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?

Related Topics:
2 Lawyer Answers
Frank Huerta Jr
Frank Huerta Jr
Answered

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  Day
Eric 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.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.