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Old 04-28-2016, 11:05 AM
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W8BEN form filling help

I 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%. 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.



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Old 04-29-2016, 12:58 AM
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Originally Posted by rnilesh99 View Post
#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


Last edited by Wnhough : 04-29-2016 at 01:47 AM. Reason: correction


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Old 04-29-2016, 05:58 AM
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W8ben

Thank you for your reply. I still have questions to clarify. To give you my status. I am residing in India now, and do not have any US income for the last more than 5 years or so and there is no contribution during that period, only one withdrawal from a Roth IRA account. This withdrawal amount is less than the amount contributed to the Roth IRA account and was contributed more than 5 years before withdrawing. So its a penalty and tax free withdrawal. My only financial assets are my retirement accounts. I filled up W8-BEN form and have submitted to TD Ameritrade where I hold my Roth and Traditional IRA accounts. I have not mentioned India treaty article number as I could not find that information. I know there is a USA-India tax treaty but don't know the article that needs to be mentioned on W8-BEN form. So now my question is what I should be filling in W8Ben form. I have filled in my name, India address and India PAN (SS/TIN equivalent), DOB, and account num. Should I fill in anything in Part II section CLAIM of TAX TREATY BENEFITS. If yes then what treaty and article number do I need to mention.
If I do not fill in this details, I simply file 1040NR to claim tax refund? Is there a way to reduce the withholding to 0% and so then I don't need to file 1040NR to claim refund of amount withheld? Please advise on W8BEN form keeping in mind my status and background details provided.



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