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Learning, Sharing, and Teaching => Taxes => Topic started by: wudged on January 29, 2017, 12:55:37 PM

Title: 1099 SSN vs EIN
Post by: wudged on January 29, 2017, 12:55:37 PM
I currently have a full time W2 job, and also receive some 1099 income on the side.  I have a solo 401k setup for this income, which required me to setup a federal EIN.

I have been using my SSN for the 1099 reporting, but am about to have a new client.

Can I give this client my EIN for the 1099, or should I stick with my SSN?  If I can use my EIN, does it make any difference to the IRS?
Title: Re: 1099 SSN vs EIN
Post by: Miss Piggy on January 29, 2017, 01:31:01 PM
I always use my EIN when I give a client a W-9. It feels more business-like to me (and I hope it makes my business seem more legit in my client' eyes). No difference for IRS.
Title: Re: 1099 SSN vs EIN
Post by: jwright on January 30, 2017, 08:09:18 AM
Look at the Form W-9 instructions.  If you are a sole proprietor or single member LLC that is a disregarded entity, then you need to give you social security number according to Page Three Part I.   If you are operating as a partnership or corporation, give your EIN.
Title: Re: 1099 SSN vs EIN
Post by: SeattleCPA on January 30, 2017, 12:22:11 PM
Are you sure that the EIN isn't the 401(k) plan's EIN?
Title: Re: 1099 SSN vs EIN
Post by: Miss Piggy on January 30, 2017, 02:54:52 PM
Quote from: jwright on January 30, 2017, 08:09:18 AM
Look at the Form W-9 instructions.  If you are a sole proprietor or single member LLC that is a disregarded entity, then you need to give you social security number according to Page Three Part I.   If you are operating as a partnership or corporation, give your EIN.

Interesting. I can see how you'd interpret it this way. I also see "If you are a sole proprietor and you have an EIN, you may enter either your SSN or EIN. However, the IRS prefers that you use your SSN."

I'm going to keep using my EIN. If the IRS REALLY doesn't want sole proprietors to use an EIN, why do they give them to us?
Title: Re: 1099 SSN vs EIN
Post by: wudged on January 30, 2017, 06:08:42 PM
Quote from: jwright on January 30, 2017, 08:09:18 AM
Look at the Form W-9 instructions.  If you are a sole proprietor or single member LLC that is a disregarded entity, then you need to give you social security number according to Page Three Part I.   If you are operating as a partnership or corporation, give your EIN.

Thanks, didn't even see this before - points me in the right direction.  Miss Piggy points out that page 3 does indicate I can use either one.

Quote from: SeattleCPA on January 30, 2017, 12:22:11 PM
Are you sure that the EIN isn't the 401(k) plan's EIN?

Yes, the EIN is for my name only.
Title: Re: 1099 SSN vs EIN
Post by: Padonak on March 13, 2017, 10:01:50 PM
A quick question. If i received a 1099 for my SSN (from tradelines) can I apply for EIN and submit it with my tax return? If I do apply for EIN, will it confuse the IRS?
Title: Re: 1099 SSN vs EIN
Post by: Rocketman on March 13, 2017, 10:18:34 PM
As long as you applied for the EIN as a sole proprietorship- it will not confuse the IRS.