Form W-9 – as the main instrument for settling relations between investors and employees

Every resident of the United States, no matter living in Canada or Texas, is obliged to answer himself: once a year, file a imposition return and pay charges.

Do all self-employees must pay cess in US?

And it is important whether you are in US more than 180 days a year (you are a cess resident). If you live most of the year in, for example, France, and just go to America to have a business trip for a couple of months a year – you submit contributions only in France. After all, if your country and US have an agreement on the avoidance of double taxation (as with France), then even if you earned something while in the US, you will be recognized as exempt from paying contribution.

Unfortunately, if you are a citizen, for example, Uganda – you will be required to pay charges in the United States (on income received in the United States) and in your homeland (on your entire annual income). Tax classification includes:

  • federal (all US residents pay them);
  • state;
  • local (various additional cess established by the local government of districts and cities).

Who collects taxes?

All contribution matters in the United States are handled by the Federal IRS (Internal Revenue Service).

They have everything on the site current documents, forms and explanations. Another thing is that there are so many subtleties in filing charges (an ordinary man in the street rarely encounters them, but it happens) that you may not limit yourself to a website: there is a special profession “contribution consultant” who understand all the points and substitute of thousands and thousands of rules and special cases.

If you have a difficult case, you will be taken to the office of a charge consultant. If you have a simpler case – you can make a declaration yourself, or (which is many times simpler) use third-party sites like TurboTax or TaxAct for this.

The way of declaration’s submission

It is served at the beginning of each year: from January 1 and the deadline is April 15. You just need to choose a cess form (there are several of them, depending on your situation), count a little on the calculator, fill in W-9 form, attach some documents, if necessary, and send it to the IRS.

You can print out and fill W9 online, and send it by mail (and so do many people still do), or you can submit it electronically on the IRS website, or you can use the same numerous services like PDFFiller or TaxAct (there are many different), where they will also explain everything to you in steps, take it by the hand and navigate through each field of these incomprehensible forms, everything at the end will be filled out and sent.