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How to Calculate Tax on W-9 Income

By Motley Fool Staff – Updated Apr 29, 2025 at 11:38PM

Key Points

  • Form W-9 collects taxpayer ID for reporting income such as dividends and interest.
  • W-9 income isn't initially withheld; payees must report and pay taxes themselves.
  • Backup withholding at 28% applies if issues like under-reporting trigger IRS action.
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