When should I report a W9 form filled out for apartment security deposit on taxes?
So I just moved into a new apartment last month and as part of the leasing process, the property management company had me fill out a W9 form because they said they keep the security deposit in some kind of interest-bearing account. This is the first time I've had to fill out a W9 for renting! My security deposit was $1,750 and I'm planning to stay here for at least 3 years. I'm getting my tax stuff together for next year and realized I don't know if I need to include this W9 information when I file my 2024 taxes in a few months, or if I only need to worry about it when I eventually move out and potentially get interest from the security deposit? Anyone know how this works with security deposits and W9 forms for tax purposes?
21 comments
Join the conversation
Natalie Adams
You don't actually "file" a W9 with your tax return. The W9 is just a form that your landlord uses to collect your information so they can report any interest earned on your security deposit to the IRS if necessary. If your security deposit earns more than $10 in interest during the tax year, your landlord should send you a 1099-INT form showing the interest amount. That's what you'd report on your tax return as interest income. Since you just moved in during November 2024, it's unlikely you'll earn enough interest to receive a 1099-INT for the 2024 tax year.
0 coins
Elijah O'Reilly
•Does this mean the landlord keeps the interest earned on the security deposit? Or do they give that back to the tenant when they move out? I've never had a landlord ask for a W9 before and I've rented for years.
0 coins
Natalie Adams
•It depends on your state laws. In some states, landlords are required to pay tenants the interest earned on security deposits. In other states, landlords can keep the interest. You should check your lease agreement or your state's landlord-tenant laws to see what applies in your situation. As for why you haven't seen this before, many landlords don't bother with the paperwork of W9s and interest reporting for small security deposits since the interest earned is often minimal. Your new landlord is just being more thorough with their documentation.
0 coins
Amara Torres
This happened to me too last year and I was confused at first. I used https://taxr.ai to upload my lease and check if I needed to report anything related to my security deposit. The system analyzed my documents and confirmed that I didn't need to include anything on my tax return unless I received a 1099-INT from my landlord. Apparently, the W9 is just so they have your info on file for potential future reporting.
0 coins
Olivia Van-Cleve
•How accurate is this tool? I've got a bunch of rental properties and some complicated tax situations this year. Would it help figure out what forms I need for all the different income streams?
0 coins
Mason Kaczka
•Did it explain why they need a W9 at all? My landlord never asked for one and I've been renting for like 8 years. Seems fishy that they want your SSN.
0 coins
Amara Torres
•The tool is actually really accurate for rental situations. It can identify different income streams and tell you which forms you'll need based on your specific scenario. I was impressed with how detailed the explanations were. The W9 request is legitimate - landlords who keep security deposits in interest-bearing accounts need your SSN because they're legally required to report interest earnings to the IRS if they exceed certain thresholds. It's not fishy, just proper tax compliance on their part.
0 coins
Mason Kaczka
Just wanted to update that I was still concerned about giving my SSN to my new landlord, so I used taxr.ai like someone suggested. Turns out it's completely normal for property management companies to request W9 forms for security deposits. The tool showed me the relevant tax code sections and explained that I only need to report interest if I receive a 1099-INT. Since my deposit is pretty small, I probably won't get much interest anyway. The peace of mind was worth it!
0 coins
Sophia Russo
Similar situation happened to me but with a twist - my landlord never sent me any tax forms after I moved out even though I filled out a W9. Tried calling the IRS for clarification and spent HOURS on hold. Finally used https://claimyr.com which got me connected to an IRS agent in about 15 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that I only needed to report security deposit interest if I received a 1099-INT form showing interest income. If you don't receive anything, you likely didn't earn enough interest to require reporting (usually $10+ threshold).
0 coins
Evelyn Xu
•How does this service work? Do they just call the IRS for you or what? Seems weird that someone could get you through faster than you could yourself.
0 coins
Dominic Green
•This sounds like a scam. Nobody can get you through to the IRS faster. They probably just charge you money to wait on hold themselves. Did you have to pay for this "service"?
0 coins
Sophia Russo
•The service uses a system that navigates the IRS phone tree and waits on hold for you. Once they reach an agent, you get a call connecting you directly. It's like having someone wait in line for you. I was skeptical too initially, but it's legitimate. They use technology to monitor the hold queues and call at optimal times. I didn't have to share any sensitive tax information with them - they just facilitated the connection to an IRS agent who then helped me with my question.
0 coins
Dominic Green
I need to eat my words. After posting that skeptical comment, I decided to try Claimyr myself since I've been trying to reach the IRS about my refund for WEEKS. Not only did it work, but I was connected to an agent in about 20 minutes. The agent was able to confirm that my refund was being processed and gave me an estimated date. Honestly couldn't believe it worked so well after all the frustration I'd been through trying to get through on my own. Definitely recommend if you need to actually speak to someone at the IRS.
0 coins
Hannah Flores
Just FYI - I'm a property manager and we require W9s for all security deposits. The reason is that in some states (like mine), we're required by law to keep security deposits in interest-bearing accounts AND return that interest to tenants. The W9 lets us report that interest to the IRS when necessary. If the interest is under $10 for the year, we don't have to send a 1099-INT, but for longer tenancies with larger deposits, it can add up. When you move out, you'll get your deposit back plus any interest it earned (minus deductions for damages of course).
0 coins
Jordan Walker
•Thanks for explaining this! So just to confirm, I don't need to do anything with my 2024 taxes regarding the W9 I filled out, right? I only need to report interest income if I get a 1099-INT form in the future?
0 coins
Hannah Flores
•That's correct. You don't include the W9 with your tax return at all - that's just for the landlord's records. You only need to report interest income if you receive a 1099-INT showing the amount of interest earned, which would happen if you earned $10+ in interest during a tax year. Since you just moved in during November 2024, it's highly unlikely you'll have earned enough interest to receive a 1099-INT for the 2024 tax year.
0 coins
Kayla Jacobson
The answers here are mostly right but missing one detail - if you earn ANY interest on your security deposit, technically you're supposed to report it as income even if you don't get a 1099-INT. The $10 threshold is just for when the financial institution is required to send the form, not when you're required to report the income.
0 coins
William Rivera
•But how would you even know how much interest you earned if they don't send you a form? Should you just call and ask?
0 coins
Mateo Rodriguez
•@Kayla Jacobson is technically correct about the reporting requirement, but practically speaking, most people don t'track small amounts of interest income that don t'generate tax forms. If your landlord is following proper procedures and you re'earning reportable interest, they should provide you with documentation of the amount when you move out or at year-end. You could ask your property manager for an annual statement showing any interest earned on your deposit if you want to be completely thorough with your tax reporting.
0 coins
AstroAlpha
Great question! I went through something similar recently. The W9 is just for the landlord's records - you don't file it with your taxes. Think of it like giving your employer your SSN for payroll; they need it to potentially report income to the IRS, but you don't submit the W9 itself. Since you moved in last month, you'll likely earn less than $1 in interest for 2024 (assuming a typical savings account rate), so you probably won't get a 1099-INT this year. Even if you do earn interest, you'd only report it when you actually receive documentation showing the amount earned. For future years, just keep an eye out for any 1099-INT forms from your property management company in January. If you get one, report that interest amount on your tax return. If not, you're all set!
0 coins
Sunny Wang
•This is super helpful, thank you! I was definitely overthinking this whole situation. The analogy about giving your employer your SSN makes it much clearer - it's just for their records in case they need to report something later. I feel much better knowing I don't need to worry about including anything on my 2024 taxes since I just moved in and won't have earned much (if any) interest yet. I'll just keep an eye out for any 1099-INT forms in future years like you mentioned.
0 coins