FREE guide to the GST/HST: bit.ly/3VbnanX Business Deductions Guide: bit.ly/3rFjLA5 Did you know Personal Tax Advisors files your GST/HST for free? Learn more: bit.ly/3RLrd7i
This has got to be the best explanation out there. After scrolling through unnecessary filler videos this was truly a breath of fresh air💗 the perfect explanation
This video is SO helpful! I've searched for instructions for this form last year and last week...and both times your video was the only one that made sense (I've now saved it to my search bar to make it easier in the future😅). Thank you!
I have a cottage in which I run as an Airbnb. They are asking for the W-8BEN otherwise the IRS may withhold %30 of my income. So glad to watch this and put my mind at ease. Thanks so much!
Thank you for making this video, there is definitely a need out there to help Canadian content creators with the IRS tax requirements, and very few videos that actually help. Just sent my W-8BEN forms into TH-cam. Been trying to sort out the withholding tax for my wife and I for some months now as we formed a partnership.
So glad to found this video. Your explanation is the clearest and shortest among others haha... Immediately I get the big picture. Extremely thankful to you dear
This was what I was looking for. My search had a hard time finding this exact info. Thank you for making this so I could feel more confident that I was submitting the correct form... correctly.
Thank you so much for your video! I had never filled out a form like that before and I was so confused. You saved me an extra hour or two of research, really appreciate it!
Hi Sunny, thank you so much for this video! This form has been stressing me out BIG time. I have a couple questions: - do I need an ITIN? Or just the FTIN? - What’s the difference? I had no idea the FTIN was just my SIN number, so that’s really helpful!
Thank you for explaining so nicely. I am from Pakistan and my client is also asking for this form. But i am confused about what i fill out question 10 because i don't know the tax treaty percentage of the USA with Pakistan
Thank you for clarifying this. I invest in my TFSA and I have American companies that pay out dividends and my bank was asking me to fill this form on their website. Hardest part now will be to find the form in the list! Thank you again! :)
This is immensely helpful, but I have seen another video claiming if that payor is not intending to withhold tax (e.g. non US source income), you can leave Part II blank, as it's not subject to any tax treaty. Can you please help clarify?
This was so helpful! So when I report the income that was not pre-taxed in usa, I simply convert it in CAD and report it? Also I had some US income before that was that was taxed in the US already, so how do I report that ??
Thanks for the video! What do you put for Line 7? I see you have answered twice already, but I still seem confused. "Line 7 is a reference number for your own files, or for the files of the US payer. You can leave it blank." "Yes, usually. But read the instructions that come with the form carefully to make sure it doesn't apply to you.
You can leave it blank. Big organizations may have several of these forms floating around, and need their own internal system for keeping track of them. They might put in some kind of reference number here. It's like if you've ever sent something via courier, and there's a space for a reference number that means something to you, but nothing to the courier. Or like the memo line on a cheque.
Thanks for the concise and helpful video - you earned my subscription. Will the IRS get my info when I fill out this form? Being in Canada, I usually try to avoid government involvement when dealing with US clients.
Normally the payer just keeps this document on file so they can defend the fact that they're not withholding tax for you, if the IRS ever challenges them on it. The IRS doesn't get this document unless they demand to see it from your US payer. If the IRS makes that demand, they're obliged to hand it over. Thanks for subscribing! 😁
Well thanks for the nice video it really does helps me to understand it but i have a question am a south sudanese and i don't have a tax number how can i fill the W8-BEN????
You may have to apply for an Individual Taxpayer Identification Number, or ITIN. The IRS has a form for this, and it essentially collects your identifying information and assigns you a number in the IRS system so they know who you are. Google IRS Form W-7.
I am a Canadian citizen travel nursing in the U.S. The first half of the year I worked in Canada and since May I have been doing travel assignments in New York State. I am also working casual in my Ontario hospital between assignments. To further muddy the waters, I retired in May so I also collect a decent pension. I am not looking forward to tax time. I was told about an IT203 for NY state tax exemption but I really don't know where to start. Do I do my U.S. income tax first with my IT203 then once done submit it all to Canada? Any guidance you can offer would be appreciated.
