Thread Topic: Receiving Loan Signing Income on Form 1099
Topic Originator: Jenny Ou
Post Date March 23, 2010 @ 6:15 PM |
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Jenny Ou
1 Posts
(Bakersfield, CA)
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I work directly with a mortgage lender for loan signings. I only do about one or two signings a month. Since I work directly with the lender, I collect the entire amount of the signing fee from the lender.
The lender is asking for my social security number (on a W9) so they can issue a 1099 at the end of the year for my signing fees. This is a reasonable request to me but, I don't like giving out my social security number.
Since I only do a few of these signings a year, would it be worth it to apply for an EIN and file the separate return? Would you trust a lender to handle your social security number?
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Joan Bergstrom
187 Posts
(Riverside, CA)
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Definitely get an EIN number!
Several ways to get an EIN number, but the easiest is click on www.irs.gov and complete the SS-4 at the prompt for Forms & Applications.
You can instantly get an EIN number.
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Paul Williamson
103 Posts
(Inverness, FL)
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>>> Since I only do a few of these signings a year, would it be worth it to apply for an EIN and file the separate return? Would you trust a lender to handle your social security number? <<<
First, yes, you should get an EIN, even if it is for just one closing a year.
Second, you would NOT need a separate return, but you would need to include a Schedule C with your personal return. The Schedule C would reflect your EIN and that creates the tie to your 1040, as it is an integral part of your return. (The only time you would need to file a separate return is if you have a full-fledged business that is an S-Corp, LLC, etc. Doing business under your own name as a sole proprietor, a "dba", does not require you to file a separate return.)
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