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Taxes; Still need a w8-ben?

Taxes; Still need a w8-ben?

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Old May 5th 2010, 8:23 pm
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Question Taxes; Still need a w8-ben?

I just moved to the US and went to open an account at Frost Bank, (I have a US HSBC account too but it turns out there is no local branches and their phone banking is terrible!)

The chap who signed me up seemed a little confused about my status and didn't want to use my SSN. He used my Brit passport details instead and got me to fill in a form saying my residence was at my old UK address and a w8-ben that exempts me from paying US tax because I'm a British citizen.

The account was opened successfully but I don't think the IRS will be too happy it. I thought that now I'm living and working here I have to pay US taxes...? Is that correct?
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Old May 5th 2010, 8:39 pm
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Default Re: Taxes; Still need a w8-ben?

Originally Posted by Aaarrrggg
I just moved to the US and went to open an account at Frost Bank, (I have a US HSBC account too but it turns out there is no local branches and their phone banking is terrible!)

The chap who signed me up seemed a little confused about my status and didn't want to use my SSN. He used my Brit passport details instead and got me to fill in a form saying my residence was at my old UK address and a w8-ben that exempts me from paying US tax because I'm a British citizen.

The account was opened successfully but I don't think the IRS will be too happy it. I thought that now I'm living and working here I have to pay US taxes...? Is that correct?
The W8-BEN only exempts you from having the bank withhold tax at source. If you're resident in the US for this tax year, you'll owe US tax on the interest earned. The bank should report this interest to you on form 1099-INT at the end of the year.
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