[Abhinav1088]

Hi,

I am an F-1 student currently on OPT and I am working as an independent contractor. Recently my contracting agency sent me W-8BEN form to fill. I would like to know if this is the correct form for me? Also what exactly is this form for?

[AtlantaTaxExpert]

Yes, it IS the correct form. In your case, it is the form that tells the "employer" your correct name, address and SSN.

[Abhinav1088]

Thanks. Also does W-8BEN means that I would be losing 30% tax on my paycheck?

PS - I am from India.

[AtlantaTaxExpert]

No. As an independent contractor, they probably will withhold ZERO taxes from your pay, which can be a problem if you do not put money aside (about 20% of each paycheck should do) to pay the taxes when you file.

[Abhinav1088]

Thanks. And I need to fill 1040NR along with schedule-C till April next year right?

[AtlantaTaxExpert]

Yes, that is correct.

[Abhinav1088]

Hi,

Thanks for answering my previous queries.
I read that contractors need to pay taxes every quarter. Is this true? Also what's the difference between w-8ECI and w-8BEN?

[AtlantaTaxExpert]

Abhinav,

You CAN make quarterly payments, but in the FIRST year, you are NOT required to.