Stay secure: Be cautious of phone calls claiming to be from UNFCU reporting fraud on your accounts.  Contact us directly to verify.

Tax reporting FAQs

UNFCU does not provide tax advice. This material is for informational purposes only, and should not be relied on for tax advice. Please consult with a professional tax advisor before engaging in any transaction.

Yes. The dividend you earn on your share accounts is considered interest income.

If you earned at least $10.00 in interest, we must report it to the IRS if you are a: 

  • US taxpayer: We use Form 1099-INT to report this information to the IRS. 
  • Non-US taxpayer who is a resident of a country with which the US has a reciprocal tax information sharing agreement: The list of such countries is available in our guide (PDF). We use Form 1042-S to report this information to the IRS. The IRS does not require any action with this form. 

No, these rules apply to all United States financial institutions.

No. If you don't pay US taxes, complete the IRS tax certification Form W-8BEN every three years. This way, we will not withhold any interest you earned.

If you earned more than $10.00 in interest, you will receive Form 1042-S. A copy of the form will also be sent to the US Internal Revenue Service (IRS). The IRS has information sharing agreements with other countries and may share information from your Form 1042-S. 

You should complete the IRS Form W‑8BEN every three years to certify that you are not a US taxpayer.

The IRS reporting rules apply to all individuals with an account at a US financial institution. As a US-based credit union, UN exemptions do not apply to our operations.

Download our sample form (PDF) to see which sections are mandatory and how to complete the required fields. As of 1 January 2018, you need to include your foreign tax identifying number on the form. If you do not have one, you need to provide an explanation. Without this information, your form will be considered incomplete. 

If you receive Form 1042-S, it will include your foreign TIN. A copy of the form will also be sent to the IRS. The IRS does not require any action with this form.

You can if the country has published guidance indicating that this number is the functional equivalent of a foreign TIN. You can view a listing of domestic rules in select jurisdictions on the OECD (Organisation for Economic Co-operation and Development) website. Visit the OECD site. When completing Form W-8BEN, you cannot use a social security or other tax identifying number issued by the US.

Yes, but each account holder must complete their own Form W‑8BEN.

No, you should complete Form W‑9 and return it to UNFCU as soon as possible. 

This test is based on a person’s physical presence in the United States. The test is satisfied if a person’s days of physical presence within the United States equal or exceed 183 days over a three-year test period. 

The formula is as follows: 

All days of US presence in current year + 1/3 of days of US presence for the 1st preceding year + 1/6 of days of US presence for the 2nd preceding year 

Under this test, a person is generally considered to be a US taxpayer from their first day of physical presence in the United States in the year in which the substantial presence test is satisfied. 

For more information, view the appendix in our guide (PDF)

Yes, each account holder must file Form W‑8BEN every three years to certify that they are not a US taxpayer.

Yes, we will need the minor's information for Form W-8BEN. The completed form will need to be signed by the minor's guardian. As with all Form W-8BENs, the minor's foreign tax identifying number must be included, or you must provide a reasonable explanation as to why it cannot be provided.