Taxes a US non-resident has to pay
Thread poster: Sofía Bolontrade

Sofía Bolontrade
Brazil
Local time: 16:23
Member (2010)
English to Spanish
+ ...
Jan 3, 2013

Hello
I need some help. I have an account in the US and I am not a resident. I am a freelancer and my client makes deposits in that account for my work. The deposits come from the US and from Ireland.
I only have a VISA as a tourist...I am Argentinian and live in Argentina. Now I received a Certificate of Foreign Status of Beneficial Owner from the Bank. But, according to what I have read, I think I have to complete some other forms (Form 1040NR, I think) and send them to the IRS....
Is that the case? Can you please advise? Thanks very much.
Regards,


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Phil Hand  Identity Verified
China
Local time: 03:23
Chinese to English
You don't have to send anything to the IRS Jan 3, 2013

I had exactly the same problem as you. Those forms are very confusing! In the end I emailed the IRS and asked them. They said we don't have to submit any forms to them. You just sign the form that the agency gave you and send it back to them, and they use it to prove to the IRS that they are paying foreign nationals. But you don't have to fill out any forms for or pay anything to the American IRS.

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Sofía Bolontrade
Brazil
Local time: 16:23
Member (2010)
English to Spanish
+ ...
TOPIC STARTER
No forms and no money was withheld from your account? Jan 3, 2013

According to what I had read I thought I had to complete:

1042-S, Foreign Person's U.S. Source Income Subject to Withholding

and then they would make me pay aprox 30% ....I will phone and hope they reply the same.

Even if you did not complete forms, no money was withheld?


Thanks!!!


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lisa kramer taruschio  Identity Verified
United States
Local time: 21:23
Italian to English
Get info at your local US consulate or the embassy Jan 3, 2013

Usually the American consulate or embassy (depending where you live) has a tax department/office and they are very knowledgable about all US tax matters for citizens and non-citizens. You should at least try telephoning your nearest US consulate or embassy. I know the Embassy in Rome also has a list of American accountants living in Rome/Italy who are expert in these matters.

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Giuseppina Gatta, MA (Hons)
Member (2005)
English to Italian
+ ...
I'll tell you what to do Jan 3, 2013

Sofía Bolontrade wrote:

According to what I had read I thought I had to complete:

1042-S, Foreign Person's U.S. Source Income Subject to Withholding

and then they would make me pay aprox 30% ....I will phone and hope they reply the same.

Even if you did not complete forms, no money was withheld?


Thanks!!!


Hello Sofia, although I am not a CPA or consultant, I can tell you what to do. Normally the bank is supposed to provide you with forms to fill up, in which you declare that you are not a resident, then nothing will be withheld.

If you did not complete them, they would assume you are a resident and take 30% of your money.
It is very simple and you don't need to do anything else, don't need an accountant etc.

HTH
Giusi

[Modificato alle 2013-01-03 11:16 GMT]

[Modificato alle 2013-01-03 11:16 GMT]

[Modificato alle 2013-01-03 11:33 GMT]


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Phil Hand  Identity Verified
China
Local time: 03:23
Chinese to English
Correspondence with the IRS Jan 3, 2013

FYI, in the following thread I posted an email received from the IRS about this question. My payments are not to a US bank, but I'm assuming the principle is the same.

http://www.proz.com/forum/business_issues/232238-need_an_itin_number_for_a_w_8ben_to_work_for_a_us_agency.html


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Sofía Bolontrade
Brazil
Local time: 16:23
Member (2010)
English to Spanish
+ ...
TOPIC STARTER
just completing the form--- Jan 3, 2013

Hi Phil and all,
Thanks for the link. I phoned the bank and they say I only have to complete that form and sent it back.... I do not have to get an Itin...
Thanks!


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Taxes a US non-resident has to pay

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