Canadian resident w/ US bank accounts

hector · Post by **hector** » Fri Jun 20, 2008 12:35 am

When I moved back to Canada last year, I kept my US bank accounts open, and received interest on them after moving. (Can. citizen; was working on H1B.)

Was my bank supposed to have me fill out a W-8BEN, or any other form? I went to my branch to tell them I was moving, and they didn't ask for anything. But then they also failed to change my address until I noticed and called several months later! So they weren't the most competent bank...

At the end of 2007, I closed the interest-earning US accounts. So I guess the question is: should I have filled out a W-8BEN last year, and if so, do I need to do so now "retroactively"? (I'm filing dual status and have declared all the interest on my return. But I have to include a statement about having closer connections to Canada after moving and I'm wondering if the bank accounts make a difference w/o a W-8BEN.)

Thanks for any help.

nelsona · Post by **nelsona** » Fri Jun 20, 2008 5:53 am

No issue here.

U.S. Banks aren't required to withhold tax on interest.

hector · Post by **hector** » Fri Jun 20, 2008 12:52 pm

Thanks for the help once again, nelsona. I appreciate it.

hector · Post by **hector** » Fri Jun 20, 2008 10:39 pm

Do I need to do a W-8BEN for my 403(b) with Fidelity? I was assuming they wouldn't need it till the year I start to draw money from the account. And they didn't mention the form when I called to change my address. But it's possible the woman I talked to didn't know about this...

So many details surrounding a cross-border move. Sigh.

nelsona · Post by **nelsona** » Sat Jun 21, 2008 1:36 am

All pensions have withholding. There would only be reduced withholding (which is the sole purpose of w-8) if you began periodic withdrawals (ie. at retirement). Until then a W-8 is of no value.