Definition

Form W-8BEN certifies to a U.S. financial institution or payer that you are a foreign person, which sets the correct withholding on U.S.-source income such as interest or dividends and lets you claim reduced rates under a tax treaty. It is the nonresident counterpart to the W-9 that U.S. persons provide.

1. Form 1040-NR

   The U.S. tax return filed by nonresident aliens.
2. Resident Alien vs. Nonresident Alien

   IRS tax categories that determine whether you are taxed on worldwide or only U.S. income.
3. Foreign Tax Credit

   A U.S. credit for income taxes paid to another country, reducing double taxation.