Tax residency is complicated! We can do a consultation to determine your situation and requirements. Visit our website (in the description) and send your quesiton via the Contact form. Maybe we can help. ❤🌞
Hello Sunny, hope you are having a good time. I want to know in my case how to fill out the W8 BEN taking into account that I have lived in the United States for 3 months, recently married to an American citizen but I still do not have my residence or a work contract in the United States. The bank asks me to fill out this form to open my bank account.
It depends on whether or not you're subject to another country's tax laws or not. Only people who are subject to another treaty country's tax laws fill out the W8Ben. Assuming you're originally from Canada, Canada would most likely NOT tax you in this situation -- so you wouldn't fill out the W8Ben -- given that your spouse and domicile are in the US. But you should probably get a ruling about that from the Canada Revenue Agency (CRA). Look up the Canadian forms NR73 or NR74 (I forget which one is for entering and which is for leaving Canada). You can fill one out and send it to CRA to get a ruling one way or the other. Hope that helps! ❤🌞
How come we skip Question 10? As a songwriter, singer, rapper, and engineer who is trying to collect royalties for songwriting, would I need to fill this in or no?
Do you have a video that talks about the W-8BEN-E? I am specifically interested to know more about Part III Claim of Tax Treaty Benefits for a Canadian corporation
Not yet! the W8BEN-E is for corporations and other non-human entities, and it has a lot more options. But subscribe, and if I ever do put out a video about that, you'll know. -- 💗🌞
Glad to have come across your video, but wondering if it applies to me, Im starting an affiliate marketing business in which the affiliates I'm promoting are in the US. I'm referring to BlueHost in particular. future possible purchasers could/would be from all over the globe. I'm not set up as a business yet (not sure which way and how I should do this) so the 2nd part of my question is . . . or do I need to do the W8 Bene (BTW, I'm in Ontario), TY in advance!
Hi! I have a question :) What happen if I’m residing in Canada (I just move) but I’m a citizen from Colombia… do I need to use the SIN or my passport? As foreign identification
Hi Sunny. Thanks for the video. I currently have a work permit and SIN number in Canada, but I have citizenship from Iran, not Canada. Could you please help me which country I should mention in line 2? Is it ok to mention Canada as my country of citizenship because there is no choice for Iran on TH-cam?
Hi Sunny I am from the netherlands, finally a video that shows something easily. I am a Udemy Instructor and Udemy sells my courses. I saw you didn't fill out question 10 special rates and conditions. Does this hold true for all foreign nationals ? In other words, simply stating I am from the Netherlands is enough or is this oversimplifying it
As we all know, TH-cam isn't the place for specific tax advice. That said: yes, probably. 😁 If the Netherlands considers you to be a tax resident, and if the Udemy course revenue is fully taxable in the Netherlands, typically you would be able to just enter 'Netherlands' in Q9 and skip Q10. If Udemy is offering you the form, it's probably a typical situation for teachers on the platform. Good luck with your courses! ❤🌞
If you have another recognized country's tax identification number, just fill in the international one and leave the US one blank. If you don't have another country's identification number, apply for an Individual Tax Identification Number (ITIN) by completing IRS form W-7 and they will assign one to you.
Hello.. I need help please .. I’m am a Barbadian who lives in Barbados but my mom was a resident in the US and sadly she’s has recently passed away. She had an annuity which my siblings and I are the beneficiaries. After submitting the forms for the claim they were denied because we don’t have SSNs and were told we have to complete a W-8BEN form. But I don’t know how to complete correctly. Please help me 🙏🏾
Only if someone is withholding tax on the income you're earning there, tax that would not be withheld if you were a foreign entity. Either way, you almost certainly are legally liable for tax on any profit you earn on the property, because it's an asset located in the US. I'm not a US accountant, but I can say that in Canada, your 'I am a foreign tax resident' declaration would actually *trigger* a tax withholding that is specifically for foreigners earning profit from an asset held within the country.
Thank you so much! It feels easier now. I am from Mongolia and I am getting a new job as contractor from US. And my country and US doesn't have tax treaty benefits do I still fill the form just like the way you explained here? Does it mean they will withhold 30% of my payment? Do I still fill question 9? I am not US citizen or I have never been to US.
