W-8 vs W-9

W‑8 vs W‑9 Forms: Frequently Asked Questions for Expats

If you are an American living abroad or a foreign person receiving U.S. income, you may be asked to complete IRS Form W‑8 or W‑9.

These forms determine:

• How your income is reported to the IRS

• Whether U.S. tax should be withheld

Many banks, online platforms, and financial institutions require one of these forms before releasing payments. Submitting the correct form helps you avoid unnecessary withholding or delays.

What is Form W‑9?

Form W‑9 is for U.S. persons, including:

• U.S. citizens (even if you live abroad)

• U.S. resident aliens (Green Card holders or substantial presence)

• U.S.-registered businesses and LLCs

You use Form W‑9 to give your Taxpayer Identification Number (TIN)—your SSN or EIN—to a person or business that needs to report payments to the IRS.

Who should submit Form W‑9?

You should complete a W‑9 if:

• You are a U.S. citizen or Green Card holder

• You earn income from U.S. sources (freelance, contract work, investments)

• A bank, online marketplace, or client asks for it to report payments

What is Form W‑8?

Form W‑8 is for non‑U.S. persons (foreign individuals or entities) who receive income from U.S. sources, such as:

• Dividends from U.S. stocks

• Royalties from intellectual property

• Payments for services to U.S. clients

The W‑8 certifies that you are a foreign taxpayer and, if applicable, allows you to claim tax treaty benefits to reduce or avoid the 30% withholding tax.

Which W‑8 form should I use?

There are five W‑8 forms, but the most common are:

• W‑8BEN – for individuals

• W‑8BEN‑E – for entities or organizations

Use W‑8BEN if you are a foreign individual, and W‑8BEN‑E if you are a foreign business or organization receiving U.S. income.

What is the difference between W‑8 and W‑9?

How do I know which form to use?

• If you are a U.S. citizen or Green Card holder → Use Form W‑9

• If you are a non‑U.S. person with U.S. income → Use Form W‑8 (W‑8BEN or W‑8BEN‑E)

Using the wrong form may result in:

• 30% of your payment withheld automatically

• Delayed or frozen payments from banks or marketplaces

Do I send W‑8 or W‑9 forms to the IRS?

No.

You give these forms to the person or company requesting them, not to the IRS.

They use the form to:

• Report your payments to the IRS

• Decide whether to withhold any U.S. tax

Tip: Submit a new form whenever your tax status or address changes.

How do I fill out these forms?

Form W‑9:

• Enter your full name and U.S. address

• Provide your SSN or EIN

• Confirm your U.S. status

Form W‑8BEN (Individuals):

• Provide your name, address, and country of citizenship

• Enter your foreign tax ID number

• Claim tax treaty benefits if applicable

Form W‑8BEN‑E (Entities):

• Provide the entity’s name and country

• Declare tax classification and FATCA status

• Include ownership details, if required

Why does it matter if I choose the wrong form?

Submitting the wrong form -or none at all -can lead to:

• 30% automatic U.S. tax withholding

• Delayed or frozen payments

• Extra tax filing work to recover withheld funds

Always:

• Confirm your tax residency

• Use the correct form

• Update it if your status changes

Where can I get help with W‑8 and W‑9 forms?

At Expats Overseas, we help Americans abroad understand and meet their IRS obligations when it comes to:

• Foreign inheritances and gifts

• U.S. estate and gift tax compliance

• Correctly filing Form 3520 and other required disclosures

• Avoiding penalties for non-reporting

We work with experienced CPAs who specialize in international taxation.

Contact us today for a free, no-obligation consultation. We’ll help you protect your inheritance—and your peace of mind.