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sb47684 · Nov 13, 2016, 03:59 PM

Hi,

I was on F1 OPT till October 2016 and my H-1B got activated starting this October. My current employer granted restricted stock units (RSUs) but to accept the grant, fidelity (stock holder) is asking for W-9. But my question is, me being non-resident alien (if believe so, am I not?) can I fill w-9? I think w-9 should be filled only by US citizens or resident aliens only, right? Should I submit a w-9 substitute form?

Hoping an early response.

Thanks

newacct · Nov 13, 2016, 06:42 PM

Yes, you can only fill out W-9 if you are a resident alien. If you are a nonresident alien, you would fill out W-8BEN. The question is whether you are a resident alien or not. This is somewhat complicated as it may depend on the choices you make in the rest of the year.

You were on F-1 for most of this year. If you were in the first 5 calendar years of F-1 (i.e. you came to the US in F-1 in 2012 or later, and you hadn't been in the US before that), your time on F-1 this year would be exempt from the Substantial Presence Test, and your remaining days on H-1b this year would be insufficient to satisfy the Substantial Presence Test, and so you would be a nonresident alien for all of this year. If you came to the US in F-1 in 2011 or earlier, you would be a resident alien for all of this year. Note that even in the earlier case where you're a nonresident alien, you can make a choice called First Year Choice that will make you a resident for the part of the year you're on H-1b. So the answer is that it depends.

sb47684 · Nov 13, 2016, 09:49 PM

Thank you for the answer.

I came to US for the first time on August 2014. So, I think I am still non-resident alien. If I am correct, I shouldn't fill W-9 form. As fidelity (stock holder) demands what are repercussions if I fill W-9 being non-resident alien?

And do you recommend making first year choice? To make myself resident alien? What are the benefits? I see only con in-terms of more tax compared to being non-resident alien. Please help me understand.

Thanks.