About W8 form IBKR

[adityain2003]

I am an Indian and have been in the US for the past year on a J-1 visa. Today I got a message from IBKR regarding the W8 form. A small position <$40 is open, but I haven't traded anything in the last 3 years. Do I need to update my US tax residency in IBKR, where it asks for my SSN and everything, and fill out the tax form?

[pk]

@adityain2003 , 

(a) are you saying you entered the USA with J-1 sometime in 2023 or 2024 ?

(b) Was this your first entry/stay in the US in the last three years i.e. through 2020 --- this is for determining if you are NRA or Resident for the tax year 2025 ( I am assuming you are talking about current calendar year)

(c) When did you open your investment account and did you use W-8-BEN or what ?

(d) Since there is a two year J  tax benefit limitation, did you plan to stay in the USA past 2025 or what?  I am assuming here that your J visa is for teacher/researcher category and not  student/trainee.

I will circle back once I hear from you --yes ?

[adityain2003]

Hello PK ji, nice to hear from you once again.

I entered the US in Aug-2024 and I am a non-resident alien.

The investement account was opened in 2022 and the position is from the same year- 2022. This is the first time that I have been asked to recertify the W8 form.

I dont intend to stay beyond Aug-2026 i.e. the two year period

Thank you!

[pk · Accepted solution]

@adityain2003 , Namaste ji.  Thought I recognized your name.

In that case please use a  W-8-BEN to report your foreign status to the brokerage ( assuming that this is a US brokerage).

Please consider / consult with a tax professional  about disposition steps before you leave the USA , else you may have to consider filing 1040-NR on US source income ( during disposal  of investment post departure). Unless you plan to come back after a 2 year hiatus.

Is there more I can do for you ?  You can always PM me  so as to limit prying eyes on this public board -- even after you leave the US.

Namaste ji

pk

[adityain2003]

Sure, and thank you !