IRS form 1099-K and a W-9?


#1

I am a digital marketer and I use PayPal as my merchant service so I receive a 1099K each year for all of the work I perform. I have one client that is now asking me to fill out a W9 so they can file a 1099. I don't feel comfortable doing this because I am already receiving a 1099K for this work and I don't want to receive two 1099's for the same work I performed, not wanting to pay taxes for the same income twice. It is not like I am trying to get out of paying income, I just don't want to pay it twice.

Any thoughts?


#2

Welcome to the forums @micheal0424

Given this is an international forum it would help if you say what country you're in. The terms 1009K and W9 mean nothing to me!


#3

If the term 1099k and W9 mean nothing to you then you would not be able to help.
Thanks.


#5

I'm assuming US but I don't have an answer. I'm not sure how a second 1099K would result in double taxing but personally I'd look to consult with a tax professional. Surely it would be worth it.


#6

I had to search the IRS.GOV to make sense for the topic, assuming you're an American. I'm not. :wink:

The 1099-K form PayPal files, as I understand it, is a summary of all the years transactions on your account. 1099-K is a report that IRS can use to check that you don't withhold income that has not been filed by your clients or other payees that is not required to file 1099 forms to the IRS.

The 1099 your client would file, again AIUI, would be a 1099-MISC covering the client's payments during the year.

The W-9 form is required for the client to know if payments for your work should withhold taxes (employee) or not (contractor).

It's all standard procedure for most countries I guess. :slight_smile:


#7

That seems right to me.


#8

I wouldn't be taking us tax law advice from people on the internet who don't even live in the us. Running a business you must be a little smarter than that.


#9

I would have to refer you to my first response, obviously.


#10

I found the answer another place. Just because they file the 1099 when i have already received a 1099 doesn't mean I am required to include it, I only account for the income one time. Their 1099 indicates a payment made, doesn't require to be balanced out on my end. So the short answer is it is okay to complete the W9 knowing that they will be filing a 1099 because I won't be required to include the additional 1099 as income.

I would suggest to people to get an EIN number for your business and/or a fictitious name (or whatever your state calls it) filed so you can submit that information and not directly give your SS#.

This is for the US, if you are in the US you should recognize some of the references, at least the W9 one.


#11

If you posted the same topic in other forum; please referr, or give a link, to that answer.

Crossposting a topic is not well seen on forums, but it's also an opportunity to learn more on the subject. :slight_smile:

Glad you found an answer. That was also the BTW conclusion in my post.

I recommend being more specific in your posts because those filings have different purposes.

While searching the IRS I also found relevant info in a more digestible form on your topic:
What Is IRS Form W-9?
What Is an IRS 1099 Form?
Form 1099-K Decoded for the Self-Employed

I should have posted at least those links in my answer, sorry. :slight_smile:


closed #12

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