Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

W-8 Form

What it is:

The W-8 form is a standard IRS form that exempts non-U.S. citizens from specific federal income taxes.

How it works (Example):

Individuals from abroad who live in the United States frequently work as legal residents and invest in the capital markets. Such individuals are not subject to certain IRS regulations by virtue of their status. By submitting a W-8 form to an employer or brokerage house, a non-U.S. citizen may receive exemptions from normal income tax withholdings on payroll and portfolio income (for example, bond interest payments and stock dividends).

Why it Matters:

The income tax liabilities of non-U.S. citizens depend on several factors. A W-8 form does not guarantee tax exemptions, but it should be completed by all qualifying non-U.S. citizens.

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