Should I fill out a W-9 form for money I received from my insurance company for home repairs?
My insurance company sent me a check for repairs on my home. Do I need to fill out a W-9 form for my mortgage company?
Hi! Thanks for writing! I’m not sure if “W-9” is the right name of the form you are asking about. Investopedia defines that form in this way: “When a business pays an independent contractor $600 or more over the course of a tax year, it is required to report these payments to the IRS on an information return called form 1099-MISC. Businesses use the name, address and Social Security or tax identification number from form W-9 to complete form 1099-MISC.” In your case, you are a home-owning person, not a business, who is hiring a company or contractor to do some work at your house. You’ll pay that business just like you’d pay any other company or store for services or merchandise – no tax forms need to be completed (just be sure that the company you use has a current Certificate of Insurance and good references; also, you shouldn’t need to pay the entire amount upfront and should reserve complete and final payment until after the work is completed).
I wonder if you are maybe actually asking if you need to pay taxes on the money that the insurance company provided to repair your home? If that is the question, then no you don’t need to pay tax on that money since you paid homeowners insurance premiums in order to get that reimbursement. It is not considered taxable except in a few odd circumstances.
If you are wondering if the mortgage company needs to know the business information of the contractor who did the repairs, then also that probably isn’t necessary. The insurance company sent you the money and now you need to find a company to do the repairs. Then you’ll pay them directly after the repairs are completed. The company you hire takes care of all the tax-related issues with regard to processing their payments. The insurance company usually doesn't need that info.
So at this point, you likely have no tax-related requirements or need to fill out more forms. Please write back to us if you have more questions!