Last Updated 1 year ago

There is no argument about it, no one likes bureaucracy, and no one likes paying taxes, but just like many things in life, we have to do it. Failing to do so will eventually leave you with a big headache when trying to sort it out. 

Let us help you figure out which form is relevant for you with a short introduction about each form, a few tips, and references. If you are a U.S. citizen– even living outside of the U.S.– you need to report your income to the IRS and pay taxes. If you are a non-U.S. citizen living and earning income in the U.S., you will also need to report your earnings and pay taxes.

Two of the forms you may need to fill out are the W8 and W9 forms. You must fill in the correct form and ensure it is done accurately.

Key Takeaways: 

• Use a Form W-8 if you’re a non-U.S. person earning U.S. income, and a W-9 if you’re a U.S. citizen or entity.
• Form W-8 verifies non-U.S. tax status and is typically simple to complete without professional help.
• U.S. citizens and entities use Form W-9 to provide their taxpayer ID when receiving income or opening financial accounts.

W8 vs W9: Which One Do You Need?

First, you’ll need to decide which forms to fill in. Figuring it out is relatively straightforward. Form W8 is intended for all people who are not U.S. citizens or residents who work in the U.S. or earn income from U.S. sources. You may be asked to fill it out by your bank or other financial institutions to confirm that you are not a U.S. citizen or resident. 

Form W8 

There are various versions of Form W8.  When filling out this form, you must declare your country of residency in Part 2. Fill in your active Individual Tax Identification Number (ITIN) in Part 1, line 5. From our experience, the form should be pretty straightforward, but an accountant can assist when there are special treaty benefits that you are including to exempt certain types of income..

Form W9

Form W9 is intended for those U.S. citizens with a Social Security number or Individual Tax Identification Number (ITIN). It is the only form you can fill out to identify yourself. 

You may be asked to fill this out when opening a bank account, pension fund, or investment fund to declare that you are a U.S. citizen. Alternatively, a vendor may ask if they have paid you substantial amounts during the year. The W9 is also intended for use by corporations, U.S. LLCs, U.S. trusts, and partnerships, even if the owners, partners, or beneficiaries are not U.S. citizens. 

The form is pretty simple to fill out, and once again, you should not need an accountant to help you complete it. 

Wrapping Up 

Let us reassure you that you should not be surprised if you are asked to fill out one of these forms, as they are standard practice. If you have any questions or would like to find out whether you may have any other U.S. filing requirements that call for your attention, please feel free to contact one of our advisors, who will be happy to assist you.