Solved: W9 Form
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mikjon
Returning Member

W9 Form

Hi I provided video footage to an insurance company that requested it for a claim they were processing. I charged 25.00 for this service, they then sent me a W9 form to fill out and return to them. Am I correct in my understanding that I can disregard this since it was only for 25.00? 

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Accepted Solutions
rjs
Level 15
Level 15

W9 Form

No, you can't disregard it. It's not clear whether you want to disregard the income or disregard the W-9.


You have to report all your income on your tax return, no matter how little it is. Even if it's only $25 you have to report it. If that is your only self-employment income for the year, you won't have to pay any self-employment tax, but you still have to include the $25 in your total income that you pay income tax on.


It's not clear whether you already filled out the W-9 and gave it to the insurance company. They probably won't pay you unless you give them the W-9. They need to have your Social Security number or EIN in case they do more business with you and have to send you a 1099.

 

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2 Replies
rjs
Level 15
Level 15

W9 Form

No, you can't disregard it. It's not clear whether you want to disregard the income or disregard the W-9.


You have to report all your income on your tax return, no matter how little it is. Even if it's only $25 you have to report it. If that is your only self-employment income for the year, you won't have to pay any self-employment tax, but you still have to include the $25 in your total income that you pay income tax on.


It's not clear whether you already filled out the W-9 and gave it to the insurance company. They probably won't pay you unless you give them the W-9. They need to have your Social Security number or EIN in case they do more business with you and have to send you a 1099.

 

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Carl
Level 15

W9 Form

I assume the insurance company you're dealing with here is not *your* insurance company, and/or you have made an insurance claim against an insurance policy of another. If so, the insurance company's request for your SSN/EIN on the W-9 is valid and they may not be required to pay out on your claim until you complete the W-9 and return it to them. Therefore, you can fully expect to receive some type of tax reporting document for the payout next year, which you will be required to report on your 2020 tax return.

This does not mean the insurance payout is taxable income to you. But it very well could be. It just depends on what the payout is for.

 

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