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I did siding work for a man he paid me $ 9100.00 by a personal check after the job was finished. I am self employed. He received an insurance claim he got for storm damage. He also had other damage that I did not do the work on. (windows, landscaping, etc). I only did siding repair. He called me last week and said his mortgage company would not issue him the small amount of remaining money from his claim until he got a w-9 from me. I am a little uneasy about this. First off, every time I have gotten a 1099 from a company it has been when an insurance draft is made to both myself and the homeowner. I didnt think I could get 1099’d by a third party who did not pay me– they only reimbursed him. I know he hasnt had all the work completed and wants to either put the $ $ in their pocket, or do it themselves. I am afraid that instead of paying taxes on only what they paid me, I am now going to get a 1099 for much more that I actually got paid. I have nothing to do with the other work and dont want to be stuck paying taxes on more than I got. I am afraid his mortgager thinks I recieved teh entire amount of their claim(which is probly several thousand more than I got) Why would the mortgage company ask for w-9 from me(and can they legally) if they are not actually the party that paid me. I have no problem sending back something to the mortgage co. if they mail it to me, but very uneasy about giving my social security number to a homeowner who prints it online.Especially since he is not really being honest to the mortgage company about the other work not being done. I have no way of contacting their company. Can I get in trouble for not giving the w-9 to him? What is backup withholding mean? His mortgage company was not the actual payer. Should I take a chance and give it to him? What should I do?
Thx

1 Thought on Do I have to fill out a w-9 and give to a customer who I did siding work for?
  1. Reply
    MeInUSA
    August 13, 2012 at 1:14 pm

    You can give him the W-9 .. it just provides your tax id # .. if he incorrectly reports what he paid then he has a problem. To cover yourself I would tell him you need to give him an invoice together with the W-9 and have a copy where he signs it and acknowledes that he paid you with check # … That way you have proof of what exactly you were paid … if you get 1099’d with something diffrent then contact the person sending that to you and send a copy of the invoice and insist that they correct it. I would tell him after he has given you the signed copy of the invoice that he needs to ensure that you do not get a 1099 for any more than you were paid since you have a receipt to prove how much you were paid. Be sure to report that income so you don’t have problems..

    The question about if you HAVE to give it to him…the answer is NO. Provide an invoice and thats all he needs .. The insurance company probably wants to make sure he did not pocket the money ,,, he could have them call you to verify the invoice.

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