# Exemption from backup withholding on US income?



## matthewuk (5 mo ago)

Hello! I am a US citizen residing in the UK for the last 12 years and working as a self-employed person here, paying UK taxes. I have recently been contracted to provide some self-employed work with a US company and am trying to complete a Form W9 that they are requesting.

My understanding is that the US company I am working for should not withhold any money from my earnings because I declare all of my income here in the UK. Is that correct? When completing the FACTA section of the W9, I cannot find an exemption classificiation that meets my situation and the instructions state that generally individuals are never exempt. 

I am not looking to dodge any taxes. I just want to pay the right amount in the right country. I will certainly report my US earnings to the UK governement and those earnings will probably be less then $2,000 USD per year. 

Any advice on which form I should complete or how claim exemption from withholding?

Thank you,
Matthew


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## Bevdeforges (Nov 16, 2007)

If you are a US citizen, you also are supposed to be reporting all of your worldwide income to the IRS every year. FATCA has nothing to do with this. In Part II of the form, you are asked to certify that you are not subject to backup withholding, which you are not, assuming that you will be taking either the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit (FTC) on your US forms. The part about FATCA codes in Part II refers to question 4 in the top section of the form - which reads (in part) "4 Exemptions (*codes apply only to certain entities, not individuals*; see instructions on page 3):"


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## matthewuk (5 mo ago)

Thank you, Bevdeforges. Yes, I should have said, I am reporting my worldwide income and using the FEIE exclusion. Thank you for the info.


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## Moulard (Feb 3, 2017)

matthewuk said:


> Any advice on which form I should complete or how claim exemption from withholding?


Complete Form 673 and provide it to your US employer.



https://www.irs.gov/pub/irs-pdf/f673.pdf


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