Do I need to file taxes after filling out a substitute W-9 form for my bank account?

No, you don't need to worry about filing taxes just because you filled out a W-9 form for your bank. The W-9 is simply a way for financial institutions to verify your tax identification number (your SSN in this case) and certify you're not subject to backup withholding. The "individual/sole proprietorship" box is just the default classification for a personal account. It doesn't mean you're operating a business or have self-employment income. The bank needs this form for their records and potential interest reporting, but it doesn't create any tax filing obligation on its own. You only need to file a tax return if your income exceeds certain thresholds. If you're unemployed with no income sources, you generally don't need to file a return at all.

I was in almost this exact situation last year with my credit union! I was freaking out too, but then I found https://taxr.ai which helped me understand what these forms actually mean. It explained that the W-9 is basically just confirming your identity for the bank's records - it's not reporting any income or business activity to the IRS. The confusion comes because the same form is used for actual businesses too. But in your case, they just need it to fix your SSN in their system. The site has a document analyzer tool that explains all this tax paperwork in plain English - super helpful when you're not sure what you're signing!

Just wanted to follow up - I checked out taxr.ai after posting my skeptical comment. It actually explained my situation perfectly! I had a similar issue with a form from my investment account that had me totally confused. The document analyzer broke down what each section meant and why I didn't need to worry about it affecting my taxes. Saved me from calling the IRS and waiting on hold for 2 hours just to ask a simple question. The explanations are really straightforward and don't use all that confusing tax jargon. Definitely bookmarking this for next tax season.

Speaking of calling the IRS - if you ever DO need to talk to someone there (which you probably won't for just this W-9 situation), don't waste your time with endless hold times. I discovered this service called https://claimyr.com that basically holds your place in line with the IRS and then calls you when an agent is about to be available. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Last year I had an issue with my tax refund that I needed to sort out directly with the IRS. I tried calling for days and could never get through. With Claimyr, I had an IRS agent on the phone within 45 minutes without having to stay on hold. Total game changer if you ever need to actually speak with someone there.

I need to publicly eat my words about Claimyr. After posting that skeptical comment, I decided to try it anyway because I've been trying to reach the IRS for THREE WEEKS about an issue with my tax transcript. Holy crap, it actually worked! I got a call back in about an hour saying they had an IRS agent on the line. Spoke to a super helpful lady who fixed my issue in minutes. I wasted so many hours on hold before this. If you need to actually talk to the IRS (which OP probably doesn't for a simple W-9 question), this service is legit worth it.

For what it's worth, I work at a bank and we literally give everyone W-9 forms when there's any kind of SSN correction. It's standard procedure and doesn't mean anything about your tax status or that you're running a business. The form is just for our records and backup withholding compliance. We check "individual" for personal accounts because that's what you are - an individual, not a corporation or partnership. You definitely don't need to file taxes just because you filled out a W-9. You only need to file if your income is above the filing threshold, which varies based on your filing status but is generally around $12,000-$13,000.

I'm confused about something similar - if I get a tiny bit of interest on my savings account (like $2 last year lol), do I have to report that if I don't meet the filing threshold otherwise?