Which Tax Form Should I Select?
Overview:
3 simple questions can help you choose a tax certification form. Read the questions and select the form. For more detailed help, see Tax Information & Reporting.
Question # 1: Are you a U.S. Person or a U.S. Entity?
| • U.S. Citizen | • U.S. Business or Organization |
| • U.S. Green Card Holder | • U.S. Domestic Trust |
| • U.S. Legal Resident | |
If the answer is YES, complete Form W-9
If the answer is NO, go to # 2.
Question # 2: Do you have a U.S. Visa?
| • H-1B Visa Holder | • TN Visa Holder |
| • O-1 Visa Holder | |
If the answer is YES, find your status by the "substantial presence test." See More U.S. Legal Resident Info
If the answer is NO, go to # 3.
Question # 3: Are you a Legal Resident or Entity of another country?
*Question does Not apply to U.S. Citizens/Entities or Green Card Holders
| • Permanent Home Outside of U.S | • Entity Formed Outside of U.S. |
| •Business or Organization formed outside of U.S. | |
If the answer is YES, complete Form W-8 (U.S. Citizens, Green Card Holders, and Entities still complete the W-9.)
NOT SURE because you work, live, or study in the U.S. then, see More U.S. Legal Resident Info
Disclaimer: IB does not provide tax advice. These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any international, federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor. We recommend that you consult a qualified tax adviser or refer to the U.S. Internal Revenue Service.
Certify Your Tax Status
Overview:
Filling out a tax certification form is required to open an IB account. The forms confirm your tax status in relation to the United States. Information provided by you may lower or exempt the U.S. tax withholding on your account.
Background:
This article will help you to:
►Choose the correct certification form ►Find your tax treaty benefits
►Fill out and submit your form online ►Answer tax certification questions
Which Form Do You Pick? |
Tax Treaty Benefits |
|
Management of account activity differs for each account type. IB is a U.S. broker and must follow U.S. guidelines. 3 simple questions help you choose the right form |
Some countries have a tax treaty with the U.S. Find out if you benefit from a lower tax-withholding rate. Tax Treaty Benefit Info |
Filling Out The Form |
Tax Certification – FAQ’s |
| The certification form is direct. Supply basic account information on the true owner of the assets or entity. Select W-9 Instructions or W-8 Instructions for help. | Seek professional advice for tax questions. These common questions and answers may help you make an informed decision. Tax Certification - Frequently Asked Questions |
Disclaimer: IB does not provide tax advice. These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any international, federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor. We recommend that you consult a qualified tax advisor or refer to the U.S. Internal Revenue Service.
Cash Accounts: Does a cash account require completion of a W8 form?
If you are a non-US person or entity, Interactive Brokers is required to have a valid form W8 certifying your country of tax residence at the time of application. You may update your W8 form at any time in Account Management.
Tax Reporting: Availability of 1099 Forms
By February 15, your consolidated Forms 1099 will be available for the immediately preceding year. We often need to amend and re-issue 1099 Forms as additional information becomes available to us. We strongly recommend that you periodically check back for revisions as you prepare and finalize your tax filing.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax Reporting: Can I specify cost basis for positions transferred to my IB account?
Yes. IB’s Position Transfer Basis allows you to enter a cost basis to a specific ACATS or ATON transfer date. Log in to Account Management with your IB username and password, select Report Management, then click Position Transfer Basis.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
UK Persons and Entities: Considering Forex (spot) trading is not regulated do I have to pay capital gains tax?
Yes.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: UK Persons and Entities: What happens if I move from the UK to another country?
IB customers are expected to notify us promptly of any changes to particulars including, but not limited to, address, residency, and net worth. To update your account information, log into Account Management and click Manage Account > Account Information > Details. If you are using the old Account Management layout, select Account Information in the Account Administration section. If you update your address or residency, you must also resubmit your Form W-8.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: UK Persons and Entities: How do I access my tax forms?
Your tax forms, including Form 1042-S, Annual Activity Statement and Dividend Statement, are available electronically. To access, log into Account Management and click Report > Tax Forms. If you have the old Account Management layout, select Tax Forms from the Report Management section. Please review the information on your forms.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
Tax: UK Persons and Entities: UK Residents IB Accounts
Residents of the UK, EU countries and other select countries (i.e., Switzerland) may only open an account with Interactive Brokers (UK) Limited, irrespective of where you are domiciled. For your reference, Interactive Brokers (UK) Limited acts as an arranger for Interactive Brokers LLC. Interactive Brokers LLC holds clients funds and assets.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
UK Persons and Entities: How to Retain a Copy of Your Form W-8
As you complete Form W-8, you have the option to print a copy for your records.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
