[C27SK]

Hi,

I am an Indian staying in US with an L2 Visa from 19th March 2012 and will be in US for 5 more months. I received a contract job offer to work at home. The company has e-mailed me a W8-BEN form to fill up.

I went through IRS instructions and reached at possible answers for some questions as given below.

Permanent address: Indian address as shown in Passport?
Mailing address: US address?
SSN: I have an SSN, can fill in that

Section 9a:The beneficial owner is a resident of ( INDIA/ USA) with n the meaning of income tax treaty... which s the correct one ?INDIA or USA?

Section 11: should I tick this box?

Thanks for helping .

[AtlantaTaxExpert]

Use your INDIAN mailing address.

Yes, use your SSN.

INDIA tax treaty

Leave Section 11 box BLANK.

You need to complete Item 10 to specify that your contract income is NOT subject to U.S. income taxes.

[C27SK]

Hi,

Thanks for the reply.
Mailing address: I am located in US now. So why shouldn't I use the US mailing address ?
Regarding 10 : How to fill that?
Article?
0% with holding?
Specify the type of income: I will be receiving paycheck
Reason: as a non-resident alien with L2-Visa I am exempt from taxation?

Thanks for helping

[AtlantaTaxExpert]

When you are going to be doing the contract work, you will be located IN India; hence, the Indian address.

Yes, 0% on withholding, but you do NOT want to be paid under a w-2, but rather a Form 1042 or 1042-S with ZERO withholding. If you are paid under a W-2, they will withholding FICA (Social Security and Medicare) taxes for which you have NO chance of ever qualifying for benefits, so that is essentially WASTED money. Better you be paid under Form 1099-MISC and then you file a Form 1040NR with Form 8833 claiming the tax-exempt status under the Tax Treaty.

Research the tax treaty and find the article for "dependent services" (if paid under W-2) or "independent services" (if paid under Form 1099) that specifies that income earned inside Indian borders are subject only to Indian income taxes.

[C27SK]

Hi,

I am not going to work from India. I will be doing "internet based work at home" during my stay at US.The company has ensured that there will be no tax deduction from the offered payment as shown in contract and asked me to fill W8-BEN form.

Please help me fill the" article" section and "specify the type of income" in section 10
Thanks a lot for your consideration and help

[AtlantaTaxExpert]

If you are working from home IN the United States under a W-2, then there is NO NEED for the Form W-8BEN, because, under a "L" visa, you will file as a resident alien.

You need to complete Form W-9 to tell your employer your SSN and where you are living, and that's all.

If the employer insists on the W-8BEN, complete it with your U.S. address and SSN, and leave the rest of the form BLANK.

[C27SK]

Thanks

[AtlantaTaxExpert]

Thanks

Glad to help!