Story: For all Upwork users in the world?
It is the end of 2022, I received an email from Upwork.
Hi Takashi,
We are reaching out because we are required to make sure you’ve filled out a new W-8BEN or W8BEN-E form and included your tax identification number and current tax residence.The U.S. Internal Revenue Service (IRS) requires us to collect this information from all freelancers outside the U.S. It’s important to complete the form by Dec. 31, 2022, otherwise we will have to begin withholding U.S. income taxes from your earnings on Upwork.
It sounds high priority and I have to complete it as soon as possible, but I have no idea what it is. I assume that freelancer who uses United States based online marketplace (Fiverr, Upwork or Toptal, etc) in the world is facing the same issue on W-8BEN. I searched for it and I am going to complete it at the end of this blog.
What is W-8BEN?
What are W-8BEN or W8BEN-E forms?
These forms are required by the IRS(Internal Revenue Service) and are used to determine whether you live in the U.S. and what taxes, if any, we need to collect from your earnings on Upwork.
Why is it important to fill in these forms?
Without these forms as proof that you are a non-U.S. person, we’ll be required to withhold 30% of your future earnings on Upwork and send them to the IRS. As long as a new W-8BEN/W-8BEN-E form is filled out completely, we are not required to withhold at this rate.
What happens if I don’t fill in these forms?
We will be required to comply with IRS regulations and withhold income tax from your future earnings if a new W-8BEN or W-8BEN-E is not completed by Dec. 31, 2022. Any tax withheld this way will be sent to the IRS. We will not be able to provide refunds on tax withholdings submitted to the IRS, even if the forms are later completed.
W-8BEN at IRS
Please no mistake. W-8BEN is for freelance who lives outside of the Unites States. W-8BEN-E is for a company which is located in outside of the Unites States.
What is FORM W-8BEN and Why do I have to Complete it? | Part 1/3
©James Baker CPA
– You are an individual=W-8BEN
– You are NOT an individual=W-8BEN-E
– You are a U.S. citizen or other U.S. person, including a resident alien individual=W-9
– You are a beneficial owner claiming that income is effectively connected with the conduct of trade or business within the United States
(other than personal services)=W-8ECI
– You are a beneficial owner who is receiving compensation for personal services performed in the United States=8233 or W-4
– You are a person acting as an intermediary=W-8IMY
How do I fill out a W-8BEN form easily?
©Trading for Everyone International
I wrote W-8BEN, but I could not find information where I send this form. In addition, my situation is a little strange. I am using company/business name for individual freelance business. I was not sure which name I need to use on W-8BEN form which is for individual.
How to Complete W-8BEN Form
©Anthony Godinho
How to complete W-8BEN won’t be the issue. I cannot find what I need to do this form. I saw many references that I should not send W-8BEN to IRS. I don’t.
Conclusion: I could complete W-8BEN on Upwork without PDF form
I completed W-8BEN, but I could not find information where I send this form. I backed to Upwork and clicked an edit button. I just followed the guidance and fill out the blanc. Then, somehow I could finish. I have no chance to use W-8BEN PDF. Is this really correct?
I asked where I file W-8BEN to Upwork and I got response. In short, we can complete W-8BEN at Upwork website. You don’t need to download the doc and fill out.
I don’t know who will face the issue during this documentation. Just in case, the reference is below and you can chat with Upwork support anytime. Just you need to complete W-8BEN by the end of 2022. Otherwise, Upwork will takes 30% commission fee for your next project after 2023. Please complete it as soon as possible.
