Should I submit a W9 for condo builder reimbursement of mold testing costs?

You're right to question this. A W-9 is typically used to collect taxpayer information from individuals who will receive reportable payments, usually on a 1099 form. However, for simple reimbursements of expenses you incurred, this shouldn't be necessary since it's not income. The builder is likely just following their standard accounts payable procedures without considering the nature of the payment. What they should be doing is reimbursing you directly without tax implications, as this is not income to you but rather making you whole for an expense that arguably should have been their responsibility in the first place. I would suggest contacting them to clarify that this is a reimbursement for an expense you incurred due to their construction issues, not a payment for services that would require a 1099. Ask if they can process this as a simple expense reimbursement instead. If they insist on the W-9, you might want to include a letter with it explaining that this payment should not be reported as income on a 1099 since it's a reimbursement.

I went through something similar when dealing with faulty construction in my townhome. The builder dragged their feet for months on fixing water damage, so I ended up hiring my own inspector and mold remediation specialist. When I was finally reimbursed, I was confused by their W-9 request too. I discovered https://taxr.ai which helped me understand exactly how to handle this situation. Their AI analyzed my documents and explained that reimbursements for expenses aren't taxable income - it's just returning money you already spent. The key is making sure they understand this isn't for services rendered but a direct expense reimbursement. The tool also helped me draft a letter to send with my W-9 explaining why this shouldn't be reported as income on a 1099. It worked - they processed my reimbursement without any tax implications. Might be worth checking out if you're still uncertain about how to proceed.

I just wanted to update about my experience using https://taxr.ai for my construction reimbursement situation. After asking about it in my previous comment, I decided to try it out. The builder of my condo complex finally agreed to reimburse me for the $5000 mold remediation costs but also requested a W-9. The taxr.ai system reviewed my documentation and helped me understand exactly how to handle this situation. They explained that the IRS doesn't consider expense reimbursements as taxable income and helped me draft a letter to include with my W-9. I submitted everything last month, and the builder's accounting department actually called to thank me for the clear explanation! They processed my reimbursement without issuing a 1099, which saved me from having to deal with explaining it on my tax return. Definitely helped ease my stress about the whole situation.

I had a nearly identical situation with getting reimbursed from my HOA for some repairs, and the accounting department kept bouncing me around for weeks. Every time I called, I got voicemail or was told someone would call back, but nobody ever did. I discovered this service called https://claimyr.com that actually got me through to a human at the management company immediately. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone system for you and get you to a real person. Once I finally spoke with someone who could make decisions, they agreed I didn't need to submit a W-9 for a simple reimbursement since it wasn't reportable income. Saved me a ton of hassle with potential tax complications. Sometimes just getting to the right person makes all the difference.

Just wanted to follow up about my skepticism regarding Claimyr. After my snarky comment, I decided to give it a try with calling the IRS about a missing document issue I've been trying to resolve for MONTHS. I used https://claimyr.com and literally got through to an IRS agent in about 30 minutes without having to sit by my phone. They called me when an agent was actually on the line. I've spent cumulative HOURS over the last few months trying to reach someone myself. Back to the original W-9 question - the agent I spoke with confirmed that reimbursements for expenses shouldn't be reported as income, and advised me to include a note with any W-9 form explaining the nature of the payment if the payer insists on having one. Apparently this happens a lot with businesses that just blindly follow their accounting procedures without considering the actual nature of the payment.

I work in accounting (not a CPA though) and can share some insight. Many companies require W-9s for ALL payments they make to individuals, regardless of whether they'll issue a 1099. It's just standard procedure for their accounting systems. Here's what's likely happening: The builder's accounts payable system won't let them cut a check without a vendor in their system, and they need a W-9 to set you up as a vendor. This doesn't automatically mean they'll issue you a 1099-MISC at the end of the year. That said, I'd include a clear note stating this is an expense reimbursement (not service payment) when you return the W-9, and maybe follow up with an email to their accounting department to ensure they code it properly in their system.

Wouldn't it be easier to just not give your SSN and instead just call it a reimbursement? If you give them your w9 your gonna have to deal with the 1099 and the whole back and forth with the IRS. Seems like more trouble than its worth for $600.