is Needed on Form W9?
The primary purpose of Form W9 is to confirm your tax identification number, so they know who to pay. Filling in this form does not allow anyone to see your annual income. Information captured on the form is:
- Individual Name or Business Name
- Physical and/or Postal Address
- Federal Tax Classification (i.e., Individual, C Corporation, Partnership, etc.)
- Individual Tax Identification Number (ITIN)
- Social Security Number (SSN) or Employer Identification Number (EIN)
If you don’t have an SSN, input your ITIN into the SSN box.
Never Ask What Is a W9 Form Again!
We hope we’ve made it easy to understand what is a w9 form for a landlord and why you may be asked to submit one. Filling out Form W9 should be a quick and straightforward process and is essential if you want to claim any interest owed to you or any other property-related income.
We encourage you to find more like it in our Tax category if you’ve enjoyed this article.