W8 BEN what on earth?

[treppenwitz 78]

3 minutes ago, NikLR said:

Until you're a US resident for tax purposes, aka have an ssn, they can ask for a W8Ben. Once you have an SSN fill out a w9 and update the bank

Yup. But many bankers don't know this and are stubborn.

[Pengunista 221]

4 minutes ago, NikLR said:

Until you're a US resident for tax purposes, aka have an ssn, they can ask for a W8Ben. Once you have an SSN fill out a w9 and update the bank

Ok, so I have ssn and I gave it to them and they want W8 BEN. 

 

[Zoeeeeeee 795]

3 hours ago, Wuozopo said:

 

It has nothing to do with your employment when the bank asks for it. Banks often pay interest on money in the account. They report at the end of the year the total interest paid (on form 1099-INT) and it goes on the tax return and is taxed. Same thing happens when you earn dividends or other investment income. 

 

So for a foreigner, there is a legal requirement that the bank hold out 30% of the interest earned and only put 70% in your account. That's in case you don't file a tax return. The bank is treating you as the standard foreigner because you really have nothing that says you are authorized to remain in the US. You have an I-94 which allows you only 90 days. It's typical of "how do we handle a K1 who is a resident but not really." The bank is not an immigration specialist and is just trying to do their mandated paperwork.

 

i believe the bank would be off the hook if you provided a W-9 on which you provide your SSN, and certify by signing that it is your correct SSN and you are not subject to that 30% withholding. An individual doesn't not need an exemption code. You just state your are not required to have backup withholding. If the bank wants more info about why exempt, have your husband explain that as a person married to a US citizen, the IRS will treat you as a resident alien for tax purposes and allow you to file a joint return even if you lived at the North Pole.( IRS Publication 519) 

 

It's just paperwork. In reality your husband as the primary account holder would have the interest reported to the IRS on his SSN anyway. And even if the bank held out 30% of the interest earned, it would amount to pennies. Interest earned on a checking account is not very high. Now if you also held a big CD at the bank at a higher rate of interest it might be a few dollars held back. Big deal. And they don't keep your money, but send it to the IRS. It's kinda like when an employer holds out money for your taxes. When you file a tax return, it all gets sorted and anything over paid would be refunded. 

Damn @Wuozopo...I kind of expect you to know everything about the process and ins and outs of everything in the UK, I’ve grown used to it now...but then you say something like this and it seems that you just know everything about everything. 🤔👏🏻

 

I’m just going to start tagging you in anything I post, forever. 😆

[Wuozopo 4,285]

32 minutes ago, Zoeeeeeee said:

Damn @Wuozopo...I kind of expect you to know everything about the process and ins and outs of everything in the UK, I’ve grown used to it now...but then you say something like this and it seems that you just know everything about everything. 🤔👏🏻

 

I’m just going to start tagging you in anything I post, forever. 😆

😂 You have to remember I've been here 10 years and have answered every question 10-1000 times. My wife looked up W-8BEN years ago and explained it to me. She's exceptional at comprehending "government-speak". Excellent at taxes too. Tag me as long as it's not about timelines. Not bothered about those anymore. I'm done with USCIS. 

[Zoeeeeeee 795]

13 minutes ago, Wuozopo said:

😂 You have to remember I've been here 10 years and have answered every question 10-1000 times. My wife looked up W-8BEN years ago and explained it to me. She's exceptional at comprehending "government-speak". Excellent at taxes too. Tag me as long as it's not about timelines. Not bothered about those anymore. I'm done with USCIS. 

What about pub quiz questions, can I tag you in those?

14 minutes ago, Wuozopo said:

😂 You have to remember I've been here 10 years and have answered every question 10-1000 times. My wife looked up W-8BEN years ago and explained it to me. She's exceptional at comprehending "government-speak". Excellent at taxes too. Tag me as long as it's not about timelines. Not bothered about those anymore. I'm done with USCIS. 

I wish I was done with USCIS! 😆😆

[NikLR 13,220]

6 hours ago, Pengunista said:

Ok, so I have ssn and I gave it to them and they want W8 BEN. 

 

You may have to provide something that shows you have a US address or just do the w8ben and request the w9 to send later.

[NikLR 13,220]

6 hours ago, treppenwitz said:

Yup. But many bankers don't know this and are stubborn.

Many wont open an account with a w8ben too.  

[Scottish Mernymph 512]

On 5/8/2019 at 10:27 PM, Pengunista said:

See my husbands bank also said that I need to fill up W8 BEN after I gave them my ssn and all the information on my passport.  When we read what W8 BEN is, it doesn’t seem to apply to me. I’m unemployed which we told them. No foreign income to declare and such. We are going to try to call the bank tomorrow to have someone explain to us why we need this form. 

 

@Scottish Mernymph if you don’t mind me asking what bank was asking for that W8 BEN?  Ours was USAA.

Hi Pengunista, I'm not actually certain which bank it is, how terrible is that lol?

 

Thanks to everyone for their input with this,  I'm still trying to get my head around it. I do have my SSN, which the bank also listed as a requirement along with the W8 BEN ......I've just been down the rabbit hole of nonresident alien spouse joint tax returns treating the nonresident spouse as a resident & am more confused than ever......why is this all so bloody difficult?  We just want to keep ourselves right & be able to get on with our life.....We've got enough to be dealing with right now. ....please excuse my frazzled nerves folks!

[Pengunista 221]

43 minutes ago, Scottish Mernymph said:

Hi Pengunista, I'm not actually certain which bank it is, how terrible is that lol?

 

Thanks to everyone for their input with this,  I'm still trying to get my head around it. I do have my SSN, which the bank also listed as a requirement along with the W8 BEN ......I've just been down the rabbit hole of nonresident alien spouse joint tax returns treating the nonresident spouse as a resident & am more confused than ever......why is this all so bloody difficult?  We just want to keep ourselves right & be able to get on with our life.....We've got enough to be dealing with right now. ....please excuse my frazzled nerves folks!

I know right, when I got my ssn I was thinking, ok my husband can now add me to his existing bank account and open another one for both of us also. Everything was fine and then after two days we got an email asking for us to do the W8 BEN. 🤯