W-8 Form

Written By:
Paul Tracy
Updated October 16, 2020

What is W-8 Form?

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

How Does W-8 Form Work?

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 Does W-8 Form Matter?

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.