Why does Ritual need me to fill out a W-9 form – I already report my sales from Ritual on my income tax return?
- The W-9 certifies that you are not subject to backup withholding tax and that you are responsible for paying your own taxes
- Should your gross payments exceed $20,000 (with more than 200 transactions), a 1099-K will be issued to you
- The completed W-9 is used by Ritual to fill out the 1099-K form, if applicable.
- The 1099-K form is used to report the payments on orders that flow through Ritual.
- The 1099-K will be filed with the IRS and will be used by you when you prepare your tax return at the end of the year to ensure completeness.
- You will only report Ritual sales once.