Why W-9 is needed for tenant security deposit?

There are several case when W-9 settlement is required. You have to complete the form when you work as independent contractor, inherit property, receive bank interest income etc. One of the possible cases is that you’ll have to complete W-9 form for tenant security deposit. Let’s find out why you have to do that.

What are the reasons for landlord to request the document?

Actually, the whole thing is about banks, who are obliged to ask for the form if the interest is payed to the person who is not a deposit holder. When you lease any property, you may be asked to make a security deposit. The income on it will be payed to you, but the holder is landlord. So, W 9 form for landlord / tenant agreement is required.

It’s used to collect personal data for future taxation purposes. In the end it’ll get to IRS via 1099-MISC. Sometimes you’ll have to complete the document because of deposit update requirements.

How to create the blank and where to send it

The first step is to download W-9 form 2019 fillable on IRS website. The landlord may also provide you with it. Then enter all the data required, including your TIN, name and address. TIN is Social Security Number for individuals. You should also mention whether you’re exempt from backup withholding. Also, sign the document before you’ll file it to the landlord.

A completed W-9 doesn’t have to be sent to IRS. Give it back to the requester. Hand-to-hand delivery is the best way for printable versions. Though you can use other options like post service or secure email. The main idea is to keep all your personal data protected.