When Do I Switch from Form W-8BEN to Form W-9 After Getting a Green Card?

You switch from Form W-8BEN to Form W-9 on the day you become a U.S. resident alien. For green card holders, that is the date your green card is issued (the “lawful permanent resident” date on your card). From that date forward, you are a U.S. person for tax purposes, and any payer holding a W-8BEN for you must receive an updated W-9 (IRS: About Form W-9).

Who you need to notify:

• U.S. brokerages: update your status so they issue 1099s instead of 1042-S and stop applying NRA withholding
• U.S. banks: update your account to reflect U.S. person status
• U.S. employers or clients: provide a W-9 so they report your income correctly
• Foreign banks: you may now need to provide a W-9 or FATCA self-certification as a U.S. person

What happens if you don’t switch:

• Over-withholding: payers continue withholding at the 30% NRA rate on dividends and interest instead of the standard backup withholding rate
• Wrong tax forms: you receive Form 1042-S instead of 1099, creating reconciliation headaches on your Form 1040
• FATCA issues: foreign banks that still have you classified as an NRA may not report your accounts under FATCA, creating a potential compliance gap
• Potential false statement: continuing to certify foreign status on W-8BEN when you are a U.S. person is incorrect and can carry penalties

The reverse transition (U.S. person to NRA after renouncing or surrendering a green card) requires switching from a W-9 to a W-8BEN form and is equally important. Your U.S. brokerage needs the updated W-8BEN to apply the correct treaty withholding rate.

For more, see our W-9 vs W-8 guide.