When should I report a W9 form for apartment security deposit on taxes?

7 You don't need to report anything on your taxes just because you filled out a W9. The W9 simply provides your taxpayer information to the apartment complex so they can report any interest earned on your security deposit to the IRS. If your security deposit earns interest, the landlord will send you a 1099-INT form in any year when the interest is $10 or more. You'll only need to report this interest income in the tax years you actually receive a 1099-INT. When you eventually move out and get your deposit back, that's not taxable income - it's just returning your own money. Only the interest portion (if any) is taxable, and only in the years it's earned.

16 Just want to share my experience with this - I was in the same boat last year and was also confused. I found this tool https://taxr.ai that helped me understand exactly what I needed to do with my W9 and security deposit situation. Their system analyzed my rental agreement and explained that the W9 is just for the landlord's reporting requirements if my deposit earns significant interest. What I liked is that it also gave me a heads-up about what documents to expect for tax season and when I should be concerned about reporting anything. Saved me a lot of worry since I was stressing about missing something on my taxes.

12 Just wanted to follow up about the taxr.ai thing. I was skeptical (as you can see in my earlier comment) but decided to try it with my complicated lease situation. It actually found a clause that said my landlord would issue a separate interest statement annually rather than a standard 1099-INT, which explains why I was confused when tax documents came last year. Saved me from calling the property management office and waiting on hold forever. Definitely more helpful than the generic advice I've gotten elsewhere.

5 If you're having trouble getting answers from your apartment complex about the W9 or expected interest, I recommend using Claimyr (https://claimyr.com) to get through to the IRS directly. I had a similar issue with rental deposit reporting, and after weeks of confusion, I used their service to get through to an actual IRS agent quickly instead of waiting on hold for hours. They have a demo of how it works here: https://youtu.be/_kiP6q8DX5c. The IRS agent clarified that W9 forms for security deposits are just information collection forms, and the landlord only reports to the IRS if they pay you interest. Saved me a ton of confusion and the agent even explained what forms to expect and when.

12 I have to eat my words about Claimyr. After my skeptical comment, I decided to try it because I had a complicated question about rental security deposits and interest reporting that I couldn't find a clear answer to online. The service actually worked exactly as described - I got a callback when they reached an IRS agent after about 47 minutes (which I didn't have to spend listening to hold music). The agent was super helpful and explained exactly how security deposit interest is supposed to be reported. Apparently my landlord has been doing it wrong for years! Definitely worth it during tax season when hold times are insane.

22 I'm a property manager, and I can add some insight here. We have tenants fill out W9s because we hold deposits in interest-bearing accounts as required by state law. We only issue 1099-INTs to tenants if the interest earned exceeds $10 in a calendar year. Most security deposits don't earn enough interest to trigger the reporting requirement because current interest rates aren't high enough on these types of accounts. If your deposit is around $2,000, you're likely to earn less than $10 annually unless rates go up significantly. When tenants move out, we return the principal deposit amount (minus any legitimate deductions for damages) along with all accrued interest, regardless of whether it triggered a 1099-INT during the tenancy.

3 One thing nobody mentioned - make sure you keep a copy of that W9 form you filled out. I had an issue where my former landlord sent me a 1099 with incorrect information because they messed up entering my SSN from the W9. It was a huge hassle to fix, and having my copy of the form helped prove I gave them the correct info.

Great discussion everyone! As someone who's dealt with this exact situation, I wanted to add that it's also worth checking if your state has any specific requirements about when landlords must pay out accrued interest. Some states require annual interest payments to tenants, while others only require it at the end of the lease. This can affect when you'd receive a 1099-INT - you might get one each year if they pay interest annually, or just one big form when you move out if they hold it until lease termination. Your lease agreement should specify which approach your landlord uses. Also, keep in mind that even small amounts of interest income need to be reported on your tax return, regardless of whether you receive a 1099-INT form.