I’m doing some consulting work (as an individual) for a US company and they sent a W-9 form for me to fill out. My question is whether I can claim Exempt Payee - from the backup withholding.
I’ve done work for this company in the past and never had anything withheld. I always claimed it on my taxes. But it has been about 5 years since I did anything for them.
This is a relatively small job - about 5k. The work is a set fee for one contract, and not hourly pay.
Can I claim exemption from the backup withholding as long as I claim it on my taxes?
You don’t have to be “exempt” to NOT be subject to backup withholding. When you sign the W9 you certify that:
“I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal
Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has
notified me that I am no longer subject to backup withholding”
As long as you meet ONE of those three criteria, you will not have anything withheld.