Filling out the form as shown in the video is essentially making a declaration that you're not a US person (citizen or resident) and therefore aren't subject to US tax. So long as you're outside the US, I don't think there's going to be a conflict even if Mongolia doesn't have a treaty with the US. Anyway it can't hurt to try. Not sure how much they'll withhold without it -- I'm Canadian, not American! :)
Only if some other country, one of the ones that the US has a tax treaty with (which is most of them), considers her subject to their taxes on her earnings. Immigration status (e.g., citizenship, visas) don't typically have an impact on tax residency/laws.
Glad it helped! Don't forget to click the link in the description and sign up for my free tax tips - I have a lot of great stuff coming up, particularly for self-employed Canadians. - Sunny☀️
The country you enter where I said 'Canada' would be 'India'. The tax identification number where a Canadian would enter their SIN, would be whatever numbering system the Indian tax system uses to identify you. - Sunny☀️
Thank you for the video, very helpful! I have another question. My friend is from Mexico and was employed by an us company. So she stayed in the US last year, but she was laid off later and wanted to withdraw the 401k. Is the 401k distribution subject to the 30% tax or just fill out the W-8BEN? Thank you so much!
I'm a Canadian tax expert, not a US one. But I can say that the Canadian equivalent (a withdrawal from an RRSP) would indeed be subject to a flat-rate withholding if you're a foreign tax resident when you do this. In the case of Canadian RRSPs, it's because the person gets a tax deferral when they put the funds in; once they take the funds out, the deferral ends and the tax that *would* have been paid in the year of contribution, has to be paid retroactively. The Canadian system estimates it using a flat rate. The 401k may be similar. But please talk to a US tax expert or the IRS to be sure. ❤🌞
The form asks for the Canadian's U.S. tax identification number on line 4, but the video doesn't address this issue at all. I am the treasurer for a small U.S.-based association of language professors, and we just had a Canadian resident give the keynote speech at a recent conference. Does the Canadian professor really need a SSN or TIN to complete the W-8BEN? She has no fixed base in the U.S.
Hi dear thanks 🙏 iam a singer songwriter from France my digital royalties collector as me to file this form I put France 🇫🇷 and on 10 I just put to claim a 0 % rate withholding
Great video! One question though. Since this isn't submitted directly to the IRS but a US client. Isn't there a BIG identity theft risk by providing the Canadian SIN Number? If the client isn't handling the document properly, all information is exposed.
Anytime you work for an employer (which is a similar situation, though I admit not exactly the same) you need to hand over a tax identification number, i.e., your SIN. You're trusting them not to abuse it, of course. This document should stay in the confidential files of the US entity that's paying you. If you don't trust them to keep your information secure and private, maybe you shouldn't be working for them.
Hello there, I'm a music composer that works with royalties does number 10 in part 2 apply to me or do I just complete this form in the same way as this Canadian person? Also from what I read here I got confused - do tax treaty benefits reduce the withholding percentage, exempt me totally or can do either? Because I saw a percentage reduction for most countries so how does it work exactly?
I'm also curious about Line 10. I'm an Australian author earning royalties in the US. Is it sufficient to complete Line 9, or do I need to specify Articles in the treaty on Line 10?
@@fearlessproseHey there, I've filled the form. You have to check the treaty benefit between Australia and the US on their website. You'll find the withholding percentage on this website. You'll then specify the article and paragraph, for example Article 12 Paragraph 4. Then write the withholding percentage, then the type of income is Royalties. The last space in line 10, you'll write this sentence "Beneficial owner is established in Australia and all the work is done in Australia". If you need any help, let me know. Good luck!
Hi Sunny! Thank you so much for this video - a real time saver! I just wanted to make sure I understand correctly - if I am a French resident and got a one time earning coming from the US, I have to pay taxes in France and not in the US? Thank you in advance!
That is correct. For every country except the US (who have different rules), you pay income tax on world income based on whatever jurisdiction you make your home in.
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Learn more: bit.ly/3RLrd7i
Do you have an email to contact you ?
This has got to be the best explanation out there. After scrolling through unnecessary filler videos this was truly a breath of fresh air💗 the perfect explanation
Thanks. I was overwhelmed reading the instructions
thank you sooo much, this was beyond helpful! I was so overwhelmed by the form until I found this video!
Awesome video! Its amazing how you put it. Made it so simple for all of us who were stuck.
