W9 Form Security Deposit

W9 Form Security Deposit – By state law, the landlord is required to keep your security deposit in an interest bearing account under your name. Without a w9 form, a landlord might refuse to return the tenant's security deposit. The tenant will need the landlord's taxpayer identification number to report this income accurately. W9 is an irs documentation assigned to complete whenever an individual contractor performs a task worth over $600.

Assuming you live in a building with six or more units, or in any building if your landlord voluntarily chooses to hold deposits in interest bearing. The bank requires the w9 form so that the bank can credit and report the accrued interest. Assuming you live in a building with six or more units, or in any building if your landlord voluntarily chooses to hold deposits in interest bearing. Nothing nefarious in what you've described.

The interest earned on this account is taxable, and the irs requires landlords to report it. The w9 is a standard tax form landlords need in order to properly deal with your security deposit, though many of them don't bother with it, says sam himmelstein, a lawyer who represents residential and commercial tenants and tenant associations. New york law requires that the security deposit be put into a segregated trust account, with any interest designated as going towards the tenant.

Correctly setup W 9 and 1099 forms in QuickBooks to avoid IRS notices.