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[ASK]About W-9 (I hope that is the right code)

Discussion in 'Business & Tax Advice' started by ajeeyunz, Nov 28, 2008.

  1. ajeeyunz

    ajeeyunz Regular Member

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    Hello, I have a question about W-9. If you are joining AC, and make more than $600 for one year, they will ask you to fill the W-9 tax form.

    Since I am not from USA, I have no chance to fill that form. My plan is, I want to ask my friend from USA to make one account under his name, and his real address, so if AC asks for W-9 tax form, he can easily fill it.

    The question is :
    1. Will my friend get trouble if I do that ? My friend seems afraid he will get audited and the auditor could find some strange transaction.

    2. How much is the tax rate ? I read somewhere, it is about 28%.

    I think that is my question, thank you very much ! (If you have any difficulty reading my thread, I am sorry, not a native speaker here. :))

    Thanks !
     
  2. delmages

    delmages Jr. VIP Jr. VIP Premium Member

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    Screw all of that having your friend sign up business. Simply create multiple accounts yourself, link them to your paypal account (you can have 7 or so emails per paypal account) and when you are close to reaching the $600 threshold in any given year, start using a different account. Bada boom bada bing.
     
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  3. xmastex

    xmastex Registered Member

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    well wait so you don't have to pay taxes with this method? i guess you have to pay them anyway, i don't think that if you earn less than $600 you do not have to pay them. Maybe i'm completely wrong. Clear me up as i want to be 100% sure before starting a new project that i have in mind
     
  4. Subject

    Subject Power Member

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    ajeeyunz, its not 600$, its 500$, when you over the 500$ mark, they will issue you the form...
     
  5. java

    java Guest

    In the U.S. you have to declare all income and pay any tax liability on that income. Many people don't report the income if the employer or the person paying doesn't declare the payment, since there is little chance of the IRS auditing or discovering the income.
     
  6. rjj4181

    rjj4181 Newbie

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    Falsifying a document like the W9 is a definite NONO...your friend could end up with a fraud investigation...anticipation of comments - yeah, risk is minimum, but the downside is steep. Follow the other suggestions.

    RJ
     
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  7. delmages

    delmages Jr. VIP Jr. VIP Premium Member

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    My suggestion is only for those who are outside of the US.
     
  8. ajeeyunz

    ajeeyunz Regular Member

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    Okay, so I better make a lot of account rather to involving my friend on my plan ? :)
     
  9. unlimitedpostings

    unlimitedpostings BANNED BANNED

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    Yeah, if you do that, your friend the earnings will be reported by AC to the IRS on his taxes. Then, he has to pay the taxes on it. It's definitely not something I would ever do if I was your friend.

    Just read into creating multiple accoutns if you can.
     
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  10. ajeeyunz

    ajeeyunz Regular Member

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    okay, thank you very much for the suggestion ! :)
     
  11. xmastex

    xmastex Registered Member

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    So:
    <$500: taxes, but do not have to fill a w-9
    >$500: taxes, have to fill a w-9

    am i right? in anyway taxes must be paid.
    and what about the w-8? is it the same thing like w-9 but for non-us people?
     
  12. rjj4181

    rjj4181 Newbie

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    W-9 is not dependent on earnings...you may be asked to provide the W9 up front to provide your Social Security Number. What is dependent on your earnings is whether a 1099-Misc is issued, which reports the earning to IRS ($600 or more).

    RJ
     
  13. joejim

    joejim Registered Member

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    when you finish using those 7 accounts linked to your email what do you do next? Is there a way to withdraw money from paypal anonymously?
     
  14. mikey29

    mikey29 Junior Member

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    I am a american. I heard that you are suppose to do 10 articles a day with ac. I am on my first account, almost at 10 (7 articles a day). If I open second account and a third and so fourth. I cant use my same social on every account. I mean i know there is the option of a corp., but that is expensive.

    What happens to me? Can I just show the tax man my pay pal account or do I need a 1099 or w-9 from a company. I mean I have no probably paying my fair share. I just want to make more than 30 bucks a day.