I am neither a citizen nor a permanent resident of the U.S, nor have I ever been. (I live in Canada.) I recently tried to open an account with Questrade and was told that I had to file a W9 form because I have an SSN. My question is whether filing this W9 form will trigger any additional reporting to the IRS or associated taxation.
I have a Social Security Number because when I attended college in the U.S. I had to get one to work on campus (only) and to receive a stipend as a Teaching Assistant while working on a graduate degree. However, the SSN card states on it "Not Valid for Employment". I have never filed a tax return with IRS after returning home to Canada from college since I am a Canadian citizen and have lived in Canada for the past 20 years.
My wife is a U.S. citizen and files tax returns, etc., with the IRS every year. She files as Married Filing Separately since I have no reporting requirements to the IRS. I'd like to keep it that way.
So should I be concerned about this W9 triggering any other obligations to the IRS for me personally?
Thanks.
Not a U.S. Tax Person but Required to File W9 for Questrade?
Moderator: Mark T Serbinski CA CPA
You should not file a W-9, since you are not a US person.
File a W-8BEN instead.
All this does is determine your withholding for dividend purposes. Neither triggers IRS tax requirements.
The real question is why they asked about your SSN. Did you smistakenly state you were a US person?
File a W-8BEN instead.
All this does is determine your withholding for dividend purposes. Neither triggers IRS tax requirements.
The real question is why they asked about your SSN. Did you smistakenly state you were a US person?
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Every new Questrade client is asked the question "Do you have a SSN?" I wasn't happy the question was asked because I suspected that it might generate a lot of useless red tape. But there was nothing else in the application that should have prompted this question.
When I phoned Questrade this morning to ask about it, the guy said that the IRS has been "cracking down", I suppose on U.S. tax persons who think they can fail to report to the IRS on their stocks with a Cdn brokerage. I explained that I never have to file with the IRS and should not have to now, so why does the IRS even need to know anything about my dealings with Questrade? It was a futile argument. They don't know what the IRS does with the info, they just need to collect it.
I suspect that if I tell the quy that I want to file a W-8BEN instead of a W-9 he'll say "you must file W-9". So if I did file a W-9, does that change my filing requirement with IRS?
My primary intention in signing up with Questrade is to be able to have stocks in my TFSA and/or RRSP. But given all the hassles for a U.S. tax person having those types of investments, I don't want to become a U.S. tax person. Nor should I need to.
Your description of W-8BEN suggests that it's required for US companies issuing dividends. But if they withhold taxes on a dividend, how would I get the deductions back without filing a return with IRS?
Thanks.
When I phoned Questrade this morning to ask about it, the guy said that the IRS has been "cracking down", I suppose on U.S. tax persons who think they can fail to report to the IRS on their stocks with a Cdn brokerage. I explained that I never have to file with the IRS and should not have to now, so why does the IRS even need to know anything about my dealings with Questrade? It was a futile argument. They don't know what the IRS does with the info, they just need to collect it.
I suspect that if I tell the quy that I want to file a W-8BEN instead of a W-9 he'll say "you must file W-9". So if I did file a W-9, does that change my filing requirement with IRS?
My primary intention in signing up with Questrade is to be able to have stocks in my TFSA and/or RRSP. But given all the hassles for a U.S. tax person having those types of investments, I don't want to become a U.S. tax person. Nor should I need to.
Your description of W-8BEN suggests that it's required for US companies issuing dividends. But if they withhold taxes on a dividend, how would I get the deductions back without filing a return with IRS?
Thanks.
W8-BEN is filed to AVOID having too much withholding. Questrade is obligated to withhold (on non-sheltered accounts) 30% of any US dividend and send to IRS (they hold the stock, remember). By filing W8-BEN, this entitles you to be withheld 10% instead (in non-RRSP accts).
This doesn't apply to you because you are opening an RRSP (which are exempt from withholding), but generally all Cdns are subject to 10% tax on dividends from US stock they hold in investment accts, and this is not refundable. It's claimable as a tax credit on your Cdn tax return.
File W8-BEN, or file nothing. There are many discount brokerages.
This doesn't apply to you because you are opening an RRSP (which are exempt from withholding), but generally all Cdns are subject to 10% tax on dividends from US stock they hold in investment accts, and this is not refundable. It's claimable as a tax credit on your Cdn tax return.
File W8-BEN, or file nothing. There are many discount brokerages.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Re: Not a U.S. Tax Person but Required to File W9 for Questrade?
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