The best explanation I was searching for in 2024 😀 Thanks Sunny
Wow! This was so helpful. I'll admit, I was overwhelmed when the 'IRS' name gets thrown around, but this immediately brought some peace.
That reaction is EXACTLY why I do these things. I'm so glad I brought your blood pressure down a few points! . -- 💗🌞
This video is SO helpful! I've searched for instructions for this form last year and last week...and both times your video was the only one that made sense (I've now saved it to my search bar to make it easier in the future😅). Thank you!
I have a cottage in which I run as an Airbnb. They are asking for the W-8BEN otherwise the IRS may withhold %30 of my income. So glad to watch this and put my mind at ease. Thanks so much!
You're very welcome!
Amazing video. So quick and specific, you really saved me a lot of time here!
Thank you for making this video, there is definitely a need out there to help Canadian content creators with the IRS tax requirements, and very few videos that actually help. Just sent my W-8BEN forms into TH-cam. Been trying to sort out the withholding tax for my wife and I for some months now as we formed a partnership.
Thank you so much for this video. I saw those treaty documents and was lost immediately. Thanks for being concise and informative🙏🏾
So glad to found this video. Your explanation is the clearest and shortest among others haha... Immediately I get the big picture. Extremely thankful to you dear
This was what I was looking for. My search had a hard time finding this exact info. Thank you for making this so I could feel more confident that I was submitting the correct form... correctly.
Thank you so much! But what do we put as reference numbers?
It helped me! As a freelancer, a client to pay me asked me to fill it.
Thankyou for this video, i had my first US client and was so nervous but this walked me through what i had to do easy. Thankyou.
Great thumbnail -- it was reassuring right off the bat! Great video. Thank you
Thank you so much for your video! I had never filled out a form like that before and I was so confused. You saved me an extra hour or two of research, really appreciate it!
you’re a life saver, thank you so much
Short, Comprehensive, and straight to point!
Hi Sunny, thank you so much for this video! This form has been stressing me out BIG time.
I have a couple questions:
- do I need an ITIN? Or just the FTIN? - What’s the difference?
I had no idea the FTIN was just my SIN number, so that’s really helpful!
Thanks for the concise and clear explanation! Helped me fill out my W-8BEN form.
Thank you! That is exactly what I needed, and you simplified it!
Best video on this subject I found exactly what I was trying to figure out
holy moly this was incredibly simplified and helpful, thank you very much
thanks for breaking it down and explaining this :)
Thank you so much for explaining, the IRS website just confused me when I tried to get info
The IRS can do that. They don't mean to, it just...happens 😁
Thank you, that was just the information that I needed!
thank you so much for explaining! I was terrified about filling out this form wrong, but that was really helpful!
Glad I could help 😀
People living in Canada, who develop applications for iphone DO need to fill out this form. thanks for the info
Thanks Sunny!
this really helped me understanding the form as UAE resident
This was 100% what I needed.. life saver thank you
Thank you for explaining so nicely. I am from Pakistan and my client is also asking for this form. But i am confused about what i fill out question 10 because i don't know the tax treaty percentage of the USA with Pakistan
Thanks for your information, it was really helpful completing my W-8BEN. I really appreciate your help.
Thank you for clarifying this. I invest in my TFSA and I have American companies that pay out dividends and my bank was asking me to fill this form on their website. Hardest part now will be to find the form in the list! Thank you again! :)
Glad it was helpful!
I thought with tfsa the withholding tax cannot be waived, only in RRSP.
This is immensely helpful, but I have seen another video claiming if that payor is not intending to withhold tax (e.g. non US source income), you can leave Part II blank, as it's not subject to any tax treaty. Can you please help clarify?
This was so helpful!
So when I report the income that was not pre-taxed in usa, I simply convert it in CAD and report it?
Also I had some US income before that was that was taxed in the US already, so how do I report that ??
This was incredibly helpful!!! Thank you so much!!!
You're welcome!
EXACTLY what I needed - thank you.
Hi Can you please share other forms that the US company need to file in hiring an independent contractor from Canada
Thanks for the video! What do you put for Line 7?
I see you have answered twice already, but I still seem confused.
"Line 7 is a reference number for your own files, or for the files of the US payer. You can leave it blank."
"Yes, usually. But read the instructions that come with the form carefully to make sure it doesn't apply to you.
