Q: Why would a landlord ask a tenant to complete W9 for an escrow account? Who collects the interest, pays taxes?
Escrow account for security deposit. Who collects the interest and who pays taxes on the interest?
A: The bank where the escrow will be opened requires a W-9. No W-9, no account. NJ law requires that a tenant's security deposit be placed in an interest bearing account. The interest earned is split between the tenant and landlord.
A: The security deposit, although help by the landlord, is the property of the tenant. the LL is required to set up a seperate, interest bearing account foir the security and the income is attributable to the tenant. The financial institution will require the SSN andW-9 of the tenant to set up the account.
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