Generally, U.S. payers of income other than wages, such as dividends and royalties, are required to withhold tax at a flat 30% (or lower treaty) rate on nonwage income paid to nonresident aliens. If you are a U.S. citizen or resident alien and this tax is withheld in error from payments to you because you have a foreign address, you should notify the payer of the income to stop the withholding. Use Form W-9 to notify the payer.
You can claim the tax withheld in error as a withholding credit on your tax return if the amount is not adjusted by the payer.
If you are a lawful permanent resident (green card holder) and a flat 30% tax was withheld in error on your social security benefits, the tax is refundable by the Social Security Administration (SSA) or the IRS. SSA will refund the tax withheld if the refund can be processed during the same calendar year in which the tax was withheld. If SSA cannot refund the tax withheld, you must file a Form 1040 or 1040A with the Internal Revenue Service Center in Austin to determine if you are entitled to a refund. The following information must be submitted with your Form 1040 or Form 1040A.
- A copy of the Form SSA-1042S, Social Security Benefit Statement.
- A copy of the "green card."
- A signed declaration that includes the following statements.
I am a U.S. lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. I am filing a U.S. income tax return for the taxable year as a resident alien reporting all of my worldwide income. I have not claimed benefits for the taxable year under an income tax treaty as a nonresident alien.
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