Tax Withholding (W8BEN from BofA)

[Jake77 17]

Context:

- GC Holder.

 

- Has never worked in the U.S. since I arrived.

 

- No experience with taxes (never had to do them in my home country because I didn't work after high school / only waited for my visa.)

 

 

 

Questions:

 

1. Do I REALLY have to fill this out?

 

- I don't have a lot of money in my bank: It won't matter to me even if incomes paid to my account are withheld.

 

(W8BEN says the bank can withhold 24% of income if I don't send my W8.)

 

(I don't work yet. There is nothing to withhold.)

 

(I will be switching banks when I start working. Does this W8 from BofA even matter?)

 

- I will be switching to another bank when I enter Boot Camp. (As of now I'm using Bank of America. The Marines offer people in Boot Camp a chance to open an account with 2 other banks.)

 

If my new bank in Training makes me fill out another W-8 that's fine . . . but do I have to send one to Bank of America RIGHT NOW when I'm about to switch banks anyway?

 

 

 

2. Will I get a negative record on the IRS system or whatever if I don't send this to Bank of America?

 

 

Edited October 13 by Jake77

[EatBulaga 317]

7 hours ago, Jake77 said:

Context:

- GC Holder.

 

- Has never worked in the U.S. since I arrived.

 

- No experience with taxes (never had to do them in my home country because I didn't work after high school / only waited for my visa.)

 

Questions:

 

1. Do I REALLY have to fill this out?

 

- I don't have a lot of money in my bank: It won't matter to me even if incomes paid to my account are withheld.

 

(W8BEN says the bank can withhold 24% of income if I don't send my W8.)

 

(I don't work yet. There is nothing to withhold.)

 

(I will be switching banks when I start working. Does this W8 from BofA even matter?)

 

- I will be switching to another bank when I enter Boot Camp. (As of now I'm using Bank of America. The Marines offer people in Boot Camp a chance to open an account with 2 other banks.)

 

If my new bank in Training makes me fill out another W-8 that's fine . . . but do I have to send one to Bank of America RIGHT NOW when I'm about to switch banks anyway?

 

2. Will I get a negative record on the IRS system or whatever if I don't send this to Bank of America?

 

 

1. You received the W8BEN because your bank has a record of you being a foreigner from your green card or foreign passport. W-8BEN is for claiming exemption from interest payment withholding similar to the W-8 for US citizens. By NOT filling out and proving foreign exemption, the bank withholds and report a percentage (in your case, 24%) to the IRS and sends you the 1099-INT around January-February for you to include as part of your tax return filing by April 15. For all practical purposes, if you don't expect a lot of interest payment from the bank, you can ignore the W-8BEN. The bank interest payment is part of your of earnings which you include in your tax return filing every year.

 

I posted our experience with the W-8BEN at

https://www.visajourney.com/forums/topic/790033-w-8ben-for-k1-to-aos-filer/

 

2. You only get a negative record with the IRS if you don't file your tax return every year as a green card holder or US citizen. Others have posted USCIS and IRS rarely communicate. But for naturalization purposes, best to have a consistent record of IRS tax filing every year. 

Edited October 14 by EatBulaga

[Jake77 17]

On 10/13/2024 at 11:46 PM, EatBulaga said:

 

1. You received the W8BEN because your bank has a record of you being a foreigner from your green card or foreign passport. W-8BEN is for claiming exemption from interest payment withholding similar to the W-8 for US citizens. By NOT filling out and proving foreign exemption, the bank withholds and report a percentage (in your case, 24%) to the IRS and sends you the 1099-INT around January-February for you to include as part of your tax return filing by April 15. For all practical purposes, if you don't expect a lot of interest payment from the bank, you can ignore the W-8BEN. The bank interest payment is part of your of earnings which you include in your tax return filing every year.

 

I posted our experience with the W-8BEN at

https://www.visajourney.com/forums/topic/790033-w-8ben-for-k1-to-aos-filer/

 

2. You only get a negative record with the IRS if you don't file your tax return every year as a green card holder or US citizen. Others have posted USCIS and IRS rarely communicate. But for naturalization purposes, best to have a consistent record of IRS tax filing every year. 

When I open a new account with another bank, willnthe new bank send me another W8?

[top_secret 2,458]

On 10/18/2024 at 10:39 AM, Jake77 said:

When I open a new account with another bank, willnthe new bank send me another W8?

 

The bank is mistaking you as a visitor rather than a Permanent Resident.  It is an error the bank needs to correct rather than filling a W8-BEN.  By signing a W8-BEN you would certifying under penalties of perjury that you ARE NOT a US Person.  As a US Permanent Resident you ARE a US Person so certifying that you are not is illegal.

 

 

 

Your situation differs from EatBaluga's spouse because they were still in the process of adjusting status and therefore NOT a US Permanent Resident yet.  But you ARE.