Bank requested a W-9 during AOS but before EAD?

[AOSandConfused 0]

Hi Guys,

I'm slightly confused here and wanted to know if any one on the forum has had a similar experience.

So some background -

Originally from the UK & inherited property that I consequently sold and put the finances into a savings account shortly before I left the UK. I do have a US bank account which im currently living on (there are a number of reasons i've not transfered the money over yet mainly due to awful exchange rates and trying to higher priorities in moving!).

I'm newly married to a US citizen - past the K1 visa process and currently in the AOS process. I've been in the U.S for 2 months and I don't have EAD nor AP yet (and obviously no green card), so am obviously not working.

So last week I phoned my UK bank and checked on details such as the updated (US) address and my new mobile number (again US).

Today I received an email from them (im guessing automated), referencing US Tax and requiring a Social Security number (which I have) a TIN (Tax Identication number - I dont have), and various other details.

Obviously this is so the IRS can tax based on a US residents net-worth however during the Adjustment of Status period I assumed that filers are exempt til they receive work-auth?

I've notified my bank several times of the situation (its a major bank with branches in the US and UK) but im acuetly aware that bank staff wont be experts in immigration matters, and they dont really have a facility for this sort of situation.

I obviously want to stay fully compliant but at the same time dont want to be taxed if im exempt as im burning through enough cash as it is! (first time since university i've not worked!).

To confirm - I am going to be seeking professional opinions from an accountant but just wanted to see other members experiences in this stuff first!

Thank you so much for your time and any help - its appreciated!

[Darnell 8,478]

is strange they won't accept just yer SSN but

can you wait until the EAD card is in your hand?

Edited June 30, 2015 by Darnell

[Nich-Nick 3,354]

Hi Guys,

I'm slightly confused here and wanted to know if any one on the forum has had a similar experience.

!

W-9 is normal and required. You are not going to be taxed on the money you transfer. Once in the US, and that money earns interest...that interest is considered income reported on your 2015 tax return.

So say your transfer over $25,000.

And maybe by the end of the year, your interest earned is $5.00.

You report $5.00 to the IRS as taxable income.

The bank will also report to you (on a 1099-INT) that they paid you $5.00 interest, as well as report the same to the IRS.

The bank must collect a W-9 from you where you sign off that you have given them your correct name and SSN. They report your $5.00 to the IRS on the name and SSN your provide to them.

Not a big deal issue to you really. just a paperwork requirement the bank is forced to do.

Also if you have a SSN, you do not require an ITIN.

[KayDeeCee 4,893]

~ Moved from AOS from Family Based Visas to Tax and Finances During US Immigration ~

[imcoming 21]

My circumstances are similar to the OP but my new US bank account that I am now a join account holder with my wife is asking me to fill out a W-8BEN (Certificate of Foreign Status of Beneficial Owner for US Tax Withholding and Reporting), not a W-9.

Anyone have nay experience of this form?

In the instructions it says DO NOT fill out this form if you are a US Citizen or other US person including a resident alien individual.

I don't know if I'm classed as a non resident alien or resident alien whilst I'm in AOS. Anyone know? I have an SSN.

Also I don't know if myself or my wife is classed as the beneficial owner for purpose of the form?

The tax form instructions are pretty confusing (of course), perhaps i should just fill it out and send it back, see what happens...

[Nich-Nick 3,354]

My circumstances are similar to the OP but my new US bank account that I am now a join account holder with my wife is asking me to fill out a W-8BEN (Certificate of Foreign Status of Beneficial Owner for US Tax Withholding and Reporting), not a W-9.

Anyone have nay experience of this form?

In the instructions it says DO NOT fill out this form if you are a US Citizen or other US person including a resident alien individual.

I don't know if I'm classed as a non resident alien or resident alien whilst I'm in AOS. Anyone know? I have an SSN.

Also I don't know if myself or my wife is classed as the beneficial owner for purpose of the form?

The tax form instructions are pretty confusing (of course), perhaps i should just fill it out and send it back, see what happens...

That form is about holdbacks of interest paid to foreign persons. The rate is supposed to be 30% for foreign residents. So instead of paying that $5.00 interest into your account, they would be required to hold back $1.50 if you were a foreigner.

As a K1, right now you are neither fish nor fowl in immigration. You have a 90 day entry and nothing more. This form is not about immigration, but the IRS.

The IRS is a separate institution. They have complicated ways of counting days present in this year, last year and it's kinda crazy for determining if you are a resident alien or non-resident alien for tax purposes. Remember this is IRS classification, not USCIS status. But the easiest way for you to be a resident alien for tax purposes for all of 2015 is by being married to a USC and electing (IRS wording) to be treated as a resident alien for tax purposes. That way you will file joint taxes with the spouse. There's more to that, but it's a good thing and you do want to do it. So being a resident alien makes you a "US person" in IRS talk.

Meanwhile the poor old banker dude doesn't know what to do with you and he has requirements to get forms filled out. Because you will be a US person for tax filing purposes for all of 2015, then there is no reason for any of your interest or dividends to be held out for taxes. Seems like a W-9 should do for you.

And furthermore, interest earned on an account can only be reported under one SSN. If it is your wife's current account, then that would be her number. Even if you open a new account together, one SSN will be listed first as the primary for reporting. Make it the USC's number.

So.....I don't exactly know the answer you want because you're going to have to go talk to the bank again and explain to them that you are not a foreign resident. You are filing 2015 taxes as a resident alien jointly with your USC spouse which makes you like any regular USC tax filer to the IRS.

Tell him to refer to IRS publication 519 http://www.irs.gov/pub/irs-pdf/p519.pdf

page 9 under the heading Nonresident Spouse Treated as a Resident. Print page 9 and take it.

Then ask him to assist you with whichever form he feel appropriate to address the interest you may earn on that account which will probably amount to pennies at the rates today. I hope this little background explanation gives you some insight when you go have that conversation so you and the bank can get on the same page. They never quite know what to do with K1s prior to having a greencard because right now you are kind of a nothing.

[simonschus 58]

I just wanted to say thanks for this useful post! One of my banks in the US asked for this information from me and so I sent it over I hadn't filled one in earlier because I didn't have a SSN when I opened my account, and this form helped to add my SSN onto the account. This post was a useful one to justify why I should be treated as resident alien for tax purposes.

Simon.

Edited June 13, 2016 by simonschus