Why do I have to fill out a W-9 ?
All US citizens and resident aliens are required to fill out a W-9 when earning additional income. Your W-9 is used to report your earnings and send the necessary tax forms come tax season where eligible. We utilize Paypal to compensate artists for monthly earnings. As an online payments processor, Paypal is required to furnish, directly to the IRS, payment information on artists we pay through Paypal, that meet certain criteria. If you meet that criteria, Paypal will send you a 1099-K directly (through your Paypal account). This applies to both earnings from Artist Shops and Threadless.com.
You can find more detailed information about Paypal’s tax information reporting here:
Tax information reporting for online sellers
How PayPal reports sales to the IRS and sends 1099 tax statements
Regardless of whether you meet the threshold required to automatically receive a 1099 from Paypal or not, it is your responsibility alone to report any income from Threadless and Artist Shops.
Threadless does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. We recommend you also consult your own tax, legal and accounting advisors.