Originally Posted by rnilesh99
#1I need help in filling up form W8-BEN to declare foreign status. My only financial transactions in the USA now are my IRA accounts related. So far I have only taken distribution of $500 from my ROTH IRA account which is less than contributions to the ROTH IRA account. But still this distribution was charged a tax withholding of 30%.
#2;Is there a a way to claim 0% tax withholding on my IRAs. I do not plan to take distributions immediately. But would like to know best way to reduce these taxes. Need help in this regards. Please advise.
#1;UNLESS you file and submit W8BEN, are subject to US. tax at a flat 30% rateSometimes an Income Tax Treaty negotiated with the US and another country can be used to reduce this tax rate.in genral, the withholding agent in US witholds the required tax; your distribution is charged a tax withholding of 30%.
#2;as said you only neeed to file and submit W8BEN. The 30% (or lower Treaty rate) withholding tax is required only for payments made to foreign payees.you must provide the Form W-8BEN directly to the payor of the income (do not submit the Form to the IRS) to establish that you are not a US person and to claim that you are the beneficial owner of the income. Form W-8BEN must be signed and dated by the beneficial owner of the income, or, by an authorized representative as evidenced by a duly completed Power of Attorney . If not you must fiel 1040NR for refund