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How does withholding tax works


sandy234
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Can any1 tell me how does this works. Do you ever get your money back?

In theory, you can get your money back.

In practise, it's extremely difficult, and you probably have to consider that as lost money.

The most important thing is to apply for and obtain an ITIN number from the US Internal Revenue Service:

 

http://www.irs.gov/Individuals/General-ITIN-Information

 

This is a verification that you are not a US resident and don't have to pay US taxes on income.

You need to fill out the W-7 form with copies of your passport and send it to the IRS.

It's a bit of trouble to apply and get the number, but it's totally worth it.

As soon as you have your ITIN number, the company you're working for is no longer legally obligated to deduct the "tax withholding" (usually 30%) from what they pay you.

That can save you a lot of money in the future.

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In theory, you can get your money back.

In practise, it's extremely difficult, and you probably have to consider that as lost money.

The most important thing is to apply for and obtain an ITIN number from the US Internal Revenue Service:

 

http://www.irs.gov/Individuals/General-ITIN-Information

 

This is a verification that you are not a US resident and don't have to pay US taxes on income.

You need to fill out the W-7 form with copies of your passport and send it to the IRS.

It's a bit of trouble to apply and get the number, but it's totally worth it.

As soon as you have your ITIN number, the company you're working for is no longer legally obligated to deduct the "tax withholding" (usually 30%) from what they pay you.

That can save you a lot of money in the future.

I already have a TIN number but still 15% money is with with held by fgl

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you have an ITIN number I'm not sure they can legally withhold 15%.

 

The number itself isn't what grants you the reduced rate. It's, like it was said above, the contract your country has with the US.

The IRS has extensive lists of treaties online, a more comprehensive table can be found here for example: http://support.turbosquid.com/entries/172052-where-can-i-find-out-more-about-the-u-s-tax-treaty-with-my-country

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