You can leave it blank. Big organizations may have several of these forms floating around, and need their own internal system for keeping track of them. They might put in some kind of reference number here. It's like if you've ever sent something via courier, and there's a space for a reference number that means something to you, but nothing to the courier. Or like the memo line on a cheque.
The perfect explanation.🎉
Thanks alot, I was losing my mind, I didn't know how to sign it
Yep this was perfect and to the point- thanks.
Thanks you are every helpful on this issue
Glad to help :)
Thanks for the concise and helpful video - you earned my subscription. Will the IRS get my info when I fill out this form? Being in Canada, I usually try to avoid government involvement when dealing with US clients.
Normally the payer just keeps this document on file so they can defend the fact that they're not withholding tax for you, if the IRS ever challenges them on it. The IRS doesn't get this document unless they demand to see it from your US payer. If the IRS makes that demand, they're obliged to hand it over. Thanks for subscribing! 😁
@@personaltaxadvisors excellent explanation, I've just subscribed as well!
Well thanks for the nice video it really does helps me to understand it but i have a question am a south sudanese and i don't have a tax number how can i fill the W8-BEN????
You may have to apply for an Individual Taxpayer Identification Number, or ITIN. The IRS has a form for this, and it essentially collects your identifying information and assigns you a number in the IRS system so they know who you are. Google IRS Form W-7.
LOVE this. This form was stressing me out!
My pleasure! Be sure to check out the description and sign up for my tax tips. Lots of great stuff coming up for self-employed Canadians! - Sunny☀️
Please where are you sending the form to after filling
Pls if u get an answer let me know too🙏I don't know how to submit it
I am a Canadian citizen travel nursing in the U.S. The first half of the year I worked in Canada and since May I have been doing travel assignments in New York State. I am also working casual in my Ontario hospital between assignments. To further muddy the waters, I retired in May so I also collect a decent pension. I am not looking forward to tax time. I was told about an IT203 for NY state tax exemption but I really don't know where to start. Do I do my U.S. income tax first with my IT203 then once done submit it all to Canada? Any guidance you can offer would be appreciated.
Tax residency is complicated! We can do a consultation to determine your situation and requirements. Visit our website (in the description) and send your quesiton via the Contact form. Maybe we can help. ❤🌞
Hello Sunny, hope you are having a good time. I want to know in my case how to fill out the W8 BEN taking into account that I have lived in the United States for 3 months, recently married to an American citizen but I still do not have my residence or a work contract in the United States. The bank asks me to fill out this form to open my bank account.
It depends on whether or not you're subject to another country's tax laws or not. Only people who are subject to another treaty country's tax laws fill out the W8Ben. Assuming you're originally from Canada, Canada would most likely NOT tax you in this situation -- so you wouldn't fill out the W8Ben -- given that your spouse and domicile are in the US. But you should probably get a ruling about that from the Canada Revenue Agency (CRA).
Look up the Canadian forms NR73 or NR74 (I forget which one is for entering and which is for leaving Canada). You can fill one out and send it to CRA to get a ruling one way or the other.
Hope that helps! ❤🌞
How come we skip Question 10? As a songwriter, singer, rapper, and engineer who is trying to collect royalties for songwriting, would I need to fill this in or no?
Do you have a video that talks about the W-8BEN-E? I am specifically interested to know more about Part III Claim of Tax Treaty Benefits for a Canadian corporation
Not yet! the W8BEN-E is for corporations and other non-human entities, and it has a lot more options. But subscribe, and if I ever do put out a video about that, you'll know. -- 💗🌞
SIMPLE DIRECT ... LOVE IT! THANKS !!
for line 6a can we use an ID number from the country example Colombia ?
Glad to have come across your video, but wondering if it applies to me, Im starting an affiliate marketing business in which the affiliates I'm promoting are in the US. I'm referring to BlueHost in particular. future possible purchasers could/would be from all over the globe. I'm not set up as a business yet (not sure which way and how I should do this) so the 2nd part of my question is . . . or do I need to do the W8 Bene (BTW, I'm in Ontario), TY in advance!
Super helpful and very straightforward. Thank you so much Sunny!
Any time! ❤🌞
Do you still put your personal SIN number even if all the purchases will be made through a corporation?
This was a major help to me! i was so confused by question 10 haha.
Happy to help. - Sunny☀️
Hi! I have a question :) What happen if I’m residing in Canada (I just move) but I’m a citizen from Colombia… do I need to use the SIN or my passport? As foreign identification
If I am 1099 and the company does not withhold any taxes do I need to send them a w8ben ?
straight to the point. thank you
Hi Sunny. Thanks for the video. I currently have a work permit and SIN number in Canada, but I have citizenship from Iran, not Canada. Could you please help me which country I should mention in line 2? Is it ok to mention Canada as my country of citizenship because there is no choice for Iran on TH-cam?
Thank you so much for this video. It helps me a lot!
SUPER HELPFUL! Thank you
I filled out the form as you said but TH-cam still won't give me the tax break at 0% for a Canadian
I am a resident from UK, how do I fill in part II ???
Hi Sunny I am from the netherlands, finally a video that shows something easily. I am a Udemy Instructor and Udemy sells my courses. I saw you didn't fill out question 10 special rates and conditions. Does this hold true for all foreign nationals ? In other words, simply stating I am from the Netherlands is enough or is this oversimplifying it
As we all know, TH-cam isn't the place for specific tax advice. That said: yes, probably. 😁
If the Netherlands considers you to be a tax resident, and if the Udemy course revenue is fully taxable in the Netherlands, typically you would be able to just enter 'Netherlands' in Q9 and skip Q10. If Udemy is offering you the form, it's probably a typical situation for teachers on the platform. Good luck with your courses! ❤🌞
Hi, My only question is how can I sign the W-8Ben? It is requesting me a digital id
Thank you maam for THIS video. although i have a question, what about a tax payer US payer Identification number? Do you leave it blank
If you have another recognized country's tax identification number, just fill in the international one and leave the US one blank. If you don't have another country's identification number, apply for an Individual Tax Identification Number (ITIN) by completing IRS form W-7 and they will assign one to you.
Hello.. I need help please .. I’m am a Barbadian who lives in Barbados but my mom was a resident in the US and sadly she’s has recently passed away. She had an annuity which my siblings and I are the beneficiaries. After submitting the forms for the claim they were denied because we don’t have SSNs and were told we have to complete a W-8BEN form. But I don’t know how to complete correctly. Please help me 🙏🏾
That was helpful, thanks! Does the same steps apply if you own an investment property in the US?
Only if someone is withholding tax on the income you're earning there, tax that would not be withheld if you were a foreign entity.
Either way, you almost certainly are legally liable for tax on any profit you earn on the property, because it's an asset located in the US. I'm not a US accountant, but I can say that in Canada, your 'I am a foreign tax resident' declaration would actually *trigger* a tax withholding that is specifically for foreigners earning profit from an asset held within the country.
Olá moça boa tarde. No meu caso eu sou brasileiro, posso usar esse formulário???
I don't know how to submit d form after filling,,,how do I submit pls I need urgent help on dis,, thanks
Hi I'm in the Caribbean and I have stocks in the US and they told me to fill out a 1042s and 8-ben
Many thanks, Sunny! It really helped.
What an excellent video! So much value!
Thank you so much! It feels easier now.
I am from Mongolia and I am getting a new job as contractor from US.
And my country and US doesn't have tax treaty benefits do I still fill the form just like the way you explained here?
Does it mean they will withhold 30% of my payment? Do I still fill question 9?
I am not US citizen or I have never been to US.
Filling out the form as shown in the video is essentially making a declaration that you're not a US person (citizen or resident) and therefore aren't subject to US tax. So long as you're outside the US, I don't think there's going to be a conflict even if Mongolia doesn't have a treaty with the US. Anyway it can't hurt to try. Not sure how much they'll withhold without it -- I'm Canadian, not American! :)
Many thanks. You are amazing.
Thank you, that is very helpful.
So helpful! Is this true if you have a registered corporation? Or only a sole proprietorship?
There's a similar but different (and more complicated) form for corporations called the W8Ben-E. Look that one up.
My friend overstayed her visa but she received a W-8 Ben form from the Bank, would she be qualified for this beneficial ?
Only if some other country, one of the ones that the US has a tax treaty with (which is most of them), considers her subject to their taxes on her earnings. Immigration status (e.g., citizenship, visas) don't typically have an impact on tax residency/laws.
