I am an American citizen but have never lived in the US. Do I need to fill a W8-BEN or a W-9?
Who is required to fill out a W8?
What is W8? Form W8, W 8BEN or W8 form is used by non-resident aliens who do work and/or make income in the U.S. or by foreign business entities who make income in the U.S. If you’re a legal citizen of the United States, at no point will you have to worry about filling out the form.
Should I fill w9 or w8ben?
W-9 An entity or individual that is a resident in the US for tax purposes. W-8BEN An individual who is not a tax resident in the US and is the beneficial owner of income. Not relevant for entities. W-8BEN-E An entity that is not a resident within the US for tax purposes and is the beneficial owner of income.
Do I need to complete a W 8BEN form?
Is Form W-8BEN Required? Yes. Form W-8BEN is required to be filed with withholding agents, payers, and FFIs by non-resident alien individuals who may be subject to withholding of U.S. taxes at a 30% tax rate on payment amounts received from U.S. sources, regardless of their ability to claim a withholding exemption.
Who needs to fill out a w9?
Employers who work with independent contractors must provide them with a W-9 form to fill out before starting work. There are specific criteria for who is classified as an “independent contractor” and will need to fill out a W-9 form.
What is the purpose of a W8-Ben form?
The W-8BEN is an Internal Revenue Service (IRS) mandated form to collect correct Nonresident Alien (NRA) taxpayer information for individuals for reporting purposes and to document their status for tax reporting purposes.
Why do you need a W8 form?
Form W8-BEN, Certificate of Foreign Status of Beneficial Owner for U.S. Tax Withholding, is used by a foreign person to establish both foreign status and beneficial ownership, and to claim income tax treaty benefits with respect to income other than compensation for personal services.
Can I refuse to fill out a W9?
Yes, you can refuse a request to fill out the W-9 but only if you are suspicious as to why a business has made the request. Be wary of filling out the W-9 if the business does not have a legitimate reason to ask you to fill it out. If you are a full-time employee, it’s not necessary to fill out a W-9.
Do I have to pay taxes if I fill out a W9?
In general, income that results from a W-9 arrangement is not subject to IRS withholding. Rather, it is the payee’s responsibility to claim the income on his or her tax return, and to pay any appropriate taxes.
Is W9 required by law?
By law, you are only obligated to provide a W-9 to parties that intend to pay you interest, dividends, non-employee compensation, or any other type of reportable income. If someone unexpected asks for a W-9, ask them why they need it.
What’s the difference between an I 9 and a W 2?
The difference between I9 and W9 is preliminarily based on the purpose that they are used for. The form used for employee verification for federal government purposes in the United States is the I9 form while the form filled by third party companies such as independent contractors is known as the W9 form.
Why do I need a W9 form?
US financial institutions ask you to complete Form W9 in order to obtain your personal identifying information (name, address, tax ID) to report income paid to you to the IRS, such as interest, dividends, capital gains, cancellation of debt, royalties, rents, etc. or income paid by you to the institution, such as
Should I claim tax treaty benefits?
You must file a U.S. tax return and Form 8833 if you claim the following treaty benefits: A reduction or modification in the taxation of gain or loss from the disposition of a U.S. real property interest based on a treaty. A change to the source of an item of income or a deduction based on a treaty.
Why did my bank send me a W-8BEN form?
Those banks may request that their clients provide an IRS Form W-8BEN (for individuals) or Form W-8BEN-E (for entities), which are used to confirm non-US tax residency status.
How do I fill out a w8ben form in Canada?
How to Fill Out and Read Form W-8BEN
- Line 1: Provide your name or your business name.
- Line 2: Provide your country of citizenship.
- Line 3: Enter your permanent residence address.
- Line 5: Enter your U.S. tax identification number.
- Line 6: Enter your foreign tax identifying number.
Do Canadians need to fill out a W-8BEN?
A W-8BEN form is a tax document used to certify that your country of residence for tax purposes is outside of the United States. It is required because of an intergovernmental agreement between Canada and the U.S. which obligates Canadian Financial Institutions to provide this information.
Do Canadians need FTIN?
If you are a Canadian living in Canada YOU DO NOT NEED THIS. Line 6: Foreign Tax Identification Number – This is your Canadian Social Insurance Number (SIN) Line 7: Reference Number – Not required Line 8: Date of Birth – Self explanatory but remember to fill it out.
Does Canada use w9 or w8?
The purpose of this document is to know information about income tax. This is a request for an identification number and taxpayer certificate in which Americans provide their social security number and other identification information to their new employer.
What is the equivalent of the w9 in Canada?
Form W-8BEN
Form W-8BEN allows Canadians, and other foreign contractors from countries with similar treaties with the U.S., to claim exemptions or special withholding rates.
What is the international version of a w9?
If you are a foreign person, do not use Form W-9. Instead, use the appropriate Form W-8 (see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities).
How do I fill out a W-8BEN E form?
It has most of the required fields, but they are quite easy to fill in.
- Name of your organization. Just write your full Company name.
- Country of incorporation of your organization. …
- Name of a disregarded entity, receiving the payment. …
- Your Entity Chapter 3 Status. …
- Your entity FATCA status. …
- Permanent residence address.
Is there a W-9 equivalent for non US based subcontractors?
W-8BEN is the equivalent of a W-9 for foreign contractors.