My Canadian wife is not a U.S. person, but recently spoke at an academic conference in the U.S. The conference has offered to reimburse her for expenses. They initially asked her to fill out a W-9 form, then said that in fact she should go and find the appropriate W-8 form.
Since she was being reimbursed for services, shouldn't this really be a situation for form 8233?
And either way, do I have it correct that she has the right to reduce the withholding tax to 10% on the basis of the Canada-U.S. Treaty, plus further reductions for a daily personal exemption? And that she would have to apply for an ITIN to do this?
W-8BEN vs. 8233 for NRA speaking at a conference
Moderator: Mark T Serbinski CA CPA
As a Cdn resident with no fixed base in US, she should have 0% witheld. I'm not sure where you get the 10% and daily amount, since she is not taxable at all.
W8-BEN should do the trick, although form 8233 is the better form (but does requires ITIN). Whatever suits the payor.
The goal is simply to have no tax withheld. Any that is withheld would require 1040NR be filed. Worry about ITIN at that time.
W8-BEN should do the trick, although form 8233 is the better form (but does requires ITIN). Whatever suits the payor.
The goal is simply to have no tax withheld. Any that is withheld would require 1040NR be filed. Worry about ITIN at that time.
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Thanks -- I was getting the 10% from article XVII.1 of the Canada-U.S. tax treaty, on "personal services". Is it because it says "on account of tax liability" that it would not apply, or...?
Also, the reason I turned to 8233 was because the W-8BEN instructions say not to use the W-8BEN if "You are a nonresident alien individual who claims exemption from withholding on compensation for independent or dependent personal services performed in the United States. Instead, provide Form 8233, Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, or Form W-4, Employee’s Withholding Allowance Certificate."
Am I misconstruing an appearance at a conference as "personal services"?
Also, the reason I turned to 8233 was because the W-8BEN instructions say not to use the W-8BEN if "You are a nonresident alien individual who claims exemption from withholding on compensation for independent or dependent personal services performed in the United States. Instead, provide Form 8233, Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, or Form W-4, Employee’s Withholding Allowance Certificate."
Am I misconstruing an appearance at a conference as "personal services"?
Article XVII was repealed a few years ago, besides it would not apply because of (old) Article XIV.
New Article VII Business profits is the correct reference, which gives the same protection as old XIV.
They want to give her money, they've asked for a W8 to avoid any withholding. Let 'em.
New Article VII Business profits is the correct reference, which gives the same protection as old XIV.
They want to give her money, they've asked for a W8 to avoid any withholding. Let 'em.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing