US citizens living abroad should generally use Form W-9, not Form W-8BEN, when a bank, broker, or payer requests certification of their US tax status.
Form W-9 is for US persons, while Form W-8BEN is for nonresident alien individuals.
If you’re an American living abroad, you may be asked to complete Form W-8BEN or Form W-9 when opening a bank account, investing through a brokerage, or receiving certain payments.
The distinction can be confusing, especially if you’ve lived overseas for years, pay taxes in another country, or hold dual citizenship.
Although both forms help financial institutions determine US tax reporting and withholding requirements, they serve different purposes.
The key difference is your US tax status, not where you live. Understanding which form applies can help prevent incorrect withholding, account restrictions, and tax reporting problems.
Key Takeaways: W-8BEN vs. W-9 for US Expats
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US citizens generally use Form W-9, even when they permanently reside outside the United States.
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Form W-8BEN is for nonresident alien individuals who need to establish their foreign status for US tax purposes.
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Dual US citizens cannot use Form W-8BEN simply because they hold another citizenship.
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Foreign banks and brokers may request Form W-9 or an equivalent certification to comply with FATCA.
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Eligible foreign individuals may use Form W-8BEN to claim reduced US withholding rates under an applicable tax treaty.
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Neither form replaces an annual US tax return, FBAR, or Form 8938 when those filings are required.
W-8BEN vs. W-9: Main Differences
| Feature | Form W-8BEN | Form W-9 |
|---|---|---|
| Who uses it? | Nonresident alien individuals | US citizens and other US persons |
| Main purpose | Certify foreign tax status | Certify US tax status and taxpayer identification number |
| US citizens abroad | No | Yes |
| Dual US citizens | No | Yes |
| Tax treaty benefits | May claim reduced US withholding | Not generally used for this purpose |
| Common recipients | Payers, brokers, financial institutions | Banks, brokers, businesses |
| Submitted to IRS? | No | No |
Understanding IRS Form W-8BEN
Form W-8BEN, officially called Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), is used by nonresident alien individuals to establish that they are foreign persons for US tax purposes.
It is commonly requested when foreign individuals receive certain US-source income, such as dividends, interest, or royalties.
Form W-8BEN serves three primary purposes:
- Confirms that the individual is not a US person.
- Establishes beneficial ownership of the relevant income.
- Allows eligible individuals to claim reduced withholding rates under applicable US tax treaties.
Certain US-source payments to foreign individuals are generally subject to 30% withholding unless an exemption or reduced rate applies.
Example: French Investor Holding US Stocks
Suppose a French citizen living in France invests in US stocks through an international brokerage.
The brokerage may request Form W-8BEN to confirm the investor’s foreign status.
If the investor qualifies for benefits under the US-France tax treaty, the form may allow a reduced withholding rate on certain US dividends.
However, this treatment does not apply to US citizens simply because they reside in France.
What is IRS Form W-9?
Form W-9, officially titled Request for Taxpayer Identification Number and Certification, is used by US persons to provide their taxpayer identification number and certify certain information to a requesting institution or payer.
For individuals, US persons generally include:
- US citizens, including Americans living abroad.
- US resident aliens for federal income tax purposes.
Banks, brokers, financial institutions, and businesses commonly request Form W-9 when they need to document a person’s US tax status.
For most US citizens, the taxpayer identification number provided is their Social Security number.
Unlike Form W-8BEN, Form W-9 does not establish foreign status or claim the reduced withholding rates generally available to eligible nonresident aliens.
Instead, it confirms that the individual is a US person for applicable tax reporting and withholding purposes.
Should US Citizens Living Abroad Use W-8BEN or W-9?
US citizens should generally provide Form W-9 when asked to certify their US tax status.
According to the IRS, US citizens living outside the United States should not complete Form W-8BEN.
This remains true even if you:
- Have lived abroad for many years.
- Are a tax resident of another country.
- Earn all your income outside the United States.
- Have never worked for a US employer.
- Hold citizenship in another country.
