HELP! My bank sent me a W-9 form to fill out!?

Question

I'm 17 years old, turning 18 in July...and I recently opened a bank account with Chase. I work part-time 3 days a week, and I have no idea what to fill out on this form!! I'm a student and I'm paying for my own education, and my parents were saying they want to make sure I'm "tax exempt." How do I go about this? If possible, could you please give instructions for me to follow to fill out this form? I can't use my account until it's done!

Answer 1

The only reason you have to fill out a W-9 is to verify your U.S. residency.  This is because there is a presumption (under section 1441 of the Internal Revenue Code) that you are NOT a U.S. resident until you establish otherwise.  

If you were not a U.S. resident, the bank would be required to "withhold" (i.e., pay as a tax) a percentage of any interest or other income you earn through the account.  The amount of withholding is up to 30% of the income.

You don't want this to happen, and in any event, you are a U.S. resident.  So filling out the form is no threat to you.

Besides putting in your name and address, you will need to (1) check the box next to "individual/sole proprietor" (2) write in your social security number, (3) check the box for "exempt payee," and (4) sign and date the form.

You do not have to enter "business name," or "employer identification number."  

The "certification" part of the form only means that you are promising you are a U.S. resident and that you are exempt (as a dependent).  Don't worry about all the gobbledygook about "backup withholding" and "withholding agents."   All that matters more to the bank than to you.

This is probably the simplest IRS form you will ever fill out.  Get used to them.  They will get much, much more complicated as you grow more independent.

Answer 2

Form W-9 collects identifying information so that a company who might have to collect witholding income tax can do so.  In this case, Chase may pay interest on your bank account.  Even if they don't, it's probably routine.

You can't *not* return the form.  There's a penalty for failing to provide the requested information.  And, it's pretty innocuous, really: name, address, SS#.  My bank got all of that when I sat down with the associate and opened the account, so I didn't do a W-9.

Carefully read the instructions for "exempt payee" to determine if you can check that box on the form.  You probably can.

The form, with the instructions, can be found at www.irs.gov on the top left hand side of the home page.

Answer 3

Your age and student status don't make you tax exempt.  It's the amount of money you make in a year.

For the W-9, fill in your name, address, city, state, zip code and social security number.  Fill in your account number if you have it handy - it will make it easier for the bank since they won't have to look it up - but if you don't have it handy, leave that line blank.  Check the box for individual/sole proprietor, you are an individual.  Check the "exempt payee" box - that doesn't mean that you are tax exempt, just that you aren't required to have the bank withhold taxes from your interest.

Answer 4

Banks are required to have documentation on your social security number, otherwise they have to take taxes out of any interest you earn.  Fill in your personal info, sign, date & mail back.  If you don't the worst that will happen is that they will hold taxes out of your interest income & you claim it on your tax return at the end of the year.  No big deal either way.

This will NOT effect being an independent for education purposes.  You establish that when you file your income taxes at the end of the year (if appropriate).

Answer 5

The following link has the form and the instructions for filling it out.  Hope this helps :)

http://www.irs.gov/pub/irs-pdf/fw9.pdf?p...