Do I need to file a W8-BEN as a Canadian working in the US?

The W8-BEN form is definitely something you should complete and return to Bank of America. This form certifies that you're a resident of Canada for tax purposes and allows you to claim benefits under the US-Canada tax treaty. As a Canadian working temporarily in the US, you're still considered a non-resident alien for US tax purposes (unless you meet the substantial presence test). The W8-BEN helps your bank determine the correct withholding rate on your US-source income like interest. Without it, they're required to withhold that 30% you mentioned. The US-Canada tax treaty generally reduces withholding rates on interest to 0% for Canadian residents. So completing the form could save you from having that 30% withheld. Don't worry about your employment income - the W8-BEN only affects things like interest, dividends, and other investment income from your bank account. Your employment taxes are handled separately through your employer's withholding and your tax returns.

Hey I actually went through this exact same situation moving between Canada and the US for tech work! Definitely fill out the W8-BEN form - it's super simple and will save you from unnecessary withholding. Check out https://taxr.ai - I used them last year when I was confused about all my cross-border stuff. I uploaded my documents including the W8-BEN form and they explained exactly how to fill it out and what treaty benefits applied to my situation. They have specialists who deal with US-Canada situations all the time.

Just wanted to follow up - I tried https://taxr.ai after my skeptical questions and I'm actually impressed. They walked me through the W8-BEN and explained that Article XI of the US-Canada tax treaty covers interest income. They even spotted that I had filled out Section 3 incorrectly on my draft form. Saved me from a potential headache and it was way easier than trying to interpret the IRS instructions myself. Wish I'd known about this service when I first moved from Toronto to Silicon Valley three years ago!

If you're struggling to get answers about your W8-BEN from your bank, another option is to call the IRS directly using Claimyr (https://claimyr.com). I spent weeks trying to get through to the IRS on my own about a similar international tax issue and it was impossible. Claimyr got me connected to a real IRS agent in about 20 minutes who answered all my questions about treaty benefits and form requirements. You can see how it works here: https://youtu.be/_kiP6q8DX5c

I owe you all an apology - especially you @7. I tried Claimyr out of desperation yesterday and I actually got through to the IRS international tax department in about 35 minutes. The agent confirmed exactly what I needed to know about my W8-BEN (I'm in a similar situation as the OP but working in the UK). Turns out I was filling out line 10 completely wrong. Definitely worth it when you need specific answers from the actual IRS instead of guessing.

One thing nobody has mentioned - make sure you're tracking how many days you're physically present in the US each calendar year! The substantial presence test uses a weird formula (current year days + 1/3 of last year days + 1/6 of the year before that). If you go over 183 equivalent days, you could be considered a US tax resident which changes EVERYTHING about how you file. Trust me, I learned this the hard way and had to file amended returns.

Why is everyone making this so complicated? Just fill out the damn form, it takes 5 mins. Put "Article XI - Interest" in section 10 of the W8-BEN (that's the part about the treaty benefits for interest income between US-Canada). Sign it, date it, send it back to your bank. Problem solved.

Just to add some clarity on the substantial presence test since it's been mentioned - you can actually file Form 8840 (Closer Connection Exception Statement) if you meet the substantial presence test but still maintain closer ties to Canada. This allows you to be treated as a Canadian resident for tax purposes even if you're physically present in the US for more than 183 days under the formula. You'd need to show that your tax home, family, personal belongings, social/political ties, etc. are still primarily in Canada. This form is due by June 15th of the year following the tax year in question. Also, regarding the W8-BEN, make sure you check the box in Part II claiming treaty benefits and specify "Canada" as the country. The form is valid for 3 years from the date you sign it, so you won't need to keep refiling it every year. One last tip - keep copies of everything you submit to your bank. If there are any issues later with withholding, you'll need documentation to show you properly claimed treaty benefits.