US citizenship generally means you remain a US person for federal tax purposes, regardless of where you reside.
Example: American Living in Germany
An American citizen has lived in Germany for ten years and holds an investment account with a German brokerage.
The brokerage requests documentation of the individual’s tax status.
Although the individual lives in Germany and pays German income taxes, they remain a US person. They should generally provide Form W-9 or the institution’s accepted US-person certification rather than Form W-8BEN.
Questions About W-8BEN or W-9?
Have questions about W-8BEN, W-9, or your US tax obligations? Get expert assistance with your expat tax situation
What About Dual US Citizens?
Dual citizenship does not change the rule.
For example, someone holding both US and Italian citizenship remains a US person for federal tax purposes.
They cannot use Form W-8BEN to claim foreign status simply by identifying their Italian citizenship. Instead, they should disclose their US citizenship and provide the appropriate documentation.
Why Foreign Banks Request Form W-9 From Americans
Foreign banks may request Form W-9 because of the Foreign Account Tax Compliance Act (FATCA).
FATCA requires many foreign financial institutions to identify and report accounts held by specified US persons.
To meet these obligations, banks may request:
- Confirmation of US citizenship or tax residency.
- A Social Security number or other US taxpayer identification number.
- Current residential address.
- Certification of US tax status.
Some foreign banks use their own self-certification forms instead of the standard IRS Form W-9.
Providing this information helps the institution meet its FATCA obligations, but it does not replace an individual’s separate US reporting requirements.
For example, Americans whose aggregate foreign financial accounts exceed $10,000 at any point during the calendar year generally must comply with FBAR reporting requirements.
Those holding specified foreign financial assets above the applicable thresholds may also need to comply with FATCA reporting requirements on Form 8938.
How to Complete Form W-9 as a US Expat
Completing Form W-9 is generally straightforward for individual US citizens living overseas.
Step 1: Enter Your Legal Name
Provide your name as shown on your federal income tax return.
If applicable, enter any business or disregarded entity name in the designated field.
Step 2: Select Your Federal Tax Classification
Most individuals completing the form in their personal capacity select the individual/sole proprietor classification.
Different classifications may apply to businesses or entities.
Step 3: Provide Your Current Address
Enter your current address, which may be outside the United States.
Follow the requesting institution’s instructions if your foreign address does not fit the standard fields.
Step 4: Enter Your Taxpayer Identification Number
US citizens generally provide their Social Security number.
If the form relates to a business or another entity, a different taxpayer identification number may be appropriate.
Step 5: Sign and Submit the Form
Complete the required certification and submit Form W-9 directly to the requesting bank, broker, or payer.
Do not send it directly to the IRS.
Keep Your Foreign Accounts Compliant
From FBARs to Form 8938, we make sure every foreign account you hold is reported correctly on your US return.
What Happens If You Submit the Wrong Form?
Submitting an incorrect tax certification can create problems with a financial institution’s reporting and withholding procedures.
For example, a US citizen who incorrectly submits Form W-8BEN may be treated as a foreign person, potentially resulting in inappropriate withholding or inaccurate account documentation.
Similarly, a nonresident alien who submits Form W-9 may incorrectly certify that they are a US person.
If you submitted the wrong form, take the following steps:
- Contact the bank, broker, or payer that received it.
- Explain your correct US tax status.
- Submit the appropriate replacement form or certification.
- Ask whether any withholding or tax reporting records require correction.
Filing your annual US tax return does not automatically correct inaccurate documentation held by a financial institution.
W-8BEN, W-9, and Your US Tax Return
Neither Form W-8BEN nor Form W-9 is an annual income tax return.
These forms help financial institutions and payers determine how to classify individuals for US withholding and information reporting purposes.
US citizens living abroad generally remain responsible for reporting worldwide income on Form 1040, including taxable income from foreign investment accounts.
For example, interest, dividends, and realized capital gains from overseas investments may need to be reported on a US tax return.
The US tax treatment of foreign investments depends on the type of asset and income received, not simply which certification form was provided to the financial institution.
