turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

mike0424
New Member

If I am receiving a 1099 K from my merchant service provider do I also need to fill out a W9 for a company I do work for? Don't want to pay taxes twice or do extra paper.

Hello,

I have a question regarding 1099 K and a W2. I do digital marketing and use PayPal as my merchant service, because of that I receive a 1099 K each year for the work I have performed. I recently received a request to fill out a W9 from a company I did work for. I do not wish to fill out a W9 with them because they will in turn file a 1099 and I will be paying taxes twice on that income. 

I am correct in denying their request for a W9?

Thank you.

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
DanielV01
Expert Alumni

If I am receiving a 1099 K from my merchant service provider do I also need to fill out a W9 for a company I do work for? Don't want to pay taxes twice or do extra paper.

You should fill out the W-9.  For the company you are working for, this is a legal requirement.  You are correct that they will send you a 1099.  However, if they were paying you through the merchant service, you are not required to enter the information twice as part of your self-employment income, as it is a duplication:  the company states how much they paid you (no matter how they paid you), whereas the 1099-K describes how much you received through the merchant services.  Where these items overlap (the company paid you through the merchant service), you report the amount the company paid you and later deduct the fees you paid the merchant service.  You won't pay extra tax, but the correct tax.  But the company needs your W-9 or they will take out backup withholding (28% of the amount they paid you) to the IRS, which you will be responsible for.

The specific situation in your question does not deal with a W-2.  Form W-2 is for an employee, which at least for this particular company, you were not.  You were a contractor which falls under the category of self employment.  Here is an FAQ with more information on this:  https://ttlc.intuit.com/replies/4771022

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

3 Replies
DanielV01
Expert Alumni

If I am receiving a 1099 K from my merchant service provider do I also need to fill out a W9 for a company I do work for? Don't want to pay taxes twice or do extra paper.

You should fill out the W-9.  For the company you are working for, this is a legal requirement.  You are correct that they will send you a 1099.  However, if they were paying you through the merchant service, you are not required to enter the information twice as part of your self-employment income, as it is a duplication:  the company states how much they paid you (no matter how they paid you), whereas the 1099-K describes how much you received through the merchant services.  Where these items overlap (the company paid you through the merchant service), you report the amount the company paid you and later deduct the fees you paid the merchant service.  You won't pay extra tax, but the correct tax.  But the company needs your W-9 or they will take out backup withholding (28% of the amount they paid you) to the IRS, which you will be responsible for.

The specific situation in your question does not deal with a W-2.  Form W-2 is for an employee, which at least for this particular company, you were not.  You were a contractor which falls under the category of self employment.  Here is an FAQ with more information on this:  https://ttlc.intuit.com/replies/4771022

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
mike0424
New Member

If I am receiving a 1099 K from my merchant service provider do I also need to fill out a W9 for a company I do work for? Don't want to pay taxes twice or do extra paper.

What if I am a s-corporation, do I need to fill out the W9? Thanks.
DanielV01
Expert Alumni

If I am receiving a 1099 K from my merchant service provider do I also need to fill out a W9 for a company I do work for? Don't want to pay taxes twice or do extra paper.

Yes, but in this case you may use your EIN instead of your SSN on your W-9.  But the same "double information" in my answer still applies, it's just that it will be reported on your 1120-S Corporation return instead of the personal return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies