W-9 vs W-8BEN
One question decides which form you complete: are you a U.S. person for tax purposes? Get it wrong in one direction and you make a false certification; get it wrong in the other and you may pay 30% withholding you did not owe.
Which form your status calls for
- U.S. citizen
- Form W-9, including citizens living abroad
- Resident alien for tax purposes
- Form W-9
- Foreign individual
- Form W-8BEN
- Foreign entity
- Form W-8BEN-E
- U.S. entity
- Form W-9
- Not sure
- Get advice before signing. Part II is a perjury certification
Who is a U.S. person
The term does a great deal of work on this form, and it reaches wider than most people expect. For these purposes a U.S. person means:
- a U.S. citizen, wherever resident;
- a resident alien, meaning someone who holds a green card or who meets the substantial presence test;
- a partnership, corporation, company or association created or organized in the United States or under U.S. law;
- a domestic estate;
- a domestic trust.
Broadly, you meet it if you were present in the United States for at least 31 days in the current year and 183 days across a three-year weighted period: all the days this year, one third of last year’s, and one sixth of the year before. Certain visa categories are excluded from counting days, among them some students, teachers and trainees, and some government-related individuals. Because the exceptions matter and the arithmetic is easy to get wrong, this is a question for a tax professional rather than a form.
People on temporary visas are often surprised to find they are resident aliens for tax purposes and should complete a W-9, and others assume a visa makes them foreign for tax when it does no such thing. The two systems answer different questions with similar vocabulary.
The two forms compared
| Form W-9 | Form W-8BEN | |
|---|---|---|
| Who completes it | A U.S. person | A foreign individual |
| Certifies | That you are a U.S. person | That you are not a U.S. person |
| Number required | SSN or EIN | A foreign TIN, or a U.S. ITIN where required |
| Default withholding | None, when correctly completed | 30% on many U.S.-source payments, unless reduced |
| Treaty benefits | Not applicable | Part II claims a reduced treaty rate |
| Expiration | None | Generally the end of the third calendar year after signing |
| Year-end form | Form 1099 | Form 1042-S |
| Backup withholding | 24% if no valid form | Chapter 3 withholding applies instead |
The W-8 family
| Form | Who uses it |
|---|---|
| W-8BEN | A foreign individual receiving U.S.-source income, claiming foreign status and any treaty benefit |
| W-8BEN-E | A foreign entity, with a substantially longer form covering FATCA classification |
| W-8ECI | A foreign person whose income is effectively connected with a U.S. trade or business |
| W-8EXP | A foreign government, international organization, foreign central bank or foreign tax-exempt organization |
| W-8IMY | A foreign intermediary, flow-through entity or certain U.S. branches |
Why the wrong form costs money
| Error | Consequence |
|---|---|
| A foreign person signs a W-9 | A false certification. $500 civil penalty under IRC 6682, potential criminal exposure for willful falsification, and the loss of any treaty rate you were entitled to. Detail |
| A U.S. person signs a W-8BEN | The payer may withhold 30% on payments that needed no withholding at all. Recovering it means filing a U.S. return and claiming a refund |
| A foreign person provides nothing | 30% withholding on U.S.-source income, with no treaty reduction. Non-U.S. creators meet this on ad revenue. Detail |
| A resident alien signs a W-8 believing a visa makes them foreign | Incorrect withholding, and a return that does not reconcile with what was reported |
You cannot rely on a W-9 you have reason to know is wrong. If a vendor’s address is overseas, their banking is foreign, and their correspondence suggests they are not a U.S. person, a signed W-9 does not discharge your obligation. Ask. Chapter 3 and chapter 4 withholding liabilities sit with the withholding agent, so the cost of getting this wrong lands on you rather than on the vendor who signed the form.
Special cases worth flagging
- A U.S. citizen living abroad files a W-9. Citizenship settles it, wherever you happen to live.
- A dual citizen who holds U.S. citizenship files a W-9.
- A green card holder is a resident alien and files a W-9.
- A U.S. LLC owned by a foreign person is a domestic entity, but if it is a disregarded entity the analysis follows the foreign owner. This one is genuinely complicated; get advice.
- A former citizen or long-term resident who expatriated should not be signing a W-9.
- If your status changed mid-year you may need to provide a new form from the date of the change.
Frequently asked questions
Should I file a W-9 or a W-8BEN?
A W-9 if you are a U.S. person: a citizen, a resident alien, or a U.S.-organized entity. A W-8BEN if you are a foreign individual. Foreign entities use W-8BEN-E.
What happens if I sign the wrong one?
Signing a W-9 when you are not a U.S. person is a false certification with a $500 civil penalty under IRC 6682, and it can cost you a reduced treaty withholding rate you were entitled to.
I am on a visa. Which form?
It depends on tax residency, not immigration status. Meeting the substantial presence test generally makes you a resident alien for tax purposes, and resident aliens complete a W-9. Certain visa categories are excluded from the test. Get advice if you are unsure.
Does a W-8BEN expire?
Yes. It generally remains valid until the end of the third calendar year after signing, then needs renewal. Form W-9 has no expiration. Detail
Can a U.S. company make me sign a W-9 if I live abroad?
If you are a U.S. citizen living abroad, yes. Citizenship makes you a U.S. person regardless of residence. If you are not a U.S. person, the correct form is a W-8.
General information, not tax advice. This page explains a federal tax form in plain English. It is not legal, tax, or accounting advice, and W9Form.org is not affiliated with the IRS. Verify everything against the official Form W-9 page on IRS.gov and speak to a licensed professional about your own situation. How we source and review these pages.