W9 Exempt Payee Code

If you don’t live in the United States but you’re a US person that is exempt from filing a federal income tax return, meaning that you don’t go over the income threshold, there is no point in withholding taxes. With Forms W-9, the payers usually don’t withhold income taxes but specific situations like you not furnishing the payer with a copy on time may result in backup withholding.

Fill out Form W-9 2023

Since you would only get your money back when you file a federal income tax return where this shouldn’t happen in the first place, letting know the payer that you don’t need to pay federal income taxes is your best bet.

Entering exempt payee code on Form W-9

This all boils down to entering the exempt payee code on Form W-9. However, unlike other common tax forms that have specific codes for boxes, like W-2 Box 14 codes, Form W-9 doesn’t have it. On the Form W-9 exempt payee code, entering Not Applicable or N/A, or something similar in that nature would work just fine.

That said, you don’t need to enter a special code that indicates you’re exempt from FATCA reporting.