W8-BEN or W9? Very confused

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rsargant
Posts: 155
Joined: Wed Jan 18, 2006 1:37 am

W8-BEN or W9? Very confused

Post by rsargant »

Hi,
We are canadian citizens presently working in U.S on TN/L1 visa's.
We left behind two rrsp accounts when we moved down in 2005. Fidelity Canada has notified us that since our account has a U.S jurisdiction, they are required to have a W8-BEN or W9 on file.

They seem to think we should be using W8-BEN, but I don't think that is correct since we are resident alien's for tax purposes in the U.S.
It doesn't make sense to me to be filling in a W8-BEN but entering a U.S address on the form.

Should we just use the W8-BEN and put a canadian address on there or should we be using W9?

I don't want them to do anything strange with our RRSP acounts, which I have been reporting correctly to IRS since moving down.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

W-9
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
cfn2007
Posts: 73
Joined: Sun Nov 25, 2007 9:14 pm

Post by cfn2007 »

As I understand it, the W8-BEN and W9 both serve essentially the same purpose -- to reduce the withholding tax on U.S. securities. I'm pretty sure the W8-BEN reduces the tax on US securities to treaty levels (e.g. 15% on US dividends vs. 30% default rate).

Do the W8-BEN (for Canadian residents) and W9 (for US citizens and/or residents) accomplish the exact same reduction in withholding rates (e.g. 15%) or does the W9 eliminate withholding entirely (since those filers are required to file a 1040 anways)?

Thank you.
nelsona
Posts: 18677
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

W-9 elimintes all US withholding.
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
rsargant
Posts: 155
Joined: Wed Jan 18, 2006 1:37 am

Post by rsargant »

Great.
Thanks for the help.
I'll send them a W-9 with a short explanation...
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