Killeen, TX asked in Tax Law for Texas

Q: I work in Kuwait (military contractor) I had to open a salary account & filled out a W9. Will I get a 1099 from the IRS?

I work for UMUC Europe and we fall under a sponsorship company to work in Kuwait. The Kuwaiti bank require us to fill out a W9 when we open our mandatory salary account. What impact will filling out that W9 have on me this tax year? Will that foreign income be reported to the IRS?

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2 Lawyer Answers
Frank Huerta Jr
Frank Huerta Jr
Answered
  • Tax Law Lawyer
  • Fresno, CA

A: The purpose of a W-9 is for a business to properly report payments when it pays more than $600 per year to an individual taxpayer. You will likely receive a 1099 Misc but from the business not the IRS. They will send a copy of the 1099 Misc to the IRS.

Eric Steven Day
Eric Steven Day
Answered
  • Tax Law Lawyer
  • Henderson, NV

A: When a company requires you to fill out a W-9, they typically have you fill out the W-9 so that they have your information to file a 1099 with the IRS for the income that they paid to you. This will affect you for tax purposes because whatever is recorded on the filed 1099 is what you should be filing either in your business return or your Schedule C on your 1040 as an independent contractor. You will be allowed to take any deductions that you incur related to that income on the schedule C or business return that you file (1065, 1120, 1120S), but your Gross earnings will be at least the 1099 that was filed by the company requesting the W-9.

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