The Anti 9-to-5 Guide » Ask the cubicle expat: My client didn’t send me a W-9 form

Ask the cubicle expat: My client didn’t send me a W-9 form — help!

March 17th, 2008

Jasmine asks: I just started out as a full-time freelance writer/producer/creative consultant in NYC about a month ago. I am a little unsure whether it is my responsibility to offer a W-9 form to clients, or if it is up to them to ask me for one. (Obviously, I’d rather not hand out my social security number willingly.) I have good record-keeping practices to ensure I am able to determine the appropriate amount of taxes I will owe, but expect that without a W-9 I won’t receive a 1099, although I will certainly report the income on my own returns. Any insights as to who needs to initiate a W-9 are very welcome.

I answer: Congrats on going freelance! This question, cousin to “Help, my client didn’t send me a 1099!”, is one I hear a lot from new freelancers. For those who don’t know, a W-9 is a simple form that tells clients your tax ID number (your social security number if you’re not incorporated), which they need for their records and to generate those cute little 1099 forms they send you each January.

It’s in the client’s best interest to get this form to you, and 99 percent of them will. You’re right that you won’t get a 1099 if the client hasn’t asked you to fill out a W-9, either because they’ve never done this before and have no idea that they’re supposed to (in which case, your good records will come in handy at tax time) or because they’re just starting to use freelancers and are too lazy/busy/confused to follow proper tax practices.

Don’t worry so much about giving your social security number to a reputable business that other freelancers can vouch for. I understand the fear, but I’ve never heard of anyone getting their social security info misused by a standup client, and I’ve been doing this since the Pliocene Era. If, however, a new client is giving you the heebie-jeebies, that’s a clear indicator that you shouldn’t work with them. And if anyone has a juicy My Client Committed Identity Theft And/Or Sold My Social Security Number On The Black Market story, I’m all ears (and of course, sorry to hear it).

Entry Filed under: Ask the Cubicle Expat, Money honey, This freelance life

11 Comments Add your own

1. l lawson | March 17th, 2008 at 7:54 am

I am new to freelancing. What states have the lowest cost of incorporation for an individual and are recurring costs from this different in each state. Thanks.
2. Michelle Goodman | March 17th, 2008 at 11:22 am

Not sure. Maybe a site like MyCorporation.com can help. I’ve never used it, so don’t take that as an endorsement. You can also learn more on Nolo.com, which my legal bible.
3. Selene M. Bowlby | March 19th, 2008 at 6:13 am

How important is the W-9 / 1099?

I’ve been freelancing on the side since 2001 (in addition to a full time job). In the last 7 years, I’ve only ever had 2 clients have me fill out the forms giving them my tax ID number. Are they ALL supposed to send you the forms?

Our accountant has never asked us about these at tax time – I just submit my own invoices and receipts (I keep very good business records).
4. Michelle Goodman | March 19th, 2008 at 11:29 am

Selene, you’re fine on your end since you’re keeping good records and reporting all freelance income earned. Your clients, however, should be sending you 1099s if they are claiming the money they pay you as a tax deduction on their tax returns. But maybe they’re not claiming it. Or maybe they are and they just aren’t doing their taxes correctly. Either way, not your problem.
5. Selene M. Bowlby | March 21st, 2008 at 5:10 am

Michelle, Thanks! Phew, lol, I thought I was in trouble there

So glad to hear it’s not my problem. Thank goodness for good records. Of course, they’re all in my computer and I have to print them out and add them up, etc. But….

Something I need to hurry up and tackle this weekend… less than 1 month to go til tax day – yech! Maybe I should just make the appointment already – that way I CAN’T procrastinate anymore.
6. Freelance Tax Hell? Take &hellip | November 25th, 2008 at 10:58 am

[...] Goodman rocks. Her post on W-9 forms on The Anti 9-to-5 Guide made my [...]
7. Joe Wallace | December 2nd, 2008 at 11:27 am

The W-9 issue aside, I like to set aside 30% of my freelance fees as a hedge against owing Uncle Sam…anybody else have strategies they use to keep from paying a huge chunk at tax time? Would love to know what others do to keep the tax wolves at bay.
8. Michelle Goodman | December 9th, 2008 at 10:34 am

Joe, this is what I do too. I put the money in a savings account so it’s not as easy to spend. Since you’re REQUIRED to pay quarterly in the U.S. (as a freelancer), there shouldn’t be any “paying a big chunk at tax time.” Instead, it’s four medium-sized chunks throughout the year.
9. Rick | March 10th, 2009 at 12:19 pm

protect your SSN. get a EIN. you don’t need to be a LLC or Corp to get one, Sole P is fine. https://sa2.www4.irs.gov/modiein/individual/index.jsp
i immediately send a W-9 with my EIN after a agreement is signed.
10. Scott Murray | June 17th, 2009 at 10:10 am

On page 3 of the W-9 form, the instructions read: “If you are a sole proprietor and you have an EIN, you may enter either your SSN or EIN. However, the IRS prefers that you use your SSN.”

Any thoughts on why the IRS “prefers” SSN over EIN? I’d rather use EIN, only to avoid sharing my SSN any more than I have to.

http://www.irs.gov/pub/irs-pdf/fw9.pdf
11. Michelle Goodman | June 18th, 2009 at 10:33 pm

Not sure. Anyone?

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