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Printable Form W-8BEN-E Sunnyvale California: What You Should Know

Who Makes Form W-8BEN? When Does Form W-8BEN-E Have to Be Used? How Many Forms Are Needed to Claim Exempt Status? Does a W-8BEN-E Have to Be Used First? Form W-8BEN, if filled out by an employee of, or other person in control of, a foreign entity located in the U.S. who owns any stock or other securities in that enterprise, (including any dividends paid out on that stock or securities). That qualifies for U.S. federal withholding tax at the same rate as a U.S. person. If the same person also claims an exemption for foreign wages, and you make such a claim on your W-8E form, then you have to use Form W-8BEN. If you do not claim a withholding allowance or exempt status, and you file an employment tax return, you can use any of the other five types of W-8 forms to file the tax return on your behalf. Example: You are an employee of a foreign person residing in California that owns shares in a company located outside the U.S. You elect the W-8BEN form, which allows you to claim your foreign employment tax exemption, including income from the company's overseas-owned stocks and securities. You also file an IRS Form 1040 for the company as a shareholder-employee who made, as a share owner, a Form W-8BEN on behalf of his or her worldwide foreign partnership or limited liability partnership. Who May Use Form W-8BEN? • Non-U.S. citizens living in California — Foreign spouses, children, parents and grandparents. • Employees and directors of foreign corporations that are based in California — Employees, directors, officers, shareholders and other persons who are resident citizens of the U.S. or resident aliens who are resident in the U.S. • Employees of a U.S. non-profit corporation, such as an American Red Cross, whose primary place of business in the U.S. is based in the U.S. Taxpayers must show they are not subject to U.S. federal or state income tax on their foreign source wages. • Individuals who are required to file an income tax return based on income which is not effectively transferred to the United States. • U.S. non-citizens who are not required to file a U.S. federal income tax return.

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