@LolaG wrote:
I applied for the grant due to rare medical disease. It is a legit National organization. Nothing else was required. I was picked with others that applied. They sent me a request to fill out a W9 before they send the money. I thought W9 was for workers, contractors or freelancers. I don’t want to fill out the incorrect form. I think they are using it for their reporting. I agree they are leaving it up to me to figure out my taxes. Thanks in advance. Does this help with more info?
In general, a "business" must issue a 1099 of some kind, if they pay more than $600 to another person or business. The W-9 is used to collect the SSN of the recipient before issuing the payment. The charity's treasurer or bookkeeper is probably following a policy of asking for a W-9 from everyone they do business with, and leaving it up to the individual recipient to determine if the payment is taxable or not. The charity can get in trouble for failing to issue a 1099 when it is required, but they don't get it trouble if they issue one when it is not required, so they are covering their own backsides.
You likely won't get a payment if you refuse to return the W-9.
You would then expect to get a 1099-MISC by January 31, 2025 (if the payment is made before 12/31/2024). Since a gift of this type is not taxable to you, there is a way to zero out the income when you file your tax return.