You are amazing! Thank you! This was so quick and easy.
Glad it helped! Don't forget to click the link in the description and sign up for my free tax tips - I have a lot of great stuff coming up, particularly for self-employed Canadians. - Sunny☀️
What should I do if HR doesn't accept or file this ?
Thanks for sharing. It really helps me out. I have the same question that you talked about at the beginning. The only diff is, that I am from India.
The country you enter where I said 'Canada' would be 'India'. The tax identification number where a Canadian would enter their SIN, would be whatever numbering system the Indian tax system uses to identify you. - Sunny☀️
@@personaltaxadvisors It will be the PAN number.
I live in Canada and pay taxes in Canada, but I also have an SSN. Do I use my SIN or SSN?
If you have a SSN, use that. -- 💗🌞
Great, thanks Sunny!
Thank you for the video, very helpful! I have another question. My friend is from Mexico and was employed by an us company. So she stayed in the US last year, but she was laid off later and wanted to withdraw the 401k. Is the 401k distribution subject to the 30% tax or just fill out the W-8BEN? Thank you so much!
I'm a Canadian tax expert, not a US one. But I can say that the Canadian equivalent (a withdrawal from an RRSP) would indeed be subject to a flat-rate withholding if you're a foreign tax resident when you do this.
In the case of Canadian RRSPs, it's because the person gets a tax deferral when they put the funds in; once they take the funds out, the deferral ends and the tax that *would* have been paid in the year of contribution, has to be paid retroactively. The Canadian system estimates it using a flat rate. The 401k may be similar.
But please talk to a US tax expert or the IRS to be sure. ❤🌞
Thank you so much. This is very helpful
YOURE THE BEST!!
Thanks
The form asks for the Canadian's U.S. tax identification number on line 4, but the video doesn't address this issue at all. I am the treasurer for a small U.S.-based association of language professors, and we just had a Canadian resident give the keynote speech at a recent conference. Does the Canadian professor really need a SSN or TIN to complete the W-8BEN? She has no fixed base in the U.S.
Hi dear thanks 🙏 iam a singer songwriter from France my digital royalties collector as me to file this form I put France 🇫🇷 and on 10 I just put to claim a 0 % rate withholding
Great video! One question though. Since this isn't submitted directly to the IRS but a US client. Isn't there a BIG identity theft risk by providing the Canadian SIN Number? If the client isn't handling the document properly, all information is exposed.
Anytime you work for an employer (which is a similar situation, though I admit not exactly the same) you need to hand over a tax identification number, i.e., your SIN. You're trusting them not to abuse it, of course. This document should stay in the confidential files of the US entity that's paying you. If you don't trust them to keep your information secure and private, maybe you shouldn't be working for them.
Hello there, I'm a music composer that works with royalties does number 10 in part 2 apply to me or do I just complete this form in the same way as this Canadian person? Also from what I read here I got confused - do tax treaty benefits reduce the withholding percentage, exempt me totally or can do either? Because I saw a percentage reduction for most countries so how does it work exactly?
I'm also curious about Line 10. I'm an Australian author earning royalties in the US. Is it sufficient to complete Line 9, or do I need to specify Articles in the treaty on Line 10?
@@fearlessproseHey there, I've filled the form. You have to check the treaty benefit between Australia and the US on their website.
You'll find the withholding percentage on this website. You'll then specify the article and paragraph, for example Article 12 Paragraph 4. Then write the withholding percentage, then the type of income is Royalties. The last space in line 10, you'll write this sentence "Beneficial owner is established in Australia and all the work is done in Australia".
If you need any help, let me know. Good luck!
You are a legend! Thank you so much for clarifying this.
@@fearlessprose It was a nightmare filling this form so I'm happy I could help!
Hi Sunny! Thank you so much for this video - a real time saver! I just wanted to make sure I understand correctly - if I am a French resident and got a one time earning coming from the US, I have to pay taxes in France and not in the US? Thank you in advance!
That is correct. For every country except the US (who have different rules), you pay income tax on world income based on whatever jurisdiction you make your home in.
@@personaltaxadvisors This is very helpful - thank you Sunny!
Thank you so much! So helpful.
Amazing video!! Super helpful!
Thanks! That was very helpful! :)